Question 1

Managerial accounting focuses primarily on the performance of the company as a whole.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following types of labor costs will never flow through the balance sheet?

Accepted Answer

A)   Plant supervision
B)   Sales commissions
C)   Material handling
D)   Assembly laborE) None of the above
F) B) and D)

Question 3

Because management accountants prepare and analyze financial information used by company decision-makers, they are considered to be at the forefront of Statement of Ethical Professional Practice.

Accepted Answer

A) True 
 B)False

Question 4

Choose the answer that is not a distinguishing characteristic of financial accounting information.

Accepted Answer

A)   It is global information that reflects the performance of the whole company.
B)   It is focused primarily on the future.
C)   It is more concerned with financial data than physical or economic data.
D)   It is more highly regulated than managerial accounting information.E) A) and B)
F) C) and D)

Question 5

Which of the following costs should be recorded as an expense?

Accepted Answer

A)   Administrative employee salaries
B)   Depreciation of manufacturing equipment
C)   Insurance for the factory building
D)   All of these are expenses.E) C) and D)
F) A) and B)

Question 6

Select the incorrect statement regarding costs and expenses.

Accepted Answer

A)   Some costs are initially recorded as expenses while others are initially recorded as assets.
B)   Expenses are incurred when assets are used to generate revenue.
C)   Manufacturing-related costs are initially recorded as expenses.
D)   Non-manufacturing costs should be expensed in the period in which they are incurred.E) None of the above
F) A) and C)

Question 7

Levenworth Company incurs unnecessary costs each period because of the excess quantities of inventory maintained to meet unexpected customer demand. The costs of inventory financing, storage, supervision, and obsolescence could most likely be reduced by which of the following practices?

Accepted Answer

A)   Activity-based costing
B)   Just-in-time inventory
C)   Total quality management
D)   BenchmarkingE) A) and D)
F) B) and D)

Question 8

Ringgold Company had beginning finished goods of $36,000. During the period, the company produced goods that cost $150,000. If the ending balance in the Finished Goods Inventory account was $24,000, the amount of cost of goods sold was:

Accepted Answer

A)   $162,000.
B)   $150,000.
C)   $138,000.
D)   none of these.E) C) and D)
F) A) and D)

Question 9

Cost of goods sold must be determined prior to computing cost of goods manufactured.

Accepted Answer

A) True 
 B)False

Question 10

Identify the false statement regarding how product costs in a manufacturing company differ from product costs in a service or merchandising company.

Accepted Answer

A)   Both manufacturing companies and service companies incur costs for supplies.
B)   Manufacturing companies accumulate product costs in inventory accounts, while service companies do not.
C)   Products of service companies such as restaurants are consumed immediately.
D)   Most labor costs for merchandising companies are treated as product costs.E) A) and C)
F) All of the above

Question 11

Select the incorrect statement regarding upstream and downstream costs.

Accepted Answer

A)   Companies normally incur significant downstream costs.
B)   To be profitable, companies must recover the total cost of developing, producing, and delivering products.
C)   Pricing decisions must consider both upstream and downstream costs in addition to manufacturing costs.
D)   Upstream and downstream costs are reported as product costs on the income statement.E) A) and B)
F) A) and C)

Exam 10: An Introduction to Management Accounting

Select the incorrect statement regarding upstream and downstream costs.

Correct Answer
verified

Managerial accounting focuses primarily on the performance of the company as a whole.

Correct Answer
verified

Identify the false statement regarding how product costs in a manufacturing company differ from product costs in a service or merchandising company.

Correct Answer
verified

Levenworth Company incurs unnecessary costs each period because of the excess quantities of inventory maintained to meet unexpected customer demand. The costs of inventory financing, storage, supervision, and obsolescence could most likely be reduced by which of the following practices?

Correct Answer
verified

Ringgold Company had beginning finished goods of $36,000. During the period, the company produced goods that cost $150,000. If the ending balance in the Finished Goods Inventory account was $24,000, the amount of cost of goods sold was:

Correct Answer
verified

Select the incorrect statement regarding costs and expenses.

Correct Answer
verified

Because management accountants prepare and analyze financial information used by company decision-makers, they are considered to be at the forefront of Statement of Ethical Professional Practice.

Correct Answer
verified

Which of the following types of labor costs will never flow through the balance sheet?

Correct Answer
verified

Choose the answer that is not a distinguishing characteristic of financial accounting information.

Correct Answer
verified

Which of the following costs should be recorded as an expense?

Correct Answer
verified

Cost of goods sold must be determined prior to computing cost of goods manufactured.

Correct Answer
verified

Exam 10: An Introduction to Management Accounting

Select the incorrect statement regarding upstream and downstream costs.

Correct AnswerverifiedShow Answer

Managerial accounting focuses primarily on the performance of the company as a whole.

Correct AnswerverifiedShow Answer

Identify the false statement regarding how product costs in a manufacturing company differ from product costs in a service or merchandising company.

Correct AnswerverifiedShow Answer

Levenworth Company incurs unnecessary costs each period because of the excess quantities of inventory maintained to meet unexpected customer demand. The costs of inventory financing, storage, supervision, and obsolescence could most likely be reduced by which of the following practices?

Correct AnswerverifiedShow Answer

Ringgold Company had beginning finished goods of $36,000. During the period, the company produced goods that cost $150,000. If the ending balance in the Finished Goods Inventory account was $24,000, the amount of cost of goods sold was:

Correct AnswerverifiedShow Answer

Select the incorrect statement regarding costs and expenses.

Correct AnswerverifiedShow Answer

Because management accountants prepare and analyze financial information used by company decision-makers, they are considered to be at the forefront of Statement of Ethical Professional Practice.

Correct AnswerverifiedShow Answer

Which of the following types of labor costs will never flow through the balance sheet?

Correct AnswerverifiedShow Answer

Choose the answer that is not a distinguishing characteristic of financial accounting information.

Correct AnswerverifiedShow Answer

Which of the following costs should be recorded as an expense?

Correct AnswerverifiedShow Answer

Cost of goods sold must be determined prior to computing cost of goods manufactured.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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