Quiz: Managerial Accounting MCQ Exam!

20 Questions | By Kelly61471 | Updated: Mar 22, 2022 | Attempts: 4413

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Quiz: Managerial Accounting MCQ Exam! - Quiz

Questions and Answers

1.

Which of the following is NOT true regarding ERP?
- 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.

Which type of business manager decides how much inventory should be kept on hand?
- A.
  
  Finance manager
- B.
  
  Operations/Production manager
- C.
  
  Marketing Manager
- D.
  
  Human resource manager
7.

Which type of business manager decides whether a company should borrow money or issue stock as a way to raise money?
- A.
  
  Human resource manager
- B.
  
  Operations/production manager
- C.
  
  Finance manager
- D.
  
  Marketing manager
8.

Which type of business manager would most likely be in charge of deciding on the type of benefits package an employee receives?
- 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.

Which of the following statements regarding plantwide overhead rates is TRUE.
- 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