1. Management accounting reports might include information about:

1. Management accounting reports might include information about: 

customer complaints.

net income for the year on budgeted income statement.

total assets on budgeted balance sheet.

All of the above are correct.

 

2. Which of the following types of information are used in management accounting?  

financial information

nonfinancial information

information focused on the long term

All of these are correct.

 

3. The person MOST likely to use management accounting information is a(n): 

banker evaluating a credit application

shareholder evaluating a stock investment

governmental taxing authority

assembly department supervisor

 

4. The person MOST likely to use ONLY financial accounting information is a: 

factory shift supervisor

vice president of operations

current shareholder

department manager

 

5. A weekly report comparing machine time used to available machine time is information MOST useful to:  

a front-line employee

the manager of operations

the chief executive officer

the accounting department

 

6. Product costs are expensed on the income statement when: 

raw materials for the product are purchased

raw materials are requisitioned for the product

the product completes the manufacturing process

the product is sold

 

7. The cost of inventory reported on the balance sheet may include the cost of all the following EXCEPT: 

advertising

wages of the plant supervisor

depreciation of the factory equipment

parts used in the manufacturing process

 

8. The plans of management are often expressed formally in: 

financial statements.

performance reports.

budgets.

ledgers.

 

9. For a manufacturing company, what type of position (line or staff) is each of the following? 

a. Manager of a Data Processing Department

b. Manager of a Production Department

 

a. Staff

b. Staff

 a. Staff

b. Line

 

a. Line

b. Staff a. Lineb. Line 

10. Which of the folloiwng is NOT one of the five steps in the lean thinking model discussed in the text? 

Continuously pursue perfection in the business process.

Identify value in specific products/services.

Implement an enterprise system.

Create a pull system that responds to customer orders.

 

11. The five step framework used to guide Six Sigma improvement efforts includes all of the following EXCEPT: 

Analyze.

Control.

Digitize.

Measure.

 

12. Which of the following is NOT one of the Institute of Management Accountants’ five Standards of Ethical Conduct?  

Competence

Confidentiality

Independence

Integrity

 

13. Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as:  

direct materials.

a period cost.

administrative expense.

manufacturing overhead.

 

14. All of the following are examples of product costs except:  

depreciation on the company’s retail outlets.

salary of the plant manager.

insurance on the factory equipment.

rental costs of the factory facility.

 

15. The following costs were incurred in July: 

Direct materials $35,000

Direct labor $13,000

Manufacturing overhead $15,000

Selling expense $14,000

Administrative expenses $30,000

Prime costs during the month totaled:

 

$48,000 

$28,000

$107,000

$63,000

 

16. In July direct labor was 40% of conversion cost. If the manufacturing overhead cost for the month was $34,000 and the direct materials cost was $23,000, the direct labor cost was: 

$22,667 

$15,333

$51,000

$34,500

 

17. The following data are for a recent period’s operations: 

Beginning finished goods inventory $150,475

Ending finished goods inventory $145,750

Sales $400,000

Gross margin $120,000

The cost of goods manufactured was:

 

$115,275

$284,725

$275,275 

$124,725