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Accounting Topic 1
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Questions in this quiz (60)
1The primary users of management accounting information are typically:
- APoliticians, Bankers, and the IRS
- BShareholders and others who can use it to sue the corporation and get rich
- CManagers within the organization
- Dall stakeholders of the organization
- Eall of the above
2The Management Accountants' Ethics code states that when faced with significant ethical issues, management accountants should first:
- Adiscuss such problems with the President of the organization except when it appears that the President is involved.
- Bclarify relevant concepts by confidential discussion with an objective advisor to obtain an understanding of possible courses of action.
- Cfollow the established policies of the organization bearing on the resolution of such conflict.
- Dsubmit and informative memorandum describing the ethical issue to an appropriate representative of the organization and resign if no action is taken as a result of the memorandum
3Managerial accounting:
- Ahas its primary emphasis on the future
- Bis required by regulatory bodies such as SEC
- Cfocuses on the organization as a whole, rather than on the organization's segments.
- Dall the above.
4The three basic elements of manufacturing cost are:
- Acost of goods manufactured
- Bcost of goods sold
- Cwork in process
- Dmanufacturing overhead
- Edirect material
- Fdirect labor
5Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?
- AProduct cost
- Bmanufacturing overhead
- Cperiod cost
- Dadministrative cost
6Cost of goods manufactured will usually include
- Aonly costs incurred during the current period
- Bonly direct labor and direct materials costs
- Csome costs incurred during the prior period as well as costs incurred during the current period
- Dsome period costs as well as some product costs
7which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet?
- Aa cost of the hamburger patty in the burger they ordered
- Bthe wages of the employee who takes the customer's order
- Cthe cost of heating and lighting the kitchen
- Dthe salary of the outlet's manager
8The cost of goods sold in a merchandising company typically would be classified as a
- Afixed cost
- Bvariable cost
- Cstep-variable cost
- Dmixed cost
9The contribution approach to the income statement:
- Aorganizes costs on a functional basis
- Bis useful to managers in planning and decision making
- Cshows a contribution margin rather than a net operating income figure at the bottom of the statement
- Dcan be used only by manufacturing companies
10On a cost-volume-profit graph, the break-even point is located
- Aat the origin
- Bwhere the total revenue line intersects the volume axis
- Cwhere the total expenses line intersects the dollars axis
- Dwhere the total revenue
11Which of the following is true regarding the contribution margin ratio of a single product company?
- Aas fixed expenses decrease, the contribution margin ratio increases
- Bthe contribution margin ratio multiplied by the variable expense per unit equal the contribution margin per unit
- Cif sales increase, the dollar increase in net operating income can be computed by multiplying the contribution margin ratio by the dollar increase in sales
- Dthe contribution margin ratio increases as the number of units sold increases
12a company increased the selling price for its product from $5 to $6 per unit when total fixed expenses increased from $100,000 to $200,000 and variable expense per unit remained unchanged. How would these changes affect the breakeven point?
- Athe break-even point in units would decrease
- Bthe break-even point in units would increase
- Cthe break-even point in units would remain unchanged
- Dthe effect cannot be determined from the information given
13Financial accounting reports are prepared for external parties, whereas managerial accounting reports are prepared for internal users.
- ATrue
- BFalse
14Financial accounting is more focused on precision when making reports. Managerial accounting provides decision makers with good estimates ASAP and precise data later.
- ATrue
- BFalse
15Managerial accounting focuses on the company as a whole, financial accounting focuses on segment reports.
- ATrue
- BFalse
16Financial accounting must follow GAAP and IRS guidelines. Managerial accounting doesn't have externally imposed rules.
- ATrue
- BFalse
17Managerial accounting is mandatory while financial accounting is optional.
- ATrue
- BFalse
18What are the 3 activities that managerial accounting helps managers carry out?
- Aplanning
- Bfinancing
- Ccontrolling
- Ddecision making
- Ehiring
19What does the planning aspect of managerial accounting include?
- Aestablishing goals and specifying how to achieve them (includes budgeting)
- Bsetting a structure for the company
- Cgathering feedback to make new plan for running the company
- Dplanning is not relevant to managerial accounting
20What is involved in the control aspect of managerial accounting
- Acontrolling is not relevant
- Bit involves gathering feedback to ensure that plans are being followed. (involves performance reports that compare budgeting to actual results)
- Cinvolves making budgets to follow
- Dinvolves being a tyrannical boss.
21What 3 questions does managerial decisions making revolve around?
- AWho are we?
- BWhat should we be selling?
- CWho should we be serving?
- DWhat is our budget?
- EHow should we execute?
- FWhat purpose do we serve?
22What is the IMA
- AInternational Management Association
- BInstitue of Managerial Accounting
- CInstitue of Management Accountants
- DInternational Money Association
23What 2 things does the IMA's Statement of Ethical Professional Practice offer guidelines for?
- AEthical Behavior
- BHow to be a managerial accountant
- CRules of managerial accounting
- DResolution for an ethical conflict.
24What are the 4 categories of guidelines for Ethical Behavior as defined by the IMA?
- ACompetence
- BConfidentiality
- CIntegrity
- DCredibility
- ECommunication
- FRespectfulness
25Which of the following does not fall under the category of Competency in IMA's guidelines for Ethical Behavior?
- ARecognize and communicate professional limitations that preclude responsible judgment.
- BFollow applicable laws, regulations, and standards.
- CEnsure that subordinates do not disclose confidential information.
- DMaintain professional competence.
- EProvide accurate, clear, concise, and timely decision support information.
26Which of the following does not fall under the category of Confidentiality in IMA's guidelines for Ethical Behavior?
- ADo not disclose confidential information unless legally obligated to do so.
- BEnsure that subordinates do not disclose confidential information.
- CRefrain from conduct that would prejudice carrying out duties ethically.
- DDo not use confidential information for unethical or illegal advantage.
27Which of the following does not fall under the category of Integrity in IMA's guidelines for Ethical Behavior?
- ACommunicate information fairly and objectively.
- BMitigate conflicts of interest and advise others of potential conflicts.
- CAbstain from activities that might discredit the profession.
- DRefrain from conduct that would prejudice carrying out duties ethically.
28Which of the following does not fall under the category of Credibility in IMA's guidelines for Ethical Behavior?
- ACommunicate information fairly and objectively.
- BDo not disclose confidential information unless legally obligated to do so.
- CDisclose all relevant information that could influence a user’s understanding of reports and recommendations.
- DDisclose delays or deficiencies in information timeliness, processing, or internal controls.
29Contact with levels above the immediate supervisor should only be initiated with the supervisor's knowledge, assuming they are not involved.
- ATrue
- BFalse
30If your immediate supervisor is the CEO who should you consider going to?
- ABoard of directors/audit committee
- BYou should just go to the CEO
- COwner of Company
- DGovernment
31If your superior is involved should you just let go of the conflict
- ATrue
- BFalse
32An example of a direct material is:
- ACleaning supplies for manufacturing machines
- BGlue for parts
- CRadio in a car
- DOil for car engine
33An example of Direct Labor would be wages paid to
- AMaintenance workers
- BSecurity guards
- CAssembly workers
- DExecutive workers
34What two things makeup Manufacturing Overhead?
- ADirect Labor
- BIndirect Labor
- CIndirect costs
- DIndirect materials
35What is considered to be an indirect material
- ACleaning supplies used in manufacturing plants
- BCar radio
- CCar Metal
- DProcessing Chip in a computer
36What is an example of Indirect Labor (costs)
- AAssembly line workers
- BJanitors
- CExecutive workers
37What are the 2 non manufacturing costs
- ASelling Costs
- BAdministrative Costs
- CDirect Labor Costs
- DMaterials Costs
- ECosts for janitors
38Which of the following is not a selling cost?
- AAdvertising
- BShipping
- CSales
- DCost of finished goods warehouses
- ECost of packaging an item
39Which of the following is not an Administrative Cost?
- AExecutive compensation
- BSalaries for plant workers
- CSecretarial costs
- DPR costs
40Which is NOT a Product Cost?
- ADirect materials
- Bdirect labor
- Cselling costs
- Dmanufacturing overhead
41Which is NOT a period cost?
- Aselling costs
- Blabor costs
- Cadministrative costs
42Product costs are recognized as expenses when the products are sold
- ATrue
- BFalse
43Period costs are expensed on the income statement
- ATrue
- BFalse
44When are period costs "incurred"?
- AWhen employees earn them
- BWhen employees are paid
45Which of the following costs would be considered a period rather than a product cost in a manufacturing company?
- AManufacturing equipment depreciation
- BProperty taxes on corporate headquarters
- CDirect materials costs
- DElectrical costs to light the production facility
- ESales commissions
46What two things make up a prime cost?
- ADirect materials
- BManufacturing overhead
- CIndirect labor
- DIndirect Materials
- EDirect Labor
47What two things make up conversion costs?
- ADirect Materials
- BManufacturing Over
- CIndirect Labor
- DIndirect Material
- EDirect Material
48Variable costs vary in direct proportion to activity
- ATrue
- BFalse
49Variable costs per unit do not remain constant as activity changes
- ATrue
- BFalse
50As the level of the activity base increases, the total variable cost
- Adecreases proportionately
- Bincreases proportionately
51When activated rises, the fixed costs per unit,
- Adecreases
- Bincreases
52Committed Fixed Costs can be altered in the short-term.
- ATrue
- BFalse
53Discretionary costs are long term.
- ATrue
- BFalse
54Which of the following costs would be variable with respect to the number of cones sold at a Baskins and Robbins shop?
- AThe cost of lighting the store
- BThe wages of the store manager
- CThe cost of ice cream
- DThe cost of napkins for customers
55Y=a+bX is the equation for:
- AFixed Costs
- BVariable Costs
- CMixed Costs
- DTotal Costs
56In the equation Y=a+bX, Y=
- Atotal mixed costs
- Btotal fixed costs (vertical intercept)
- Ctotal variable costs per unit of activity (slope)
- Dlevel of activity
57In the equation Y=a+bX, a=
- Atotal mixed costs
- Btotal variable costs per unit of activity(slope)
- Ctotal fixed costs (vertical intercept)
- Dlevel of activity
58In the equation Y=a+bX, b=
- Alevel of activity
- Btotal variable cost per unit of activity (slope)
- Ctotal mixed costs
- Dtotal fixed costs (vertical intercept)
59In the equation Y=a+bX, X=
- ATotal variable cost per unit (slope)
- Btotal fixed costs (vertical intercept)
- Ctotal mixed costs
- Dlevel of activity
60Gross margin=
- Asales-cogs
- Bcogs-sales
- Ccontribution margin-sales
- Dsales+cogs
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- Description
- 202 accounting Quiz on Accounting Topic 1, created by stevensae on 03/05/2015.
- Author
- stevensae
- Language
- English
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- 417
- History
- Created on 3 May 2015 · updated on 16 Aug 2017
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