Chapter 18 1) Which of the following is an objective of management accounting? A) to generate financial statements of a company for tax reporting B) to provide information to business managers to assist them in controlling their business C) to provide information to shareholders to assist them with their investment decisions D) to ensure that the reports produced for internal and external business purposes are GAAP compliant 2) Which of the following statements is true of management accounting? A) The primary users of management accounting are the external stakeholders of a company B) Management accounting information is used to help managers plan and control their operations. C) Management accounting information requires an external audit by an independent CPA D) Management accounting information must comply with Generally Accepted Accounting Principles. is a philosophy of continuous improvement of products and processes A) Just-in-time (JIT) management B) Enterprise resource planning (ERP) C) Supply chain management D) Total quality management (TQM) 4) Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled? A) Supply chain management B) Just-in-time (JIT) management C) Enterprise resource planning (ERP) D) Total quality management (TQM) 5) An enterprise resource planning system (ERP): A) is a cost management system in which a company produces products just in time to satisfy needs. B) requires the implementation of total quality management. C) integrates all worldwide functions, departments and data of a company into a single system. 5) An enterprise resource planning system (ERP): A) is a cost management system in which a company produces products just in time to satisfy needs. B) requires the implementation of total quality management. C) integrates all worldwide functions, departments and data of a company into a single system. D) cannot be implemented in service companies. 6) The whole sequence of activities that add value to a company's products and services is called: A) the value chain. B) the planning process. C) TOM production chairn. D) enterprise resource planning (ERP). 7) You did not understand what the term accrual meant and failed to accrue the interest due at the end of the year on the company's bonds. Which of the IMA standards here? A) Integrity B) Confidentiality C) Competence D) Objectivity appears to have been violated 8) Joshua is the accountant of Seria Inc. Seria has received a bulk order from an overseas client. As a result, the reported earnings of this year will be significantly higher than the estimates of financial analysts. Joshua tells this to one of his friends. Which of the IMA standards has Joshua violated? A) Objectivity B) Competence C) Confidentiality D) Technicality 9) The income statement of a service company will most likely include: A) salary expense. B) factory overhead. C) cost of goods sold. D) direct materials. 10) For a manufacturing company, which of the following is a period cost? A) Direct materials B) Office rent 9) The income statement of a service company will most likely include: A) salary expense. B) factoryo C) cost of goods sold. D) direct materials. 10) For a manufacturing company, which of the following is a period cost? A) Direct materials B) Office rent C) Wages expense of factory workers D) Indirect materials 11) Which of the following would appear as a line item on the income statements of both, a merchandiser and a manufacturer? A) Direct Labor B) Cost of Goods Manufactured C) Direct Materials D) Cost of Goods Sold 12) Period costs are the: A) current assets and liabilities reported on the balance sheet. B) costs that are incurred and expensed during the same accounting period. C) costs related to production of products the company purchases and sells. D) same as manufacturing overhead costs. 13) Manufacturing overhead is also referred to as: A) indirect manufacturing costs. B) direct costs. C) prime costs. D) period costs. 14) For a manufacturing firm, which of the following is a product cost? A) Salary of administrative staft B) Wages paid to factory janitor C) Commissions paid to sales staff D) Depreciation on corporate building 15) Fireox Company's selected cost data for 2015 are shown below: 15) Fireox Company's selected cost data for 2015 are shown below What is the total of manufacturing costs incurred by Fireox Company in 2015? A) $149,200 B) S158,300 C) $139,800 D) S117,100 16) Samson Inc. reported the following information for the year 2015 How much was the unit cost per service? A) $1.56 B) $3.20 C) $2.25 D) S3.81 17) Crabapples Inc. purchases and sells dry fruit boxes. The following information summarizes its operating activities for 2015 If Crabapples sold 5,000 boxes of dry fruits during the year, what is the cost per box of dry fruits? A) S72.28 B) S32.75 C) $10.55 D) $19.75 17) Crabapples Inc. purchases and sells dry fruit boxes. The following information summarizes its operating activities for 2015 If Crabapples sold 5,000 boxes of dry fruits during the year, what is the cost per box of dry fruits? A) $72.28 B) S32.75 C) $10.55 D) $19.75 18) Crystal Inc. is a merchandiser of stone ornaments. The company sold 15,000 units in 2015. The company has provided the following information: What is the cost per unit sold? A) $20.29 B) $15.00 C) $23.88 D) S12.25 19) Fuchsia Inc. provides automobile services in the local community. The company provides the following information for the month of March 2.450 Fuchsia provided services to 1,500 clients in the month of March and generated S20,500 as revenue. How much is the cost per service? A) $11.77 B) $5.18 C) $13.67 D) S10.63