Chose the right answer for the 15 multiple choices.

1. Strategic cost management describes cost management that: A. specifically focuses on strategic issues. B. has no focus on the organization. C. does not specifically focus on strategic issues. D. is not consistent with organizational goals. E. does not relate to ethical practices. 2. Managers must know how revenues and costs vary with changes in: A. profits. B. decisions. C. costs. D. revenues. E. output levels. 3. When 40,000 units are produced, fixed costs are $16 per unit. Therefore, when 80,000 units are produced, fixed costs will: A. remain at $16 per unit. B. total $640,000. C. total $540,000. D. decrease to $8 per unit. E. increase to $32 per unit. 4. Line management: A. is never responsible for achieving the goals of the organization. B. never have organizational goals to achieve. C. is directly responsible for achieving the goals of the organization. D. is also known as staff management. E. is not responsible for achieving the financial goals of the organization because that is the job of the CFO. 5. Which of the following is not true about the fivestep decision making process? A. Helps managers make decisions. B. Makes predictions about the future. C. Identifies the problems and uncertainties. D. Managers cannot evaluate performances or learn. E. Obtains information. 6. The cost object is: A. the cost incurred. B. used to describe the assignment of indirect costs to a particular cost object. C. a predicted, or forecasted, cost. D. anything for which a measurement of costs is desired. E. a collection of cost data in some organized way by means of a cost object. 7. ________ have a behavioral affect by motivating and rewarding employees for achieving organizational goals. A. Budgets B. Technologies C. Controls D. Distributions E. Costs 8. Managers make cost management decisions to increase the value of products and services they provide to customers and to achieve organizational goals. Which of the following is not an example of an effective cost management decision? A. The decision to implement new organizational processes. B. Decisions to use the information from accounting systems. C. Information and the accounting systems themselves. D.The decision to enter a new market. E. A decision to change the design of a product. 9. The Material Handler company reported the following information: Beginning inventory of direct materials, January 1, 2012 15000 Purchases of direct materials in 2012 70000 Ending inventory of direct materials, December 31, 2012 7000 Required: Compute the Total Cost of Direct Materials used in 2012 A. $78,000 B. $72,000 C. $64,000 D. $86,000 E. $82,000 10. Which of the following is not a way for a company to improve customer response time? A. Effective management accounting information. B. Faster delivery procedures. C. Decrease in response time to consumer requests. D. Produce the product quicker. E. An increase in capacity of bottleneck operations. 11. The general term used to identify the tracing and allocation of accumulated costs to a cost object is: A. cost accumulation. B. conversion costing. C. convertible costing. D. cost tracing. E. cost assignment. 12. Fixed and variable costs: A. are only defined for a given period of time and not for a specific activity. B. always change in the same proportion. C. are defined as variable or fixed for a specific activity for a given time period. D.are never useful to managers when they make cost decisions. E. are only defined for a specific activity and never for a given period of time. 13. Which of the following is not an ethical behavior of Practitioner's of Management Accounting and Financial Managers? A. Ensures that all employees understand that value is quickly destroyed by unethical behavior in other countries. B. Maintains an appropriate level of professional expertise by continually developing knowledge and skills. C .Permits the executives to accept bribes to award supply contracts to foreign firms. D .Performs professional duties in accordance with relevant laws, regulations, and technical standards. E. Provides decision support information and recommendations that are accurate, clear, concise, and timely. 14. Ms. Taylor works at an assembly plant that produces footballs. She earns $18.00 an hour for straighttime and $36 per hour when she works overtime. She reported that she worked 46 hours during the previous reporting period, which included 6 hours of overtime. Required: Compute the total compensation for the week; the amount of compensation that was reported as direct manufacturing labor; the amount of compensation that is reported as a manufacturing overhead cost. A. $942; $832; $116 B. $950; $860; $124 C. $900; $810; $80 D. $926; $822; $88 E. $936; $828; $108 15. Which of the following is normally included in direct materials inventory? A. Goods and products that have been completed and sold. B. Direct materials in stock and awaiting use in the manufacturing process. C. Goods fully completed but not yet sold. D. Products in their original form intended to be sold without changing their basic form. E. Goods partially worked on but not yet fully completed