Final

Question 1

Managerial Accounting is primarily focused on:

• Providing creditors info on the status of their loans
• Providing investors with usefule info for valuing securities
• providing IRS with info to determine the amount of taxes owed
• Providing managers with relevant information to help acheive organizational goals

Answer 1

Providing managers with relevant information to help acheive organizational goals

Question 2

In order to be useful to managers, management accounting reports:

Answer 2

Should be prepared to meet the specific needs of decision makers

Question 3

Financial accounting information is least useful in providing:

Answer 3

Information for internal decision makers

Question 4

The 3 analysis that comprise strategic cost management include all except:

Answer 4

Ratio analysis

Question 5

Strategic position analysis is best defined as:

Answer 5

An organization’s basic way of competing to sell products and services

Question 6

A goal is best defined as:

Answer 6

a definable and measurable objective

Question 7

Which of the following is not one of the 3 strategic positions that Porter views as leading to business success?

Answer 7

All things to all people

Question 8

Product or service differentiation involves:

Answer 8

creating something that is perceived as unique and worth a premium price

Question 9

The process of selecting strategies to acheive goals is often referred to as:

Answer 9

Planning

Question 10

The process of making the organization into a well-ordered whole is referred to as:

Answer 10

Organizing

Question 11

The process of ensuring the results agree with plans is referred to as:

Answer 11

Controlling

Question 12

The act of delegating authority for implementing plans to other managers and employees can be viewed as an aspect of:

Answer 12

Organizing

Question 13

World-class companies must continuously struggle to improve performance in the dimensions of: Price/Cost, Service, Quality, All

Answer 13

All of the Above

Question 14

_____ are fundamental choices about the size and scope of operations and about technologies employed in delivering products or services to customers

Answer 14

Structural Cost Drivers

Question 15

This is an organizational cost driver for a discount department store chain:

Answer 15

Decision to rearrange merchandise within the store

Question 16

A decision to work closely with a limited number of suppliers for the purpose of ensuring that the proper materials are available at the optimal time is an example of:

Answer 16

Organizational Cost Driver

Question 17

_______ are specific units of work performed to serve customer needs that consume costly resources.

Answer 17

Activity Cost Drivers

Question 18

Examples of activity cost drivers include all of the following except:

Answer 18

Deciding how to arrange raw materials inventory within the warehouse

Question 19

Ethical behavior:

Answer 19

Is not guided by well-defined rules and is often subjective

Question 20

Ethics deal with: the propriety of a course of action, the fitness of a course of action, the moral quality of a course of action, all

Answer 20

All of the above

Question 21

T/F: Cost-volume-profit analysis is most useful for determining costs

Answer 21

False

Question 22

T/F: Fixed costs, variable costs and revenues are all included in profitablity analysis

Answer 22

True

Question 23

T/F: Cost-volume-analysis is not typically used to determine the break-even point

Answer 23

False

Question 24

T/F: Contribution margin is the difference between total revenue and total variable costs

Answer 24

True

Question 25

T/F: One of the basic assumptions underlying the cost-volume-analysis model is that the revenue curve is curvilinear.

Answer 25

False

Question 26

T/F: Functional income statements classify expenses based on business function and are typically found in corporate annual reports

Answer 26

True

Question 27

T/F: A cost-volume-profit graph includes lines for total revenues, total fixed cost, total variable cost and total profit

Answer 27

False

Question 28

T/F: If prices are assume to increase by 10%, the slope of the cost curve will increase by 10%, but there will be no changes in the cost curves

Answer 28

True

Question 29

T/F: The break-even point for a company with multiple products cannot be determined using a unit contribution margin calculation since there are multiple products each of which has a different unit contribution margin

Answer 29

False

Question 30

A basic assumption of the cost-volume-profit model is that:

Answer 30

All costs can be accuratley classified as either fixed or variable

Question 31

All of the following are assumptions used in cost-volume-profit analysis, except: all costs are classified as fixed or variable, the total cost function is linear, the total revenue function is linear, all

Answer 31

All of the above

Question 32

Which of the following inventories results in recording an expense when its asset account is reduced in the accounting system?

Answer 32

Finished goods inventory

Question 33

Partially completed goods that are in the process of being converted into a finish product are defined as:

Answer 33

Work-in-process inventories

Question 34

How is depreciation on the manufacturing building and equipment classified in financial reporting?

Answer 34

As part of the cost of the products produced

Question 35

When is the cost of manufacturing equipment recognized as an expense?

Answer 35

When finished goods inventory is sold

Question 36

Which of following costs are treated as part of the cost of product? Wages of plant security guards, insurance on the plant building and equipment, depreciation, all

Answer 36

All of the above

Question 37

For which of the following products would job order costing be least likely to be used?

Answer 37

Newsprint paper manufacturing

Question 38

For which of the following manufactured products would job costing be more appopriate than process costing?

Answer 38

Designer dresses sold to celebrities

Question 39

Which of the following tasks does not pertain to job-costing?

Answer 39

Computing equivalent units

Question 40

Which of the following results in an increase in work-in-process inventory?

Answer 40

Using direct manufacturing labor hours

Question 41

When finished goods are sold, there is an increase in which of the following accounts?

Answer 41

Cost of goods sold