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| 1.
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Which of the following is not true? |
| | A) | managerial accounting information is prepared for internal users |
| | B) | managerial accounting information is not required by various laws |
| | C) | there are specific standards of acceptability for managerial accounting |
| | D) | the structure of managerial accounting practice is relatively flexible |
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| 2.
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Which of the following are basic inventories for a manufacturer? |
| | A) | indirect materials, goods in process, and raw materials |
| | B) | finished goods, raw materials, and direct materials |
| | C) | raw materials, goods in process, and finished goods |
| | D) | raw materials, factory overhead, and direct labour |
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| 3.
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The three basic elements of the cost of a manufactured product are: |
| | A) | indirect materials, indirect labour, and manufacturing overhead |
| | B) | merchandise inventory, work in process, and finished goods inventory |
| | C) | direct materials, work in process, and finished goods inventory |
| | D) | direct materials, direct labour, and manufacturing overhead |
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| 4.
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Which of the following would not be an element of factory overhead? |
| | A) | salary of a marketing manager |
| | B) | amortization on the maintenance equipment |
| | C) | salary of the plant supervisor |
| | D) | property taxes on the plant buildings |
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| 5.
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A firm had beginning finished goods inventory of $20,000; its cost of goods manufactured was $75,000; its gross margin was $80,000; and its sales were $140,000. The ending finished goods inventory was: |
| | A) | $60,000 |
| | B) | $40,000 |
| | C) | $95,000 |
| | D) | $35,000 |
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| 6.
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A firm had beginning finished goods inventory of $15,000; ending finished goods inventory of $20,000; and its cost of goods sold was $80,000. The cost of goods manufactured was: |
| | A) | $80,000 |
| | B) | $85,000 |
| | C) | $75,000 |
| | D) | $65,000 |
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| 7.
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A firm had $200,000 in sales; $120,000 in goods available for sale; ending finished goods inventory of $20,000; and selling and administrative expenses of $55,000. Which of the following is true? |
| | A) | net income was 25.0% of sales |
| | B) | the cost of goods sold was $140,000 |
| | C) | the gross profit was $80,000 |
| | D) | the beginning finished goods inventory is not determinable |
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| 8.
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A cost which changes in proportion to changes in volume of activity is called a: |
| | A) | fixed cost |
| | B) | controllable cost |
| | C) | variable cost |
| | D) | opportunity cost |
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| 9.
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A 'direct' cost is a cost that is classified by: |
| | A) | behaviour |
| | B) | traceability |
| | C) | controllability |
| | D) | relevance |
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| 10.
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A 'sunk' cost is a cost that is classified by: |
| | A) | behaviour |
| | B) | traceability |
| | C) | controllability |
| | D) | relevance |
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| 11.
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A 'product' cost is a cost that is classified by: |
| | A) | behaviour |
| | B) | function |
| | C) | controllability |
| | D) | relevance |
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| 12.
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Which of the following costs is not capitalized as inventory? |
| | A) | costs of delivering finished goods |
| | B) | factory (manufacturing) overhead |
| | C) | insurance of factory building and equipment |
| | D) | factory amortization |
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| 13.
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Which of the following is a period cost? |
| | A) | direct materials |
| | B) | indirect materials |
| | C) | factory utilities |
| | D) | administrative expenses |
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| 14.
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A management concept under which all managers and employees at all stages of company operations strive toward higher standards and a reduced number of defective units is called: |
| | A) | Continuous Improvement |
| | B) | Total Quality Management (TQM) |
| | C) | Theory of Constraints (TOC) |
| | D) | Total Quality Control (TQC) |
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| 15.
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The manufacturing statement is divided into four parts. Which of the following parts is not included in the manufacturing statement? |
| | A) | Direct materials |
| | B) | Indirect Materials |
| | C) | Direct Labour |
| | D) | Factory overhead costs. |
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| 16.
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Which of the following is not a characteristic of managerial accounting? |
| | A) | It emphasizes planning implementation, and control. |
| | B) | It is under the rigid standards of GAAP. |
| | C) | It relies on predictions and estimates. |
| | D) | It reports both monetary and non-monetary information. |
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| 17.
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Amortization costs on equipment can be classified as the following costs EXCEPT? |
| | A) | Period costs |
| | B) | Product Costs (Factory Overhead) |
| | C) | Indirect costs |
| | D) | Sunk costs |
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| 18.
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Research and development costs on a new product are classified as? |
| | A) | Factory overhead costs |
| | B) | Sunk costs |
| | C) | Opportunity costs |
| | D) | Period costs (selling and administrative) |
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