Question 1

Recommending a course of action based upon patterns and insights from data is referred to as:

Accepted Answer

A)  predictive analytics.
B)  prescriptive analytics.
C)  descriptive analytics.
D)  diagnostic analytics.E) All of the above
F) B) and C)

Question 2

Which of the following statements is correct?

Accepted Answer

A)  A direct cost can be readily traced to a cost object while an indirect cost is traced only to manufacturing costs.
B)  An indirect cost can be readily traced to a cost object while a direct cost is traced only to manufacturing costs.
C)  A direct cost can be traced to a specific cost object,while an indirect cost cannot.
D)  An indirect cost can be traced to a specific cost object,while a direct cost cannot.E) B) and D)
F) A) and C)

Question 3

Analytics provides meaningful patterns and insights from data useful for all of the following except:

Accepted Answer

A)  managing resources.
B)  enhancing customer service.
C)  pursuing other business opportunities.
D)  preparing financial statements in accordance with GAAP.E) C) and D)
F) All of the above

Question 4

Whether a cost is treated as direct or indirect depends on whether tracing the cost is both possible and feasible.

Accepted Answer

A) True 
 B)False

Question 5

Financial accounting information is generally used exclusively by internal parties such as managers.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?

Accepted Answer

A)  The cost of the wood in the table.
B)  The cost of the labor used to assemble the table.
C)  The cost of the glass in the table.
D)  The cost of rent on the factory where the table is manufactured.E) B) and C)
F) A) and D)

Question 7

The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:

Accepted Answer

A)  accounting managers.
B)  marketing managers.
C)  production managers.
D)  all managers.E) A) and B)
F) A) and C)

Question 8

All manufacturing costs are treated as product costs.

Accepted Answer

A) True 
 B)False

Question 9

For a cost to be relevant,it must:

Accepted Answer

A)  differ between decision alternatives.
B)  have already been incurred.
C)  not influence a decision.
D)  not be a differential cost.E) All of the above
F) A) and C)

Question 10

GAAP reporting rules require that all manufacturing costs be treated as:

Accepted Answer

A)  period costs.
B)  product costs.
C)  value-added costs.
D)  relevant costs.E) All of the above
F) B) and D)

Question 11

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to reduce opportunities for error and fraud?

Accepted Answer

A)  Internal control report from management
B)  Code of ethics
C)  Stronger oversight by directors
D)  Internal control audit by external auditorsE) A) and B)
F) A) and C)

Question 12

Costs that can be traced to a specific cost object are:

Accepted Answer

A)  opportunity costs.
B)  direct costs.
C)  indirect costs.
D)  irrelevant costs.E) A) and B)
F) None of the above

Question 13

Indirect costs are:

Accepted Answer

A)  costs that are not worth the effort to trace to a specific cost object.
B)  costs that change,in total,in direct proportion to changes in activity levels.
C)  always irrelevant.
D)  costs that remain constant no matter the activity level.E) B) and D)
F) None of the above

Question 14

Managerial accounting,as compared to financial accounting,is primarily intended to facilitate:

Accepted Answer

A)  an understanding of GAAP.
B)  making decisions with timely,relevant information.
C)  conducting ethics investigations under SOX.
D)  reporting results to shareholders.E) A) and D)
F) B) and D)

Question 15

"Ethics" refers to all of the following except:

Accepted Answer

A)  the standards of conduct for judging fair from unfair.
B)  the standards of conduct for judging right from wrong.
C)  the standards of conduct for judging opportunity from incentives.
D)  the standards of conduct for judging honest from dishonest.E) B) and C)
F) A) and D)

Question 16

The term "Big data" refers to the volume,velocity and veracity of data.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  Financial reports are prepared according to GAAP.
B)  Information is used primarily by internal parties.
C)  Information is objective,reliable,and historical.
D)  Reports are prepared periodically.E) All of the above
F) A) and B)

Question 18

Which of the following types of organizations sells goods to the general public?

Accepted Answer

A)  Service companies
B)  Manufacturing firms
C)  Merchandising companies
D)  RetailersE) A) and C)
F) A) and B)

Question 19

A direct cost is one that:

Accepted Answer

A)  involves an actual outlay of cash for a specific cost object.
B)  can be traced to a specific cost object.
C)  cannot be traced to a specific cost object.
D)  is not worth the effort of tracing to a specific cost object.E) C) and D)
F) A) and D)

Question 20

Variable costs are always direct costs.

Accepted Answer

A) True 
 B)False

Exam 1: Introduction to Managerial Accounting

Which of the following is an indirect cost of manufacturing a table made of wood and glass for a firm that manufactures furniture?

Correct AnswerverifiedShow Answer

Analytics provides meaningful patterns and insights from data useful for all of the following except:

Correct AnswerverifiedShow Answer

Which of the following changes introduced by the Sarbanes-Oxley Act is not one intended to reduce opportunities for error and fraud?

Correct AnswerverifiedShow Answer

The term "Big data" refers to the volume,velocity and veracity of data.

Correct AnswerverifiedShow Answer

All manufacturing costs are treated as product costs.

Correct AnswerverifiedShow Answer

Managerial accounting,as compared to financial accounting,is primarily intended to facilitate:

Correct AnswerverifiedShow Answer

Financial accounting information is generally used exclusively by internal parties such as managers.

Correct AnswerverifiedShow Answer

For a cost to be relevant,it must:

Correct AnswerverifiedShow Answer

A direct cost is one that:

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Variable costs are always direct costs.

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Costs that can be traced to a specific cost object are:

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GAAP reporting rules require that all manufacturing costs be treated as:

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Indirect costs are:

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Which of the following statements is correct?

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

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The requirement of the Sarbanes-Oxley Act that requires management to issue a report on internal controls places responsibility for the accuracy of the reporting system on:

Correct AnswerverifiedShow Answer

Recommending a course of action based upon patterns and insights from data is referred to as:

Correct AnswerverifiedShow Answer

Which of the following types of organizations sells goods to the general public?

Correct AnswerverifiedShow Answer

Whether a cost is treated as direct or indirect depends on whether tracing the cost is both possible and feasible.

Correct AnswerverifiedShow Answer

"Ethics" refers to all of the following except:

Correct AnswerverifiedShow Answer

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