Question 1

The control function is:

Accepted Answer

A)  comparing actual with budgeted results and taking corrective action when needed.
B)  arranging of the necessary resources to carry out the plan.
C)  the directing,leading,and motivating of those necessary to carry out the plan.
D)  drafting the goals and strategies to achieve long-term results.E) All of the above
F) A) and D)

Question 2

Prime costs include direct materials,direct labor,and manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 3

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost.

Accepted Answer

A) True 
 B)False

Question 4

Managers must direct,lead and motivate during the implementation function.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following describes the Planning function within the management cycle?

Accepted Answer

A)  Setting short and long-term objectives
B)  Comparing actual to budgeted results and taking corrective action
C)  Taking actions to implement the plan
D)  Arranging the necessary resources to carry out the planE) None of the above
F) B) and C)

Question 6

All of the following terms are often used interchangeably to refer to the extraction of insights from large amounts of data except:

Accepted Answer

A)  big data.
B)  business intelligence.
C)  business analytics.
D)  business acumen.E) B) and C)
F) A) and B)

Question 7

Manufacturing costs are generally classified into which of the following categories?

Accepted Answer

A)  Relevant costs and irrelevant costs
B)  Direct materials,direct labor,and manufacturing overhead
C)  Prime costs and conversion costs
D)  Conversion costs,marketing costs,and administrative costsE) None of the above
F) B) and D)

Question 8

Which of the following is not a characteristic of managerial accounting?

Accepted Answer

A)  Information is used by internal parties.
B)  Information is subjective,relevant,and future-oriented.
C)  Reports are prepared as needed.
D)  Information is reported for the company as a whole.E) B) and C)
F) A) and B)

Question 9

For a cost to be relevant,it must be:

Accepted Answer

A)  a differential cost and a sunk cost.
B)  a differential cost,but not a sunk cost.
C)  a sunk cost,but not a differential cost.
D)  neither a differential cost nor a sunk cost.E) B) and C)
F) C) and D)

Question 10

Which of the following statements is correct about the triple bottom line?

Accepted Answer

A)  The triple bottom line measures a company's social impact,without regard for profit.
B)  The triple bottom line captures three factors: People,Profit,and Planet.
C)  The triple bottom line has replaced net income as the most crucial measure of a company's success.
D)  The triple bottom line reports profit at the expense of social factors.E) A) and B)
F) None of the above

Question 11

To earn summer money,Joe could mow lawns in his neighborhood,or he could work at a local grocery store.Which of the following is an opportunity cost of mowing lawns?

Accepted Answer

A)  Cash paid for gas to run the lawnmower.
B)  The time spent mowing the lawns.
C)  The wages he could have earned working at the grocery store.
D)  Depreciation on the lawnmower.E) None of the above
F) A) and B)

Question 12

Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?

Accepted Answer

A)  Stronger oversight by directors
B)  Code of ethics
C)  Stiffer fines and prison terms
D)  Anonymous tip linesE) A) and B)
F) A) and C)

Question 13

Adobe Music Company,which manufactures wooden and metal xylophones,incurred costs for the following items.
  Calculate each of the following,where the cost object is the xylophones manufactured by the company:
a.Total variable costs
b.Total fixed costs
c.Total direct costs
d.Total indirect costs

Accepted Answer

a.Total variable costs: $70,300 = $21,00...

Question 14

Hair salons and law firms are examples of which of the following type of organization?

Accepted Answer

A)  Retailers
B)  Service companies
C)  Manufacturing firms
D)  Merchandising companiesE) None of the above
F) C) and D)

Question 15

An irrelevant cost:

Accepted Answer

A)  is also called a differential cost.
B)  must differ between decision alternatives.
C)  must be incurred in the future rather than in the past.
D)  will not influence a decision.E) A) and B)
F) A) and D)

Question 16

Parkside Rentals,a firm that rents tuxedos for special events,incurred costs for the following items.
  Calculate each of the following,where the cost object is tuxedo rentals:
a.Total variable costs
b.Total fixed costs
c.Total direct costs
d.Total indirect costs

Accepted Answer

a.Total variable costs: $46,000 = $7,000...

Question 17

Prime costs are defined as:

Accepted Answer

A)  manufacturing costs plus non-manufacturing costs.
B)  direct labor plus direct materials.
C)  variable costs equal fixed costs.
D)  manufacturing overhead plus direct labor.E) A) and C)
F) A) and B)

Question 18

Pinnacle Manufacturing manufactures custom wheel covers.For each cost listed below,place an "X" in all of the appropriate categories.

Accepted Answer

<img  loading="lazy" src="/assets/images/blured-textbook.svg" class="d-inline m-1" alt="blured image" width="139" height="30"> Direct materials are the traceable mate...

Question 19

You are to receive five gold coins from your great uncle as an incentive to study hard.The coins were originally purchased in 1982.Your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable") .The amount your great uncle paid for the coins is a(n) :

Accepted Answer

A)  opportunity cost.
B)  indirect cost.
C)  sunk cost.
D)  overhead cost.E) B) and C)
F) A) and C)

Question 20

Which of the following statements is correct about sustainability accounting?

Accepted Answer

A)  Sustainability accounting has been in existence since 1592.
B)  Sustainability accounting tracks a company's "green" score.
C)  Sustainability accounting aims to provide managers a broad set of information to meet the needs of multiple stakeholders.
D)  Sustainability accounting is a subset of GAAP applied only to socially responsible companies.E) B) and C)
F) All of the above

Exam 1: Introduction to Managerial Accounting

Adobe Music Company,which manufactures wooden and metal xylophones,incurred costs for the following items. Calculate each of the following,where the cost object is the xylophones manufactured by the company: a.Total variable costs b.Total fixed costs c.Total direct costs d.Total indirect costs

Correct Answerverifieda.Total variable costs: $70,300 = $21,00...View AnswerShow Answer

For a cost to be relevant,it must be:

Correct AnswerverifiedShow Answer

Prime costs include direct materials,direct labor,and manufacturing overhead.

Correct AnswerverifiedShow Answer

Pinnacle Manufacturing manufactures custom wheel covers.For each cost listed below,place an "X" in all of the appropriate categories.

Correct Answerverified Direct materials are the traceable mate...View AnswerShow Answer

Which of the following describes the Planning function within the management cycle?

Correct AnswerverifiedShow Answer

Parkside Rentals,a firm that rents tuxedos for special events,incurred costs for the following items. Calculate each of the following,where the cost object is tuxedo rentals: a.Total variable costs b.Total fixed costs c.Total direct costs d.Total indirect costs

Correct Answerverifieda.Total variable costs: $46,000 = $7,000...View AnswerShow Answer

A cost that will occur in the future and differs between various alternatives under consideration is a relevant cost.

Correct AnswerverifiedShow Answer

All of the following terms are often used interchangeably to refer to the extraction of insights from large amounts of data except:

Correct AnswerverifiedShow Answer

Which of the following statements is correct about sustainability accounting?

Correct AnswerverifiedShow Answer

Which of the following statements is correct about the triple bottom line?

Correct AnswerverifiedShow Answer

The control function is:

Correct AnswerverifiedShow Answer

Which of the following changes introduced by the Sarbanes-Oxley Act is intended to counteract incentives for fraud?

Correct AnswerverifiedShow Answer

Managers must direct,lead and motivate during the implementation function.

Correct AnswerverifiedShow Answer

Manufacturing costs are generally classified into which of the following categories?

Correct AnswerverifiedShow Answer

To earn summer money,Joe could mow lawns in his neighborhood,or he could work at a local grocery store.Which of the following is an opportunity cost of mowing lawns?

Correct AnswerverifiedShow Answer

Prime costs are defined as:

Correct AnswerverifiedShow Answer

An irrelevant cost:

Correct AnswerverifiedShow Answer

You are to receive five gold coins from your great uncle as an incentive to study hard.The coins were originally purchased in 1982.Your great uncle will deliver the coins the week after finals (assuming your grades are "acceptable") .The amount your great uncle paid for the coins is a(n) :

Correct AnswerverifiedShow Answer

Hair salons and law firms are examples of which of the following type of organization?

Correct AnswerverifiedShow Answer

Which of the following is not a characteristic of managerial accounting?

Correct AnswerverifiedShow Answer

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a.Total variable costs: $70,300 = $21,00...
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Direct materials are the traceable mate...
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a.Total variable costs: $46,000 = $7,000...
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