Question 1

Product costs include materials,labor,and selling and administrative costs.

Accepted Answer

A) True 
 B)False

Question 2

Upstream costs are classified as product costs and downstream costs are classified as period costs for financial reporting purposes.

Accepted Answer

A) True 
 B)False

Question 3

The Sarbanes Oxley Act of 2002:

Accepted Answer

A)   prohibits CPA's from becoming managerial accountants.
B)   created Generally Accepted Accounting principles (GAAP) .
C)   requires the CEO and CFO to defer responsibility for internal controls to external auditors.
D)   requires management to establish a whistleblower policy.E) None of the above
F) All of the above

Question 4

During its first year of operations,Silverman Company paid $14,000 for direct materials and $19,000 for production workers' wages.Lease payments and utilities on the production facilities amounted to $17,000 while general,selling,and administrative expenses totaled $8,000.The company produced 5,000 units and sold 3,000 units at a price of $15.00 a unit. What is the amount of gross margin for the first year?

Accepted Answer

A)   $15,000
B)   $24,000
C)   $20,000
D)   $45,000E) B) and D)
F) A) and B)

Question 5

What is a value chain? And what relationship is there between the value chain and activity-based management?

Accepted Answer

Answers will vary
The value chain is the...

Question 6

As a Certified Management Accountant,Derek is bound by the standards of ethical conduct issued by the Institute of Management Accountants.According to the standards,Derek has a responsibility to:

Accepted Answer

A)   inform subordinates that they should protect confidential information.
B)   ensure that financial accounting records are maintained as per the governing guidelines.
C)   monitor the activities of subordinates to assure that confidentiality is maintained.
D)   inform subordinates that they should protect confidential information and monitor the activities of subordinates to assure that confidentiality is maintained.E) A) and B)
F) All of the above

Question 7

Ashley Bradshaw is the manager of one department in a large store.In this capacity,which of the following kinds of information would she be interested in?

Accepted Answer

A)   Economic data
B)   Financial data
C)   Nonfinancial data
D)   Both financial data and nonfinancial dataE) B) and C)
F) A) and B)

Question 8

Which of the following statements concerning product costs versus general,selling,and administrative costs is

Accepted Answer

A)   Product costs incurred during the period will initially appear as inventory on the balance sheet.
B)   General,selling,and administrative costs are always expensed when paid.
C)   Product costs may be divided between the balance sheet and income statement.
D)   General,selling,and administrative costs never appear as inventory on the balance sheet.E) A) and B)
F) A) and C)

Question 9

Misclassifying a product cost as a period cost will usually cause the income statement to be incorrect,but the balance sheet will not be affected.

Accepted Answer

A) True 
 B)False

Question 10

As a Certified Management Accountant,Steven is bound by the Institute of Management Accountant's Standards of Ethical Conduct.Describe the actions Steven should take when faced with an ethical dilemma at work.

Accepted Answer

Answers will vary
Steven should first id...

Question 11

Which of the following best represents a characteristic of managerial accounting?

Accepted Answer

A)   Information is historically based and reported annually.
B)   Information is based on estimates and is bounded by relevance and timeliness.
C)   Information is regulated by the Securities and Exchange Commission.
D)   Information is characterized by reliability and objectivity.E) None of the above
F) B) and C)

Question 12

Average costs are used for internal decision-making,but actual costs are required for calculating cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 13

Select the incorrect statement regarding service companies.

Accepted Answer

A)   Because service companies do not carry inventory,it is impossible to determine product costs.
B)   Because the products of service companies are consumed immediately,there is no finished goods inventory on their balance sheets.
C)   Managers of service companies are expected to control costs,improve quality,and increase productivity just like managers of manufacturing companies.
D)   Material,labor,and overhead costs of service companies are treated as period costs.E) All of the above
F) A) and B)

Question 14

Which of the following costs should not be recorded as an expense?

Accepted Answer

A)   Insurance on factory building
B)   Sales commissions
C)   Product shipping costs
D)   Product advertisingE) A) and B)
F) All of the above

Question 15

Period costs are initially recorded in asset accounts and are later expensed in the period when the related units are sold.

Accepted Answer

A) True 
 B)False

Question 16

The sequence of activities through which an organization provides products to its customers is called a supply chain.

Accepted Answer

A) True 
 B)False

Question 17

Because management accountants prepare and analyze financial information used by company decision-makers,they are considered to be at the forefront of corporate governance.

Accepted Answer

A) True 
 B)False

Question 18

How do information needs of employees change moving up the organization chart?

Accepted Answer

Answers will vary
Lower-level employees ...

Question 19

Under the terms of the Sarbanes-Oxley Act,a company and its external auditor are required to report on the effectiveness of the company's system of internal controls.

Accepted Answer

A) True 
 B)False

Question 20

Transportation costs incurred to transfer products to customers are downstream costs.

Accepted Answer

A) True 
 B)False

Exam 1: Management Accounting and Corporate Governance

Average costs are used for internal decision-making,but actual costs are required for calculating cost of goods sold.

Correct Answer
verified

As a Certified Management Accountant,Derek is bound by the standards of ethical conduct issued by the Institute of Management Accountants.According to the standards,Derek has a responsibility to:

Correct Answer
verified

Under the terms of the Sarbanes-Oxley Act,a company and its external auditor are required to report on the effectiveness of the company's system of internal controls.

Correct Answer
verified

Misclassifying a product cost as a period cost will usually cause the income statement to be incorrect,but the balance sheet will not be affected.

Correct Answer
verified

As a Certified Management Accountant,Steven is bound by the Institute of Management Accountant's Standards of Ethical Conduct.Describe the actions Steven should take when faced with an ethical dilemma at work.

Correct Answer
verified
Answers will vary
Steven should first id...
View Answer

Which of the following best represents a characteristic of managerial accounting?

Correct Answer
verified

Select the incorrect statement regarding service companies.

Correct Answer
verified

Period costs are initially recorded in asset accounts and are later expensed in the period when the related units are sold.

Correct Answer
verified

Ashley Bradshaw is the manager of one department in a large store.In this capacity,which of the following kinds of information would she be interested in?

Correct Answer
verified

The Sarbanes Oxley Act of 2002:

Correct Answer
verified

Which of the following statements concerning product costs versus general,selling,and administrative costs is

Correct Answer
verified

Which of the following costs should not be recorded as an expense?

Correct Answer
verified

What is a value chain? And what relationship is there between the value chain and activity-based management?

Correct Answer
verified
Answers will vary
The value chain is the...
View Answer

Because management accountants prepare and analyze financial information used by company decision-makers,they are considered to be at the forefront of corporate governance.

Correct Answer
verified

Correct Answer
verified

The sequence of activities through which an organization provides products to its customers is called a supply chain.

Correct Answer
verified

Transportation costs incurred to transfer products to customers are downstream costs.

Correct Answer
verified

How do information needs of employees change moving up the organization chart?

Correct Answer
verified
Answers will vary
Lower-level employees ...
View Answer

Product costs include materials,labor,and selling and administrative costs.

Correct Answer
verified

Upstream costs are classified as product costs and downstream costs are classified as period costs for financial reporting purposes.

Correct Answer
verified

Exam 1: Management Accounting and Corporate Governance

Average costs are used for internal decision-making,but actual costs are required for calculating cost of goods sold.

Correct AnswerverifiedShow Answer

As a Certified Management Accountant,Derek is bound by the standards of ethical conduct issued by the Institute of Management Accountants.According to the standards,Derek has a responsibility to:

Correct AnswerverifiedShow Answer

Under the terms of the Sarbanes-Oxley Act,a company and its external auditor are required to report on the effectiveness of the company's system of internal controls.

Correct AnswerverifiedShow Answer

Misclassifying a product cost as a period cost will usually cause the income statement to be incorrect,but the balance sheet will not be affected.

Correct AnswerverifiedShow Answer

As a Certified Management Accountant,Steven is bound by the Institute of Management Accountant's Standards of Ethical Conduct.Describe the actions Steven should take when faced with an ethical dilemma at work.

Correct AnswerverifiedAnswers will varySteven should first id...View AnswerShow Answer

Which of the following best represents a characteristic of managerial accounting?

Correct AnswerverifiedShow Answer

Select the incorrect statement regarding service companies.

Correct AnswerverifiedShow Answer

Period costs are initially recorded in asset accounts and are later expensed in the period when the related units are sold.

Correct AnswerverifiedShow Answer

Ashley Bradshaw is the manager of one department in a large store.In this capacity,which of the following kinds of information would she be interested in?

Correct AnswerverifiedShow Answer

The Sarbanes Oxley Act of 2002:

Correct AnswerverifiedShow Answer

Which of the following statements concerning product costs versus general,selling,and administrative costs is

Correct AnswerverifiedShow Answer

Which of the following costs should not be recorded as an expense?

Correct AnswerverifiedShow Answer

What is a value chain? And what relationship is there between the value chain and activity-based management?

Correct AnswerverifiedAnswers will varyThe value chain is the...View AnswerShow Answer

Because management accountants prepare and analyze financial information used by company decision-makers,they are considered to be at the forefront of corporate governance.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The sequence of activities through which an organization provides products to its customers is called a supply chain.

Correct AnswerverifiedShow Answer

Transportation costs incurred to transfer products to customers are downstream costs.

Correct AnswerverifiedShow Answer

How do information needs of employees change moving up the organization chart?

Correct AnswerverifiedAnswers will varyLower-level employees ...View AnswerShow Answer

Product costs include materials,labor,and selling and administrative costs.

Correct AnswerverifiedShow Answer

Upstream costs are classified as product costs and downstream costs are classified as period costs for financial reporting purposes.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary
Steven should first id...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary
The value chain is the...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Answers will vary
Lower-level employees ...
View Answer

Correct Answer
verified

Correct Answer
verified