Answers only, no need for solution and explanation

Multiple choice part 1

Indicate if:

A: Both statements are True

B: Both statements are false

C: Only Statement I is True

D: Only Statement II is True

1.)_____

Statement I: A budget helps translate strategy into actions

Statement II: A budget aids in the coordination and communication among various business functions

2.)_____

Statement I: A strategy is a game plan that enables a company to attract customers by mimicking what successful competitors do.

Statement II: From a social responsibility standpoint, a company may decide against outsourcing if it would result in layoffs at its domestic manufacturing facility

3.)_____

Statement I: Managerial accounting places less emphasis on non-monetary data than financial accounting.

Statement II: The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance

4.)_____

Statement I: The balance sheet, income statement, and statement of cash flows are used for financial accounting, and also for management accounting.

Statement II: Management accounting is broader in scope than financial accounting.

5.)_____

Statement I: Financial accounting information includes both historical and estimated data.

Statement II: Financial accounting is an activity that helps managers determine costs of products and services, plan future activities, and compare actual to planned results.

6.)_____

Statement I: Inventory costs are synonymous with manufacturing overhead.

Statement II: Opportunity costs are potential benefits from one alternative and is synonymous with incremental costs.

7.)

Statement I: Not all manufacturing costs are inventoriable costs.

Statement II: Indirect costs may be included in conversion costs.

8.)

Statement I: The cost object may include a customer, geographic regions, and department or divisions of a firm.

Statement II: Indirect costs may be included in administrative and selling expenses.

9.)_____

Statement I: Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

Statement II: Planning is the process of monitoring operating results and comparing actual results with the expected results.

10.)_____

Statement I: Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

Statement II: Both financial and managerial accounting affect user's decisions and actions.

Multiple choice part 2

11.)_____

In the cost classification system used by manufacturing firms, the assembly supervisor's salary in a single-product company would be included in all of the following EXCEPT

a. Product cost.

b. Conversion cost.

c. Period cost.

d. Prime cost.

12.) _____

Wide-spread adherence is ethical standards in an advanced market economy tends to result in all of the following except

a. Higher quality goods and services.

b. Higher prices.

c. Greater variety of goods and services available for sale.

d. Safer products.

13._____

INDIRECT manufacturing costs

a. Can be traced to the product that created the costs.

b. May include both variable and fixed costs.

c. Generally include the cost of direct material and the cost of labor.

d. Can be easily identified with the cost object.

14. _____

Cost behavior refers to

a. Whether a particular expense has been ethically incurred.

b. Whether a cost is incurred in manufacturing, merchandising, or service company.

c. Classifying costs as either inventoriable or period costs.

d. How costs react to a change in the level of activity.

15. _____

Lucas Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plants. They are:

Cost object 1: physical buildings and equipment

Cost object 2: use of buildings and equipment

Cost object 3: availability and use of manufacturing labor

Which of the following objects should be included in COST OBJECT 1?

a. Property taxes

b. Property insurance

c. Depreciation on buildings and equipment

d. Utilities

16. _____

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT

a. provide objective measures of past operations and subjective estimates about future decisions.

b. be provided at any time management needs information.

c. be prepared in accordance with generally accepted accounting principles.

d. be prepared to report information for any unit of the business to support decision making.

17. _____

Lucas Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plants. They are:

Cost object 1: physical buildings and equipment

Cost object 2: use of buildings and equipment

Cost object 3: availability and use of manufacturing labor

Which of the following objects should be included in COST OBJECT 2?

a. Property taxes

b. Property insurance

c. Depreciation on buildings and equipment

d. Utilities

18. _____

Which statement is TRUE?

a. All variable costs are direct costs.

b. All fixed costs are indirect costs.

c. All direct costs are variable costs.

d. A direct cost of one cost object can be an indirect cost of another cost object.

19. _____

Period costs

a. should be treated as an indirect cost rather than as a direct manufacturing cost.

b. include the cost of selling, delivering, and after-sales support for customers.

c. seldom influence financial success or failure.

d. include only fixed costs.

20._____

In the cost classification system used by manufacturing firms, total manufacturing costs would equal all of the following EXCEPT

a. direct materials costs and conversion costs

b. prime costs and manufacturing overhead costs

c. direct materials costs, direct manufacturing labor costs, and manufacturing overhead costs

d. indirect materials costs, indirect manufacturing labor costs, and manufacturing overhead costs.

21. _____

Which of the following statements is FALSE?

a. Management accountants must analyze and anticipate the reactions of individuals to the design and introduction of new measurements and systems.

b. Accounting methods for internal reporting purposes are specified by Generally Accepted Accounting Principles (GAAP).

c. The Standards of Ethical Conduct for management accountants include concepts related to competence, confidentiality, integrity, and credibility.

d. A cost concept used for external reporting purposes may not be appropriate for internal, routine reporting to managers.

22._____

Inventoriable costs are expensed on the income statement

a. when the products are sold.

b. not at any particular time, it varies.

c. after the products are manufactured.

d. when direct materials for the product are purchased.

23. _____

Costs that are expensed when incurred are called

a. period costs.

b. inventoriable costs.

c. product costs.

d. direct costs.

24._____

Classifying a cost as either direct or indirect depends upon

a. whether the cost is expensed in the period in which it is incurred.

b. whether an expenditure is avoidable or not in the future.

c. whether the cost can be easily identified with the cost object.

d. the behavior of the cost in response to volume changes.

25._____

Lucas Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plants. They are:

Cost object 1: physical buildings and equipment

Cost object 2: use of buildings and equipment

Cost object 3: availability and use of manufacturing labor

Which of the following objects should be included in COST OBJECT 1&2?

a. Property taxes

b. Property insurance

c. Depreciation on buildings and equipment

d. Utilities

26._____

Which of the following statements is FALSE?

a. Product costs and inventoriable costs are interchangeable terms.

b. Product costs refer to all costs incurred along the value chain for pricing decisions.

c. Inventoriable costs are a special case of period costs.

d. Inventoriable costs are important for GAAP.