Question 1

There is one standard form of budget used by all companies.

Accepted Answer

A) True 
 B)False

Question 2

The cost of completed goods transferred out of Work in Process Inventory to Finished Goods is called Cost of Goods Manufactured.

Accepted Answer

A) True 
 B)False

Question 3

Insurance costs for a production facility are best classified as selling costs.

Accepted Answer

A) True 
 B)False

Question 4

An internal auditor typically reports to the CFO and is responsible for confirming that the company has controls to ensure accurate financial data.

Accepted Answer

A) True 
 B)False

Question 5

All of the following are included in the overarching principles of the IMA's Ethical Professional Practice except:

Accepted Answer

A)  Objectivity.
B)  Fairness.
C)  Honesty.
D)  Professionalism.
E)  None of the above.

Question 6

Which of the following statements about computerized accounting systems is false?

Accepted Answer

A)  Even small accounting packages like QuickBooks have features used for managerial accounting purposes.
B)  The size of an organization and the information needs of an organization are important in determining which accounting software is appropriate.
C)  Enterprise Resource Planning (ERP) systems are appropriate for all companies.
D)  Accounting systems are typically used for internal and external reporting purposes.
E)  None of the above.

Question 7

The inventory cost flow equation is:

Accepted Answer

A)  Beginning balance + Transfers in - Ending balance = Transfers out
B)  Beginning balance + Transfers in + Ending balance = Transfers out
C)  Beginning balance - Transfers in - Ending balance = Transfers out
D)  Beginning balance - Transfers in + Ending balance = Transfers out
E)  None of the above.

Question 8

The three categories of manufacturing costs include direct materials,manufacturing overhead,and selling costs.

Accepted Answer

A) True 
 B)False

Question 9

Enterprise Resource Planning (ERP)systems are only used by large publicly held organizations.

Accepted Answer

A) True 
 B)False  False

Question 10

When a manufacturing company sells its products,Finished Goods is debited and Cost of Goods Sold is credited.

Accepted Answer

A) True 
 B)False

Question 11

All of the following statements about Enterprise Resource Planning systems (ERP) are true except:

Accepted Answer

A)  ERP systems are designed to record and share information across functional areas such as accounting and marketing.
B)  ERP systems are designed to record and share information across geographical areas such as a sales office in China and headquarters in New York.
C)  ERP system information is updated in weekly in batches.
D)  ERP system information can be organized in different formats to meet the needs of internal and external users.
E)  None of the above.

Question 12

Direct labor and direct materials are typically easily traceable to a product.

Accepted Answer

A) True 
 B)False

Question 13

Sampson Company had a Cost of Goods Sold of $730,000 and Cost of Goods Manufactured of $940,000 for the year ended December 31,2016.If the January 1,2016 balance in the Finished Goods Inventory account was $180,000,what was the December 31,2016,balance in Finished Goods Inventory?

Accepted Answer

A)  $1,850,000
B)  $1,120,000
C)  $520,000
D)  $390,000
E)  None of the above.

Question 14

Nonmanufacturing costs include direct labor and indirect labor.

Accepted Answer

A) True 
 B)False  False

Question 15

Nonmanufacturing costs consist of selling costs and indirect materials costs.

Accepted Answer

A) True 
 B)False

Question 16

All of the following are examples of nonfinancial measures that could be used by a restaurant,except:

Accepted Answer

A)  average time to serve customers (from order taking to food on the table) .
B)  percentage of favorable customer surveys.
C)  number of food orders returned to the kitchen each day.
D)  percent change in sales from the previous month.
E)  None of the above.

Question 17

The term "public company" refers to:

Accepted Answer

A)  a company whose shares of stock are publicly traded.
B)  a company with a treasurer and tax accountant.
C)  a company whose shares of stock are privately traded.
D)  a company with a small number of shareholders.
E)  None of the above. A

Question 18

Assume you are the managerial accountant for a publicly held corporation.Your supervisor is the controller,and he directs you to ignore a significant amount of obsolete inventory for a report you are preparing for the CFO.Your supervisor indicates that the inventory issue will just "mess up our projections because adjusting the inventory value downward will result in lower profits for the quarter.If it's obsolete now,it will be obsolete next quarter,and we have much more flexibility built into the budget next quarter."
Using the IMA's Statement of Ethical Professional Practice,what guidelines are violated and how should you handle this situation?

Accepted Answer

In this case,you would violate competenc...

Question 19

All of the following are steps outlined by the Institute of Management Accountants (IMA) for resolving ethical conflicts except:

Accepted Answer

A)  consulting an objective advisor such as an attorney.
B)  following the policies of the organization for resolving ethical conflicts.
C)  presenting the matter to the audit committee,if a satisfactory resolution is not reached by all higher levels of management.
D)  bringing the matter to the attention of local news agencies.
E)  None of the above.

Question 20

Product costs are always expensed in the period when they are incurred.

Accepted Answer

A) True 
 B)False

Exam 1: What Is Managerial Accounting

There is one standard form of budget used by all companies.

Correct Answer
verified

The cost of completed goods transferred out of Work in Process Inventory to Finished Goods is called Cost of Goods Manufactured.

Correct Answer
verified

Insurance costs for a production facility are best classified as selling costs.

Correct Answer
verified

An internal auditor typically reports to the CFO and is responsible for confirming that the company has controls to ensure accurate financial data.

Correct Answer
verified

All of the following are included in the overarching principles of the IMA's Ethical Professional Practice except:

Correct Answer
verified

Which of the following statements about computerized accounting systems is false?

Correct Answer
verified

The inventory cost flow equation is:

Correct Answer
verified

The three categories of manufacturing costs include direct materials,manufacturing overhead,and selling costs.

Correct Answer
verified

Enterprise Resource Planning (ERP)systems are only used by large publicly held organizations.

Correct Answer
verified
False

When a manufacturing company sells its products,Finished Goods is debited and Cost of Goods Sold is credited.

Correct Answer
verified

All of the following statements about Enterprise Resource Planning systems (ERP) are true except:

Correct Answer
verified

Direct labor and direct materials are typically easily traceable to a product.

Correct Answer
verified

Sampson Company had a Cost of Goods Sold of $730,000 and Cost of Goods Manufactured of $940,000 for the year ended December 31,2016.If the January 1,2016 balance in the Finished Goods Inventory account was $180,000,what was the December 31,2016,balance in Finished Goods Inventory?

Correct Answer
verified

Nonmanufacturing costs include direct labor and indirect labor.

Correct Answer
verified
False

Nonmanufacturing costs consist of selling costs and indirect materials costs.

Correct Answer
verified

All of the following are examples of nonfinancial measures that could be used by a restaurant,except:

Correct Answer
verified

The term "public company" refers to:

Correct Answer
verified
A

Correct Answer
verified
In this case,you would violate competenc...
View Answer

All of the following are steps outlined by the Institute of Management Accountants (IMA) for resolving ethical conflicts except:

Correct Answer
verified

Product costs are always expensed in the period when they are incurred.

Correct Answer
verified

Exam 1: What Is Managerial Accounting

There is one standard form of budget used by all companies.

Correct AnswerverifiedShow Answer

The cost of completed goods transferred out of Work in Process Inventory to Finished Goods is called Cost of Goods Manufactured.

Correct AnswerverifiedShow Answer

Insurance costs for a production facility are best classified as selling costs.

Correct AnswerverifiedShow Answer

An internal auditor typically reports to the CFO and is responsible for confirming that the company has controls to ensure accurate financial data.

Correct AnswerverifiedShow Answer

All of the following are included in the overarching principles of the IMA's Ethical Professional Practice except:

Correct AnswerverifiedShow Answer

Which of the following statements about computerized accounting systems is false?

Correct AnswerverifiedShow Answer

The inventory cost flow equation is:

Correct AnswerverifiedShow Answer

The three categories of manufacturing costs include direct materials,manufacturing overhead,and selling costs.

Correct AnswerverifiedShow Answer

Enterprise Resource Planning (ERP)systems are only used by large publicly held organizations.

Correct AnswerverifiedFalse

When a manufacturing company sells its products,Finished Goods is debited and Cost of Goods Sold is credited.

Correct AnswerverifiedShow Answer

All of the following statements about Enterprise Resource Planning systems (ERP) are true except:

Correct AnswerverifiedShow Answer

Direct labor and direct materials are typically easily traceable to a product.

Correct AnswerverifiedShow Answer

Sampson Company had a Cost of Goods Sold of $730,000 and Cost of Goods Manufactured of $940,000 for the year ended December 31,2016.If the January 1,2016 balance in the Finished Goods Inventory account was $180,000,what was the December 31,2016,balance in Finished Goods Inventory?

Correct AnswerverifiedShow Answer

Nonmanufacturing costs include direct labor and indirect labor.

Correct AnswerverifiedFalse

Nonmanufacturing costs consist of selling costs and indirect materials costs.

Correct AnswerverifiedShow Answer

All of the following are examples of nonfinancial measures that could be used by a restaurant,except:

Correct AnswerverifiedShow Answer

The term "public company" refers to:

Correct AnswerverifiedA

Correct AnswerverifiedIn this case,you would violate competenc...View AnswerShow Answer

All of the following are steps outlined by the Institute of Management Accountants (IMA) for resolving ethical conflicts except:

Correct AnswerverifiedShow Answer

Product costs are always expensed in the period when they are incurred.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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False

Correct Answer
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Correct Answer
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Correct Answer
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A

Correct Answer
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In this case,you would violate competenc...
View Answer

Correct Answer
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Correct Answer
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