All of the following are examples of managerial accounting informationexcept:

P & L statements by store segments.

budget versus actual reports.

balance sheet prepared in accordance with GAAP.

monthly P & L statements showing percentage changes in revenues, expenses, and profits.

Question 2

2/ 2pts

When comparing the characteristics of financial and managerial accounting, which of the following is a focus of managerial accounting?

Presenting overall company information in accordance with GAAP.

Focusing on users outside the organization.

Making future projections for segments of a company.

Using performance measures that are primarily financial in nature.

Incorrect

Question 3

0/ 2pts

If you compare a GAAP financial statement to a managerial accounting report, the managerial report is more likely to:

view the entire company as the reporting entity.

focus on the operations of the last accounting period.

focus on decision makers outside the company.

present accounting details at the product level.

Question 4

2/ 2pts

All of the following are things you can do when faced with any ethical dilemma as a managerial accountantexcept:

always contact the board of directors first.

discuss the issue with your immediate supervisor except when you think the supervisor may be involved.

initiate a confidential discussion with an IMA Ethics Counselor to clarify relevant ethical issues.

contact your attorney about your legal obligations and rights.

Question 5

2/ 2pts

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

presenting the matter to the audit committee, if a satisfactory resolution is not reached by all higher levels of management.

consulting an objective advisor such as an attorney.

bringing the matter to the attention of local news agencies.

following the policies of the organization for resolving ethical conflicts.

Question 6

2/ 2pts

All of the following are examples of firms who would use job costingexcept:

A paint manufacturing company

A computer repair business

An interior designing firm

A custom sailboat builder

Question 7

2/ 2pts

All of the following are examples of firms who would use process costingexcept:

A chemical refinery

An ice cream manufacturer

An electric power plant

An accounting firm

Incorrect

Question 8

0/ 2pts

Which of the following would be aproductcost?

Depreciation on manufacturing equipment

Commissions paid to sales personnel

Clerical support salaries in the Marketing Department

Supplies used in the Human Resource Department

Question 9

2/ 2pts

Costs of completed but unsold products would be found in which account?

Cost of Goods Sold

Raw Materials Inventory

Finished Goods Inventory

Work in Process Inventory

Question 10

2/ 2pts

When direct materials are placed into production, their costs are transferred to which account?

Cost of Goods Manufactured

Work in Process Inventory

Cost of Goods Sold

Finished Goods Inventory

Question 11

2/ 2pts

Which of the following may serve as a subsidiary ledger for Work in Process in a job cost system?

Balance sheet

Timesheet

Job cost sheet

Materials requisition

Question 12

2/ 2pts

If a credit balance exists in the Manufacturing Overhead account after overhead has been applied to the products, manufacturing overhead:

has been closed.

is underapplied.

is overapplied.

has been applied incorrectly.

Question 13

2/ 2pts

A predetermined overhead rate is calculated by which of the following equations?

Estimated Overhead Costs x Estimated Cost Driver Activity.

Estimated Overhead Costs + Estimated Cost Driver Activity.

Estimated Overhead Costs - Estimated Cost Driver Activity.

Estimated Overhead Costs / Estimated Cost Driver Activity.

Incorrect

Health Solutions, Inc. makes two types of health bars and is implementing an ABC system. Previously, all overhead totaling $81,000 had been applied on the basis of machine hours (9,000 total for the period; 5,000 for Nutty Bars and 4,000 for Raisin Bars). The company produces 22,500 units of Nutty Bars and 42,284 units of Raisin Bars. Additional data is as follows:

Cost Driver and

Estimated