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| 1 | |
A major difference between Financial Accounting and Managerial Accounting relates to differences in the users. Related to Smith Manufacturing Company, which of the following best describes a user of Managerial Accounting Information? |
| | A) | Credit Manager of a vendor for Smith Manufacturing |
| | B) | Purchasing Manager for Smith Manufacturing |
| | C) | Bank Manager reviewing a loan application from Smith Manufacturing |
| | D) | IRS Divisional Manager reviewing the tax return of Smith Manufacturing |
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| 2 | |
When comparing managerial accounting information with financial accounting information it is expected that managerial accounting information would |
| | A) | be based upon GAAP. |
| | B) | emphasize information on the company as a whole. |
| | C) | present estimates of future financial operations. |
| | D) | include an analysis of historical cost. |
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| 3 | |
A Balance Sheet account, which has significant differences between Managerial and Financial Accounting, involves the valuation of: |
| | A) | Equipment |
| | B) | Inventory |
| | C) | Accounts Payable |
| | D) | Contributed Capital |
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| 4 | |
Which of the following is not considered to be a classification of product costs? |
| | A) | Cost of wood used in making a table top. |
| | B) | Cost of labor to assemble a table. |
| | C) | Cost of Table Company President's salary. |
| | D) | Cost of electricity to operate machinery used to sand wood to make a table. |
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| 5 | |
Examples of overhead costs related to producing tables would not include: |
| | A) | Production Supervisor |
| | B) | Nails |
| | C) | Wood tabletop |
| | D) | Depreciation of forklift |
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| 6 | |
Use the following information to answer the question:- Acquired $30,000 of Capital from owners.
- Paid $10,000 for all material used in starting and completing 50 products this period.
- Paid $6,000 for administrative salaries.
- Paid $8,000 for wages of production workers.
- Depreciation of office furniture $2,500.
- Depreciation of manufacturing equipment $3,500.
- Collected $28,000 in cash for all sales made during the period.
Product Costs for the period were? |
| | A) | $ 30,000 |
| | B) | $ 24,500 |
| | C) | $ 24,000 |
| | D) | $ 21,500 |
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| 7 | |
Use the following information to answer the question:- Acquired $30,000 of Capital from owners.
- Paid $10,000 for all material used in starting and completing 50 products this period.
- Paid $6,000 for administrative salaries.
- Paid $8,000 for wages of production workers.
- Depreciation of office furniture $2,500.
- Depreciation of manufacturing equipment $3,500.
- Collected $28,000 in cash for all sales made during the period.
If 50 units were completed and 5 units were in ending inventory, what is the cost of Ending Inventory? |
| | A) | $ 28,000 |
| | B) | $ 21,500 |
| | C) | $ 19,350 |
| | D) | $ 2,150 |
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| 8 | |
Use the following information to answer the question:- Acquired $30,000 of Capital from owners.
- Paid $10,000 for all material used in starting and completing 50 products this period.
- Paid $6,000 for administrative salaries.
- Paid $8,000 for wages of production workers.
- Depreciation of office furniture $2,500.
- Depreciation of manufacturing equipment $3,500.
- Collected $28,000 in cash for all sales made during the period.
What was Gross Margin for the period? |
| | A) | $ 2,150 |
| | B) | $ 8,650 |
| | C) | $ 28,000 |
| | D) | $ 30,000 |
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| 9 | |
Use the following information to answer the question:- Acquired $30,000 of Capital from owners.
- Paid $10,000 for all material used in starting and completing 50 products this period.
- Paid $6,000 for administrative salaries.
- Paid $8,000 for wages of production workers.
- Depreciation of office furniture $2,500.
- Depreciation of manufacturing equipment $3,500.
- Collected $28,000 in cash for all sales made during the period.
How much is Cash Flow from Operating Activities? |
| | A) | $ 58,000 inflow |
| | B) | $ 28,000 inflow |
| | C) | $ 4,000 inflow |
| | D) | ($ 3,000) outflow |
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| 10 | |
Johnson Manufacturing paid $5,000 for materials, $4,000 for production labor, $3,500 depreciation of manufacturing equipment, $2,500 depreciation of office furniture, and $5,000 for sales salaries. What is the average cost per unit to produce 50 units? |
| | A) | $400 |
| | B) | $350 |
| | C) | $300 |
| | D) | $250 |
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| 11 | |
Of the following cost which is most likely not assigned to the cost of the product through cost allocation: |
| | A) | Indirect Material |
| | B) | Indirect Labor |
| | C) | Direct Labor |
| | D) | Depreciation |
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| 12 | |
Standards of Ethical conduct for management accountants include all of the following except: |
| | A) | Competence |
| | B) | Confidentiality |
| | C) | Integrity |
| | D) | Independence |
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| 13 | |
A key aspect in avoiding unethical or illegal conduct is awareness of the factors common in past cases. The common factors involved with such behavior includes all of the following except: |
| | A) | The existence of a strong Internal Control Environment. |
| | B) | The existence of a Secret Problem. |
| | C) | The presence of an opportunity. |
| | D) | The capacity for rationalization. |
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| 14 | |
The best example of an upstream cost is: |
| | A) | advertising |
| | B) | research and development |
| | C) | sales commissions |
| | D) | bad debts |
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| 15 | |
All of the following are true except: |
| | A) | Managers of all companies analyze costs to control material, labor, and overhead. |
| | B) | Managers of all companies analyze cost to properly value Inventory. |
| | C) | Managers of all companies need to improve quality. |
| | D) | Managers of all companies need to improve productivity. |
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| 16 | |
Financial statements can be manipulated |
| | A) | by expensing sales and administrative expenses immediately. |
| | B) | by charging the cost of manufacturing direct labor to inventory. |
| | C) | by charging the cost of direct labor to sales and administrative expense. |
| | D) | by charging electricity used to make the product to inventory. |
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| 17 | |
JIT Inventory is associated with all of the following except: |
| | A) | Reduced inventory holding costs. |
| | B) | Reduced product quality |
| | C) | Improved efficiency |
| | D) | Improved customer satisfaction |
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| 18 | |
A form of cost not measured by either a Financial Accounting System nor a Managerial Accounting System is a(n): |
| | A) | Product cost |
| | B) | Period cost |
| | C) | Opportunity cost |
| | D) | Indirect cost |
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| 19 | |
An example of an Opportunity Cost is: |
| | A) | financing costs |
| | B) | warehouse Rent |
| | C) | lost Inventory |
| | D) | lost Sales |
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| 20 | |
Due to an error in processing invoices some product costs were treated as period costs. Which of the following indicates how this error effects the financial statements, assuming production exceeded sales during the period. |
| | A) | Cash flows from operating activities are overstated. |
| | B) | Inventory is understated. |
| | C) | Net income is overstated. |
| | D) | Gross margin is overstated. |
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| 21 | |
Corporate governance |
| | A) | is the set of relationships that determine how a company is operated. |
| | B) | is specifically defined as the President and Vice-President of a company. |
| | C) | is the set of rules defined by the Board of Directors. |
| | D) | is dictated by state corporate rules. |
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| 22 | |
The Sarbanes-Oxley Act |
| | A) | prohibited CPA's from becoming management accountants. |
| | B) | created Generally Accepted Accounting Procedures (GAAP). |
| | C) | encourages the use of forecast statements in financial reporting. |
| | D) | addresses concerns over the usefulness of financial audits. |
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| 23 | |
The manager of TireWorks Manufacturing mistakenly classified a salesperson as a manufacturing employee. The employee was paid $30,000 during the year. As a result of this error |
| | A) | Net Income will be overstated by $30,000. |
| | B) | Total Assets will be overstated by $30,000. |
| | C) | Total cash flow will increase by $30,000. |
| | D) | Total Liabilities will increase by $30,000. |
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| 24 | |
A Just-in-time Inventory (JIT) philosophy is used to minimize inventory-holding costs by accepting: |
| | A) | Most-favored buying status |
| | B) | Most-favored customer status |
| | C) | Most-favored delivery status |
| | D) | Most favored payment status |
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| 25 | |
Identification of best practices is known as: |
| | A) | Activity Based Management |
| | B) | Value Based Assessment |
| | C) | Benchmarking |
| | D) | Value Chain Analysis |
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| 26 | |
Total Quality Management (TQM) includes all of the following except: |
| | A) | A systematic problem-solving philosophy that encourages front-line workers to achieve zero defects. |
| | B) | An organizational commitment to achieving customer satisfaction |
| | C) | A commitment to top quality regardless of the cost. |
| | D) | Continuous improvement through an ongoing process through which employees learn to eliminate waste. |
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| 27 | |
Benchmarking is associated with: |
| | A) | Identifying global competitors |
| | B) | Identifying the company's participation in a global economy |
| | C) | Identifying the practices used by competitors |
| | D) | Identifying the best practices used by world-class competitors. |
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| 28 | |
Activity Based Management is concerned with all of the following except: |
| | A) | Value Chain |
| | B) | Non-value Chain |
| | C) | Value-Added Activities |
| | D) | Non-Value Added Activities |
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