,FundamentaliManagerialiAccountingiConcepts,i9ei(Edmonds)iChap
teri1i ManagementiAccountingiandiCorporateiGovernance
1) AshleyiBradshawiisitheimanageriofioneidepartmentiiniailargeistore.iInithisicapacity,iwhichiofith
eifollowingikindsiofiinformationiwouldisheibeiinterestediin?
A) Economicidata
B) Financialidata
C) Nonfinancialidata
D) Financial,ieconomic,iandinonfinancialidata
2) Alliofitheifollowingiareifeaturesiofimanagerialiaccountingiexcept:
A) informationiisiprovidediprimarilyitoiinsidersisuchiasimanagers.
B) informationiincludesieconomiciandinon-financialidataiasiwelliasifinancialidata.
C) informationiisicharacterizedibyiobjectivity,ireliability,iconsistency,iandiaccuracy.
D) informationiisireportedicontinuouslyiwithiaipresentiorifutureiorientation.
3) Chooseitheianswerithatiisinotiaidistinguishingicharacteristiciofifinancialiaccountingii
nformation.
A) Itiisiglobaliinformationithatireflectsitheiperformanceiofitheiwholeicompany.
B) Itiisifocusediprimarilyionitheifuture.
C) Itiisimoreiconcernediwithifinancialidataithaniphysicaliorieconomicidata.
D) Itiisimoreihighlyiregulatedithanimanagerialiaccountingiinformation.
4) Managerialiaccountingiinformationiisilimitediorirestrictedibyiwhichiofitheifollowingia
uthoritiesioriprinciples?
A) SecuritiesiandiExchangeiCommission
B) GenerallyiAcceptediAccountingiPrinciples
C) ManagerialiAccountingiStandardsiBoard
D) Value-AddediPrinciple
5) Selectitheiincorrectistatementiregardingitheirelationshipibetweenitypeiofiuserianditypeiofiin
formation.
A) Middleimanagersineedimoreinonfinancial,iorioperationalidataithanidoisenioriexecutives.
B) Assemblyilineisupervisorsineedimoreiimmediateifeedbackioniperformanceithanidoiseniorie
xecutives.
C) Senioriexecutivesineedilessiaggregatediinformationithanidoilower-levelimanagers.
D) Senioriexecutivesiuseigeneralieconomiciinformationiasiwelliasifinancialiinformation.
6) Selectitheicorrectistatementiregardingimanagerialiandifinancialiaccounting.
A) Usersiofimanagerialiaccountingiinformationidesireigreateriaggregationithanidoiusersiofifi
nancialiaccountingiinformation.
B) Bothimanagerialiandifinancialiaccountingiuseieconomiciandiphysicalidataiiniadditionitoifi
nancialidata.
C) Financialiaccountingiisimoreihighlyiregulatedithanimanagerialiaccounting.
D) Timelinessiisimoreiimportantiinifinancialiaccountingithaniinimanagerialiaccounting.
1
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,7) Whichiofitheifollowingimostiexemplifiesitheivalue-addediprinciple?
A) Aniongoingiprocessiwhereicontinuousiimprovementiisitheigoal.
B) Aicompetitiveimanagementiprogramithatiemphasizesiquality.
C) Informationigatheringiandireportingiactivitiesishouldibeirestricteditoithoseiactivitiesithatiaddiv
alueiiniexcessiofitheiricost.
D) Managerialiaccountingiinformationiisimeasurediinieconomic,iphysical,iandifinancialiterms.
8) Whichiofitheifollowingicostsiwouldibeiclassifiediasiaidirecticostiforiaicompanyithatiproducesim
otorcycles?
A) Rentiofimanufacturingifacilityithatiproducesimotorcycles.
B) Seatsiusediinitheimotorcycles.
C) Wagesiofimotorcycleiassemblyiworkers.
D) Bothiseatsiusediinitheimotorcyclesiandiwagesiofimotorcycleiassemblyiworkersiareicorrect.
9) Whichiofitheifollowingiisiaiproducticostiforiaiconstructionicompany?
A) Costiofitransportingirawimaterialsitoitheijobisite
B) Wagesipaiditoitheicompany'sipayrolliclerk
C) Rentiofitheicompany'simainioffice
D) Alliofithese.
10) Foriaimanufacturingicompany,iproducticostsiincludeialliofitheifollowingiexcept:
A) indirectimaterialicosts.
B) warehousingicostsiofifinishedigoods.
C) directilaboricosts.
D) Alliofitheseiareiproducticosts.
11) Duringiitsifirstiyeariofioperations,iConnoriCompanyipaidi$50,000iforidirectimaterialsiand
$36,000iiniwagesiforiproductioniworkers.iLeaseipaymentsiandiutilitiesionitheiproductionifacilitiesi
amounteditoi$14,000.iGeneral,iselling,iandiadministrativeiexpensesiwerei$16,000.iTheicompanyip
roducedi5,000iunitsiandisoldi4,000iunitsifori$30.00iaiunit.iTheiaverageicostitoiproduceioneiunitiisi
whichiofitheifollowingiamounts?
A) $20.00
B) $16.00
C) $18.40
D) $25.00
12) Duringiitsifirstiyeariofioperations,iForrestiCompanyipaidi$30,000iforidirectimaterialsiand
$50,000iiniwagesiforiproductioniworkers.iLeaseipayments,iutilityicosts,iandidepreciationionifactor
yiequipmentitotaledi$15,000.iGeneral,iselling,iandiadministrativeiexpensesiwerei$20,000.iTheiave
rageicostitoiproduceioneiunitiwasi$2.50.iHowimanyiunitsiwereiproducediduringitheiperiod?
A) 40,000
B) 46,000
C) 38,000
D) Noneiofithese.
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 13) Whyidoiaccountantsinormallyicalculateicostiperiunitiasianiaverage?
A) Determiningitheiexacticostiofiaiproductiisivirtuallyiimpossible.
B) Someimanufacturing-relatedicostsicannotibeiaccuratelyitraceditoispecificiunitsiofiproduct.
C) Eveniwheniproducingimultipleiunitsiofitheisameiproduct,inormalivariationsioccuriinitheia
mountiofimaterialsiandilaboriused.
D) Alliofitheseiareijustificationsiforicomputingiaverageiuniticosts.
14) Whichiofitheifollowingicostsiisinoticonsiderediaiperiodicost?
A) Warehousingicosts
B) Depreciationiofideliveryivehicles
C) Salariesipaiditoicompanyiexecutives
D) Freightipaidioniaipurchaseiofirawimaterials
15) Selectitheiincorrectistatementiregardingicostsiandiexpenses.
A) Someicostsiareiinitiallyirecordediasiexpensesiwhileiothersiareiinitiallyirecordediasiassets.
B) Expensesiareiincurrediwheniassetsiareiuseditoigenerateirevenue.
C) Manufacturing-relatedicostsiareiinitiallyirecordediasiexpenses.
D) Non-manufacturingicostsishouldibeiexpensediinitheiperiodiiniwhichitheyiareiincurred.
16) Whichiofitheifollowingicostsishouldibeirecordediasianiexpense?
A) Salaryiofiadministrativeiemployee
B) Depreciationiofimanufacturingiequipment
C) Insuranceiforitheifactoryibuilding
D) Alliofitheseiareiexpenses.
17) Whichiofitheifollowingicostsishouldinotibeirecordediasianiexpense?
A) Insuranceionifactoryibuilding
B) Salesicommissions
C) Productishippingicosts
D) Productiadvertising
18) Whichiofitheifollowingitransactionsiwouldicauseinetiincomeiforitheiperioditoidecrease?
A) Paidi$2,500icashiforirawimaterialicost
B) Purchasedi$8,000iofimerchandiseiinventory
C) Recordedi$5,000iofidepreciationioniproductioniequipment
D) Usedi$2,000iofiofficeisupplies
19) Whichiofitheifollowingistatementsiisitrueiwithiregarditoiproducticostsiversusigeneral,iselling,ia
ndiadministrativeicosts?
A) Producticostsiassociatediwithiunsoldiunitsiappearionitheiincomeistatementiasigeneralie
xpenses.
B) General,iselling,iandiadministrativeicostsiappearionitheibalanceisheet.
C) Producticostsiassociatediwithiunitsisoldiappearionitheiincomeistatementiasicostiofigoodsisold.
D) Noneiofitheseiareitrue.
3
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teri1i ManagementiAccountingiandiCorporateiGovernance
1) AshleyiBradshawiisitheimanageriofioneidepartmentiiniailargeistore.iInithisicapacity,iwhichiofith
eifollowingikindsiofiinformationiwouldisheibeiinterestediin?
A) Economicidata
B) Financialidata
C) Nonfinancialidata
D) Financial,ieconomic,iandinonfinancialidata
2) Alliofitheifollowingiareifeaturesiofimanagerialiaccountingiexcept:
A) informationiisiprovidediprimarilyitoiinsidersisuchiasimanagers.
B) informationiincludesieconomiciandinon-financialidataiasiwelliasifinancialidata.
C) informationiisicharacterizedibyiobjectivity,ireliability,iconsistency,iandiaccuracy.
D) informationiisireportedicontinuouslyiwithiaipresentiorifutureiorientation.
3) Chooseitheianswerithatiisinotiaidistinguishingicharacteristiciofifinancialiaccountingii
nformation.
A) Itiisiglobaliinformationithatireflectsitheiperformanceiofitheiwholeicompany.
B) Itiisifocusediprimarilyionitheifuture.
C) Itiisimoreiconcernediwithifinancialidataithaniphysicaliorieconomicidata.
D) Itiisimoreihighlyiregulatedithanimanagerialiaccountingiinformation.
4) Managerialiaccountingiinformationiisilimitediorirestrictedibyiwhichiofitheifollowingia
uthoritiesioriprinciples?
A) SecuritiesiandiExchangeiCommission
B) GenerallyiAcceptediAccountingiPrinciples
C) ManagerialiAccountingiStandardsiBoard
D) Value-AddediPrinciple
5) Selectitheiincorrectistatementiregardingitheirelationshipibetweenitypeiofiuserianditypeiofiin
formation.
A) Middleimanagersineedimoreinonfinancial,iorioperationalidataithanidoisenioriexecutives.
B) Assemblyilineisupervisorsineedimoreiimmediateifeedbackioniperformanceithanidoiseniorie
xecutives.
C) Senioriexecutivesineedilessiaggregatediinformationithanidoilower-levelimanagers.
D) Senioriexecutivesiuseigeneralieconomiciinformationiasiwelliasifinancialiinformation.
6) Selectitheicorrectistatementiregardingimanagerialiandifinancialiaccounting.
A) Usersiofimanagerialiaccountingiinformationidesireigreateriaggregationithanidoiusersiofifi
nancialiaccountingiinformation.
B) Bothimanagerialiandifinancialiaccountingiuseieconomiciandiphysicalidataiiniadditionitoifi
nancialidata.
C) Financialiaccountingiisimoreihighlyiregulatedithanimanagerialiaccounting.
D) Timelinessiisimoreiimportantiinifinancialiaccountingithaniinimanagerialiaccounting.
1
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
,7) Whichiofitheifollowingimostiexemplifiesitheivalue-addediprinciple?
A) Aniongoingiprocessiwhereicontinuousiimprovementiisitheigoal.
B) Aicompetitiveimanagementiprogramithatiemphasizesiquality.
C) Informationigatheringiandireportingiactivitiesishouldibeirestricteditoithoseiactivitiesithatiaddiv
alueiiniexcessiofitheiricost.
D) Managerialiaccountingiinformationiisimeasurediinieconomic,iphysical,iandifinancialiterms.
8) Whichiofitheifollowingicostsiwouldibeiclassifiediasiaidirecticostiforiaicompanyithatiproducesim
otorcycles?
A) Rentiofimanufacturingifacilityithatiproducesimotorcycles.
B) Seatsiusediinitheimotorcycles.
C) Wagesiofimotorcycleiassemblyiworkers.
D) Bothiseatsiusediinitheimotorcyclesiandiwagesiofimotorcycleiassemblyiworkersiareicorrect.
9) Whichiofitheifollowingiisiaiproducticostiforiaiconstructionicompany?
A) Costiofitransportingirawimaterialsitoitheijobisite
B) Wagesipaiditoitheicompany'sipayrolliclerk
C) Rentiofitheicompany'simainioffice
D) Alliofithese.
10) Foriaimanufacturingicompany,iproducticostsiincludeialliofitheifollowingiexcept:
A) indirectimaterialicosts.
B) warehousingicostsiofifinishedigoods.
C) directilaboricosts.
D) Alliofitheseiareiproducticosts.
11) Duringiitsifirstiyeariofioperations,iConnoriCompanyipaidi$50,000iforidirectimaterialsiand
$36,000iiniwagesiforiproductioniworkers.iLeaseipaymentsiandiutilitiesionitheiproductionifacilitiesi
amounteditoi$14,000.iGeneral,iselling,iandiadministrativeiexpensesiwerei$16,000.iTheicompanyip
roducedi5,000iunitsiandisoldi4,000iunitsifori$30.00iaiunit.iTheiaverageicostitoiproduceioneiunitiisi
whichiofitheifollowingiamounts?
A) $20.00
B) $16.00
C) $18.40
D) $25.00
12) Duringiitsifirstiyeariofioperations,iForrestiCompanyipaidi$30,000iforidirectimaterialsiand
$50,000iiniwagesiforiproductioniworkers.iLeaseipayments,iutilityicosts,iandidepreciationionifactor
yiequipmentitotaledi$15,000.iGeneral,iselling,iandiadministrativeiexpensesiwerei$20,000.iTheiave
rageicostitoiproduceioneiunitiwasi$2.50.iHowimanyiunitsiwereiproducediduringitheiperiod?
A) 40,000
B) 46,000
C) 38,000
D) Noneiofithese.
2
Copyright 2020 © McGraw-Hill Education. All rights reserved. No reproduction or distribution without the prior
written consent of McGraw-Hill Education.
, 13) Whyidoiaccountantsinormallyicalculateicostiperiunitiasianiaverage?
A) Determiningitheiexacticostiofiaiproductiisivirtuallyiimpossible.
B) Someimanufacturing-relatedicostsicannotibeiaccuratelyitraceditoispecificiunitsiofiproduct.
C) Eveniwheniproducingimultipleiunitsiofitheisameiproduct,inormalivariationsioccuriinitheia
mountiofimaterialsiandilaboriused.
D) Alliofitheseiareijustificationsiforicomputingiaverageiuniticosts.
14) Whichiofitheifollowingicostsiisinoticonsiderediaiperiodicost?
A) Warehousingicosts
B) Depreciationiofideliveryivehicles
C) Salariesipaiditoicompanyiexecutives
D) Freightipaidioniaipurchaseiofirawimaterials
15) Selectitheiincorrectistatementiregardingicostsiandiexpenses.
A) Someicostsiareiinitiallyirecordediasiexpensesiwhileiothersiareiinitiallyirecordediasiassets.
B) Expensesiareiincurrediwheniassetsiareiuseditoigenerateirevenue.
C) Manufacturing-relatedicostsiareiinitiallyirecordediasiexpenses.
D) Non-manufacturingicostsishouldibeiexpensediinitheiperiodiiniwhichitheyiareiincurred.
16) Whichiofitheifollowingicostsishouldibeirecordediasianiexpense?
A) Salaryiofiadministrativeiemployee
B) Depreciationiofimanufacturingiequipment
C) Insuranceiforitheifactoryibuilding
D) Alliofitheseiareiexpenses.
17) Whichiofitheifollowingicostsishouldinotibeirecordediasianiexpense?
A) Insuranceionifactoryibuilding
B) Salesicommissions
C) Productishippingicosts
D) Productiadvertising
18) Whichiofitheifollowingitransactionsiwouldicauseinetiincomeiforitheiperioditoidecrease?
A) Paidi$2,500icashiforirawimaterialicost
B) Purchasedi$8,000iofimerchandiseiinventory
C) Recordedi$5,000iofidepreciationioniproductioniequipment
D) Usedi$2,000iofiofficeisupplies
19) Whichiofitheifollowingistatementsiisitrueiwithiregarditoiproducticostsiversusigeneral,iselling,ia
ndiadministrativeicosts?
A) Producticostsiassociatediwithiunsoldiunitsiappearionitheiincomeistatementiasigeneralie
xpenses.
B) General,iselling,iandiadministrativeicostsiappearionitheibalanceisheet.
C) Producticostsiassociatediwithiunitsisoldiappearionitheiincomeistatementiasicostiofigoodsisold.
D) Noneiofitheseiareitrue.
3
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written consent of McGraw-Hill Education.
