Managerial Accounting
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Study guide for test # 1 in managerial accounting, chapters 1-3.
- 1.
- A.
It integrates traditional accounting information systems with other information systems.
- B.
It can be customized to provide specific and relevant information to different types of users.
- C.
It has evolved in the past few years to address the shortcomings of traditional accounting information systems.
- D.
It captures quantitative but not qualitative information.
- 2.ERP systems capture:
- A.
Only qualitative data
- B.
Only quantitative data
- C.
Both qualitative and quantitative data
- D.
The same information as a traditional accounting system
- 3.An example of QUALITATIVE data is:
- A.
Product cost
- B.
Customer satisfaction
- C.
Net income
- D.
Operating costs
- 4.Which of the following is NOT an example of an external user of accounting information
- A.
Potential and existing stockholders
- B.
Government taxing agencies
- C.
Potential and existing creditors
- D.
Management
- 5.________ involves the development of short-term objectives and goals.
- A.
Controlling activities
- B.
Strategic planning
- C.
Operational Planning
- D.
Financial Activities
- 6.
- A.
Finance manager
- B.
Operations/Production manager
- C.
Marketing Manager
- D.
Human resource manager
- 7.
- A.
Human resource manager
- B.
Operations/production manager
- C.
Finance manager
- D.
Marketing manager
- 8.
- A.
Finance manager
- B.
Operations/production manager
- C.
Human resource manager
- D.
Marketing manager
- 9.The primary role of a managerial accountant is to:
- A.
Enter data into the accounting system
- B.
Collect data
- C.
Analyze information and create knowledge
- D.
Prepare tax returns
- 10.Decision-makers should consider:
- A.
Only qualitative factors
- B.
Only quantitative factors
- C.
Both quantitative and qualitative factors
- D.
Sunk costs as well as quantitative and qualitative factors
- 11.When making a decision, which of the following should NOT be considered?
- A.
Relevant costs
- B.
Opportunity costs
- C.
Sunk costs
- D.
Risk
- 12.Under ideal conditions, companies operating in a _________ environment would reduce inventories of raw materials, work-in-process and finish goods to very low levels or even zero.
- A.
Service
- B.
Just-in-time
- C.
Traditional manufacturing
- D.
Merchandising
- 13.In general, costs incurred in the factory that do not qualify as either direct or indirect labor are called:
- A.
Manufacturing costs
- B.
Manufacturing overhead
- C.
Non-manufacturing costs
- D.
Selling and administrative costs
- 14.Which of the following types of employees would most likely have their wage classified as direct labor?
- A.
Factory maintenance worker
- B.
Factory supervisor
- C.
Managerial accountant
- D.
Assembly-line factory worker
- 15.Which of the following types of employees would most likely have their wage classified as indirect labor?
- A.
Factory supervisor
- B.
Managerial accountant
- C.
Salesperson
- D.
Machine operator
- 16.Which of the following typed of companies would LEAST likely have the following cost pattern? Raw Materials -> Work in process -> finished goods -> cost of goods sold
- A.
Tire manufacturer
- B.
Computer software manufacturer
- C.
Retailer/merchandiser
- D.
Construction company
- 17.When manufacturing costs are subtracted from gross margin, the result is called:
- A.
Cost of goods sold
- B.
Net income
- C.
Sales
- D.
Nonmanufacturing income
- 18.The key to allocating overhead costs is the determination of the _________
- A.
Overhead
- B.
Cost driver
- C.
Direct labor
- D.
Product cost
- 19.Which of the following would probably NOT be a cost driver in a manufacturing environment?
- A.
Machine hours
- B.
Direct labor hours
- C.
Direct labor cost
- D.
Indirect labor hours
- 20.
- A.
As the number of diverse products a company makes increases, the likleihood that a plantwide overhead rate will be accurate increases
- B.
Plantwide overhead rates must use machine hours as their cost driver
- C.
As the number of diverse products a company makes increases, the likelihood that a company will replace a plantwide overhead rate with a departmental overhead rate increases
- D.
Plantwide overhead rates are usually more costly to prepare than a departmental overhead rate
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