Managerial Accounting Test 1

Which of the following statements best describes an indirect cost? a. An indirect cost is assigned to a cost object using allocation. b. An indirect cost can easily and accurately be traced to a cost object. c. It is not important to assign an indirect cost as it can be traced to a cost object. d. None of these statements are true.

a. An indirect cost is assigned to a cost object using allocation.

Product costs are expensed: a. when the product is sold. b. when the product unit cost is calculated. c. when the product is finished. d. All of these choices are correct.

a. when the product is sold.📈

Which of the following is an example of the management activity referred to as planning? a. Ensuring that the most competent candidates are recruited by a company b. Developing a strategy for disposing of hazardous waste c. Tracking the cost of employee absence d. All of these choices are correct.

b. Developing a strategy for disposing of hazardous waste

Which of the following items is not a period cost? a. Office supplies b. Direct materials c. Research and development d. Advertising cost

b. Direct materials🚿

Which of the following is true of managerial accounting? a. Managerial accounting provides historical information. b. Managerial accounting aims at providing information for controlling the organization's actions. c. Managerial accounting is subject to rules for external financial reporting. d. Managerial accounting is the provision of accounting information for a company's external users.

b. Managerial accounting aims at providing information for controlling the organization's actions.😏

Which of the following is not true of the method of least squares? a. The method involves minimization of the squared differences between actual observations and the line (cost function). b. The method uses only two points to develop the cost function. c. The method is also referred to as regression analysis. d. The method offers ways to assess the reliability of cost equations.

b. The method uses only two points to develop the cost function.

Which of the following is not an objective of managerial accounting? a. To provide information for evaluating and continuously improving an organization's actions b. To produce information for external users, including investors, creditors, customers, suppliers, and government agencies c. To provide information for planning an organization's action d. To provide information for effective decision-making by the management of a company

b. To produce information for external users, including investors, creditors, customers, suppliers, and government agencies

The standards of ethical conduct for managerial accountants include: a. confidentiality, confidence, integrity, and observance. b. competence, confidentiality, integrity, and credibility. c. pursuit of excellence, credibility, and immediacy. d. caring for others, intuition, and respect for others.

b. competence, confidentiality, integrity, and credibility

The detailed formulation of action to achieve a particular end is the management activity called: a. controlling. b. planning. c. decision making. d. All of these choices are correct.

b. planning.

The primary objective of managerial accounting is: a. to produce information for external users, including investors, creditors, customers, suppliers, and government agencies. b. to provide management with financial and nonfinancial information useful in planning, controlling, and decision-making. c. to produce financial information that must comply with various accounting standards. d. to provide the Internal Revenue Service with financial and non-financial information about the taxable income of an organization.

b. to provide management with financial and nonfinancial information useful in planning, controlling, and decision-making.

Which of the following statements is true of a variable cost? a. A variable cost in total remains constant regardless of the level of output. b. A variable cost is a cost that is not linked to a company's output. c. A variable cost in total changes in direct proportion to changes in output within the relevant range. d. A variable cost per unit changes in direct proportion to changes in output within the relevant range.

c. A variable cost in total changes in direct proportion to changes in output within the relevant range.‍♀️

Investigating production variances and adjusting the production process is an example of: a. planning. b. decision making. c. controlling. d. All of these choices are correct.

c. controlling.

Cost of advertising is an example of a _____. a. committed fixed cost b. variable cost c. discretionary fixed cost d. semi-variable cost

c. discretionary fixed cost🛎️

Manufacturing overhead includes: a. indirect labor. b. indirect materials. c. factory supplies. d. All of these choices are correct.

d. All of these choices are correct.

Variable costs within the relevant range: a. increase in total as output increases. b. stay constant on a per-unit basis as output changes. c. decrease in total as output decreases. d. All of these choices are correct.

d. All of these choices are correct.

Which of the following statements is true of financial accounting? a. Financial accounting is subject to externally imposed rules. b. Financial accounting is directed toward external users. c. Financial accounting is able to provide audited, objective financial information. d. All of these choices are correct.

d. All of these choices are correct.

The controller of an organization participates in: a. controlling. b. planning. c. decision making. d. All of these choices are correct.

d. All of these choices are correct🐢

Accountants that have a Certificate in Public Accounting (CPA): a. are the only accountants permitted to serve as external auditors. b. must pass a national examination and be licensed by the state in which they practice. c. may be held responsible to assure the reliability of a firm's financial statements. d. All of these statements are true.

d. All of these statements are true.

Which of the following statements is true of price? a. Price is the difference between gross margin and the cost of goods sold. b. Price is the difference between selling cost per unit and income per unit. c. Price is a dollar measure of the resources used to achieve a given benefit. d. Price must be greater than cost for a firm to earn income.

d. Price must be greater than cost for a firm to earn income.

what is fixed cost?

remains the same does not change

fixed cost= ?

INTERCEPT