Question 1

The controller of an organization participates in

Answer

a		planning
b		controlling
c		decision making
d		all of these

Question 2

The objective of profit maximization

Answer

a		should be the only goal of an organization
b		is an objective of Financial accounting but not Management accounting
c		should be achieved through legal and ethical means
c		should outweigh the goal of product quality

Question 3

Which of the following areas is not emphasized on the CMA examination?

Answer

a		external auditing and business law
b		economics, finance, and management
c		decision analysis and information systems
d		financial accounting and reporting

Question 4

An indirect cost

Answer

a		can be easily and accurately traced to a cost object.
b		is hard to trace.
c		should never be assigned to a cost object.
d		do none of these.

Question 5

Which of the following is an example of an intangible product?

Answer

a		hamburgers
b		computers
c		automobiles
d		dental care

Question 6

Which of the following is an example of direct labor?

Answer

a		chef in a restaurant
b		janitor in a production plant
c		security guard for the factory
d		management accountant

Question 7

The unit cost

Answer

a		is the total product costs divided by the number of units produced
b		includes period costs
c		is the total prime costs divided by the number of units produced
d		is the total conversion costs divided by the number of units produced

Question 8

Prime cost is

Answer

a		indirect materials cost and indirect labor cost
b		direct materials cost and direct labor cost
c		direct labor cost and overhead cost
d		selling cost and administrative cost

Question 9

Conversion cost is the sum of

Answer

a		direct materials cost and direct labor cost
b		indirect labor cost and overhead cost
c		product costs and period costs
d		direct labor cost and overhead cost

Question 10

Which of the following is an example of a period cost?

Answer

a		research and development
b		selling and marketing
c		general accounting
d		all of these

Question 11

The cost of the partially completed goods at the end of the period would be

Answer

a		beginning work in process inventory
b		cost of goods manufactured
c		ending work in process inventory
d		ending finished goods inventory

Question 12

Which of the following would be found on the Balance Sheet of a manufacturer?

Answer

a		cost of goods sold
b		cost of goods manufactured
c		factory building
d		all of the these