Part A: Choose the best answer for Questions 1-25 and record the appropriate letter on the Answer Sheet on the last page. 1) Management accounting A) helps managers make decisions. B) is useful for external and internal users. C) creates technical reports that require external audit for verification. D) is the same as cost accounting. 2) Using product cost information to determine sales prices is an example of A) controlling, planning, and decision-making. B) directing, controlling, and planning. C) directing, planning, and decisionmaking. D) controlling, directing, and planning. 3) The budgetary control function may include evaluating the difference A) between current operating costs and last year's operating costs. B) between budgeted amounts and actual results. C) between the original budget and the final adjusted budget. D) between the historical cost and the current cost. 4) Who typically manages the daily operations of a company? A) Stockholders B) The controller C) The company's board of directors D) The CEO 5) Which of the following statements is true regarding the changing role of management accountants? A) Management accountants are no longer involved with recording transactions. B) Because of the increased emphasis on analyzing business operations, management accountants have become key organizational decision makers. C) The increasing scope of the regulatory environment has changed the focus of management accountants. D) Technology has changed the role of management accountants. 6) The "triple bottom line" focuses on what three factors that inuence a firm's ability to survive and thrive in the long run? A) People, places, things B) Profit, people, planet C) Profit, people, place D) Planet, profit, place 7) Which of the following describes a system in which suppliers deliver materials at the time they are needed? A) ERP B) JIT C) TQM D) ISO 8) Walmart classifies its clothing held for sale as A) finished goods inventory. B) raw materials inventory. C) work in process inventory. D) merchandise inventory. 9) When determining the cost of a manufactured product, a salesperson's salary would be classified as A) a direct cost. B) an indirect cost. C) a period cost. D) a conversion cost. 10) Which element in the value chain would contain inventoriable costs for a manufacturer? A) Research and development B) Design C) Production D) Distribution 11) Which of the following are classified as manufacturing overhead? A) Direct materials and direct labour B) Indirect labour and indirect materials C) All materials D) Factory rent and direct labour The following table applies to questions 12) & 13). Express Company reports the following data for its first year of operation. Cost of goods manufactured $475,000 Work in process inventory, beginning Work in process inventory, ending 140,000 Direct materials used 10,000 Manufacturing overhead 185,000 Finished goods inventory, ending 101,000 12) What are the total manufacturing costs to account for at Express Company? A) $615,000 B) $475,000 C) $295,000 D) $529,000 13) What is the cost of goods sold at Express Company? A) $475,000 B) $374,000 C) $770,000 D) $514,000 14) Selected information regarding a company's most recent quarter follows (all data in thousands). Operating expenses $700 Gross profit $2,390 Sales revenue $4,000 Ending finished goods inventory $200 Cost of goods manufactured $1,560 What was cost of goods sold? A) $1,610 B) $1,740 C) $1,060 D) $860 15) Variable costs A) are fixed in total as production levels change. B) are fixed per unit and vary in total as productions levels change. C) decrease per unit as production volume increases. D) vary per unit of output as production levels change.16) A company has fixed costs of $75,000 per month. If sales double from 5,000 to 10,000 units during the month, xed costs will A) remain the same. B) double. C) be cut in half. D) increase slightly. 17) Renting a car and paying $15 per day plus $.03 per mile driven is an example of what type of cost? A) Conversion cost B) Fixed cost C) Mixed cost D) Variable cost 18) Which of the following statements is TRUE with respect to variable costs per unit? A) They will decrease as production increases within the relevant range. B) They will increase as production decreases within the relevant range. C) They will remain the same as production levels change within the relevant range. D) They will decrease as production decreases within the relevant range. 19) When predicting costs at different volumes, managers should consider which of the following? A) The relevant range of the cost B) The type of cost behaviour C) Neither of the above D) Both of the above 20) If a company's overhead cost equation is y = $9.90x + $120,014. The "x" is A) total overhead costs. B) total fixed costs. C) the cost driver in units. D) the variable costs. 21) Total fixed costs for Herman Enterprises are $200,000. Total costs, both fixed and variable, are $550,000 if 100,000 units are produced. The variable cost per unit is A) $2.00/unit. B) $7.50/unit. C) $3.50/unit. D) $5.50/unit. 22) The data points with the _ and __ should be selected for use in the highlow method. A) highest volume; the lowest volume B) highest cost,- the lowest cost C) highest volume; the lowest cost D) highest cost; the lowest volume 23) Your client's company wants to determine the relationship between its monthly operating costs and a potential cost driver. The output of regression analysis showed the following information: Intercept Coefficient = 89,620 X Variable 1 Coefficient = 62.53 R-square = 0.9852 Should your client use this information to predict monthly operating costs? A) Yes, because Rsquare is so high. B) No, because R-square is so high. C) Yes, because regression analysis can be relied upon. D) There is not enough information to make this prediction. 24) The contribution margin income statement presents _ below the contribution margin line. A) only variable expenses relating to selling and administrative activities B) only fixed expenses relating to selling and administrative activities C) all variable expenses D) all fixed expenses 25) If production exceeds units sold, which of the following is TRUE concerning income? A) A higher operating income will result under a variable costing income statement. B) A lower operating income will result under an absorption costing income statement. C) The same operating income will result under both a variable costing and absorption costing income statement. D) A higher operating income will result under an absorption costing income statement. Part B: Questions 1-3 are worth 1) Swirzoff Company sells office supplies. The following information summarizes Swirzoff's operating activities for the past year: Utilities for store 6,000 Rent for store 8,000 Sales commissions 4,500 Purchases of merchandise 54,000 Inventory, ending 20,500 Inventory, beginning 30,000 Sales revenue 108,000 Required: Prepare an income statement for Swirzoff Company, a merchandiser, for the year ended December 31. The template is provided below.2) (i) Is financial accounting or managerial accounting more useful to a plant (factory) manager? Explain your reasoning by giving two examples to support your argument. (ii) In which scenario would financial accounting be more useful. Explain your reasoning by giving two examples to support your argument