TEST BANK FOR
j j
FundamentaljManagerialjAccountingjConcepts,j10thjEditionjbyjEdmonds
Chapterj1-14
AnswersjIncluded ✅
Chapterj01j10e
1) Whichjofjthejfollowingjitemsjarejrepresentativejofjmanagerialjaccounting?
Note:jCheckjalljthatjapply.
A) FinancialjstatementjinjaccordancejwithjGAAP
B) Monthlyjsalesjreportsjusedjinternallyjtojallocatejfundsjtojdivisions
C) Quarterlyjfinancialjinformationjsentjtojinvestors
D) Auditedjfinancialjstatementsjsubmittedjtojbankersjwithjcreditjapplication
E) Budgetjprojectionsjusedjtojmakejlogisticjdecisions
2) Whichjofjthejfollowingjcostsjarejnotjincludedjinjthejcostjofjmanufacturingjajproduct?
Note:jCheckjalljthatjapply.
A) Marketing
B) Productionjworkers'jwages
C) Factoryjjanitor'sjwages
D) CEOjsalary
E) Depreciationjonjmanufacturingjequipment
3) Whichjofjthejfollowingjisjconsideredjajdownstreamjcost?
Note:jCheckjalljthatjapply.
A) Researchjandjdevelopment
B) Productionjwages
C) Advertisingjcost
D) Warrantyjcost
E) Costjofjinternetjinjmanufacturingjplant
4) Whichjofjthejfollowingjarejexamplesjofjinventoryjholdingjcosts?
Note:jCheckjalljthatjapply.
, A) Costjofjwarehousejspace
B) Costjofjshippingjinventoryjtojcustomers
C) Researchjandjdevelopmentjcost
D) Costjofjsupervisingjinventory
E) Inventoryjspoilagejcost
5) AshleyjBradshawjisjthejmanagerjofjonejdepartmentjinjajlargejstore.jInjthisjcapacity,jwh
ichjofjthejfollowingjkindsjofjinformationjwouldjshejbejinterestedjin?
A) Economicjdata
B) Financialjdata
C) Nonfinancialjdata
D) Financial,jeconomic,jandjnonfinancialjdata
6) Alljofjthejfollowingjarejfeaturesjofjmanagerialjaccountingexcept:
A) informationjisjprovidedjprimarilyjtojinsidersjsuchjasjmanagers.
B) informationjincludesjeconomicjandjnon-financialjdatajasjwelljasjfinancialjdata.
C) informationjisjcharacterizedjbyjobjectivity,jreliability,jconsistency,jandjaccuracy.
D) informationjisjreportedjcontinuouslyjwithjajpresentjorjfuturejorientation.
7) Choosejthejanswerjthatjisnotjajdistinguishingjcharacteristicjofjfinancialjaccountingjin
formation.
A) Itjisjglobaljinformationjthatjreflectsjthejperformancejofjthejwholejcompany.
B) Itjisjfocusedjprimarilyjonjthejfuture.
C) Itjisjmorejconcernedjwithjfinancialjdatajthanjphysicaljorjeconomicjdata.
D) Itjisjmorejhighlyjregulatedjthanjmanagerialjaccountingjinformation.
,8) Managerialjaccountingjinformationjisjlimitedjorjrestrictedjbyjwhichjofjthejfollowingjau
thoritiesjorjprinciples?
A) SecuritiesjandjExchangejCommission
B) GenerallyjAcceptedjAccountingjPrinciples
C) ManagerialjAccountingjStandardsjBoard
D) Value-AddedjPrinciple
9) Selectjtheincorrectjstatementjregardingjthejrelationshipjbetweenjtypejofjuserjandjtypejofjin
formation.
A) Middlejmanagersjneedjmorejnonfinancial,jorjoperationaljdatajthanjdojseniorje
xecutives.
B) Assemblyjlinejsupervisorsjneedjmorejimmediatejfeedbackjonjperformancejthanjdojse
niorjexecutives.
C) Seniorjexecutivesjneedjlessjaggregatedjinformationjthanjdojlower-leveljmanagers.
D) Seniorjexecutivesjusejgeneraljeconomicjinformationjasjwelljasjfinancialjinformation.
10) WhichjgroupjwouldjusejmanagerialjaccountingjdatajofjXYjCompany?
A) Stockholders
B) Managers
C) Executives
D) Bothjmanagersjandjexecutives
E) Alljofjthejgroupsjwouldjusejmanagerialjaccountingjdata
11) Whichjofjthejfollowingjisjajfeaturejofjmanagerialjaccountingjinformation?
, A) Informationjisjnotjdistributedjtojthejpublic
B) Informationjreportsjonjthejcompanyjasjajwhole
C) Informationjisjfocusedjonjthejpast
D) Informationjisjreportedjannually
12) Selectjthecorrectjstatementjregardingjmanagerialjandjfinancialjaccounting.
A) Usersjofjmanagerialjaccountingjinformationjdesirejgreaterjaggregationjthanjdojusersjof
jfinancialjaccountingjinformation.
B) Bothjmanagerialjandjfinancialjaccountingjusejeconomicjandjphysicaljdatajinjadditionjtoj
financialjdata.
C) Financialjaccountingjisjmorejhighlyjregulatedjthanjmanagerialjaccounting.
D) Timelinessjisjmorejimportantjinjfinancialjaccountingjthanjinjmanagerialjaccounting.
13) Whichjofjthejfollowingjmostjexemplifiesjthejvalue-addedjprinciple?
A) Anjongoingjprocessjwherejcontinuousjimprovementjisjthejgoal.
B) Ajcompetitivejmanagementjprogramjthatjemphasizesjquality.
C) Informationjgatheringjandjreportingjactivitiesjshouldjbejrestrictedjtojthosejactivitiesjth
atjaddjvaluejinjexcessjofjtheirjcost.
D) Managerialjaccountingjinformationjisjmeasuredjinjeconomic,jphysical,jandjfinancial
terms.
14) Whichjofjthejfollowingjcostsjwouldjbejclassifiedjasjajdirectjcostjforjajcompanyjthatjpro
ducesjmotorcycles?
j j
FundamentaljManagerialjAccountingjConcepts,j10thjEditionjbyjEdmonds
Chapterj1-14
AnswersjIncluded ✅
Chapterj01j10e
1) Whichjofjthejfollowingjitemsjarejrepresentativejofjmanagerialjaccounting?
Note:jCheckjalljthatjapply.
A) FinancialjstatementjinjaccordancejwithjGAAP
B) Monthlyjsalesjreportsjusedjinternallyjtojallocatejfundsjtojdivisions
C) Quarterlyjfinancialjinformationjsentjtojinvestors
D) Auditedjfinancialjstatementsjsubmittedjtojbankersjwithjcreditjapplication
E) Budgetjprojectionsjusedjtojmakejlogisticjdecisions
2) Whichjofjthejfollowingjcostsjarejnotjincludedjinjthejcostjofjmanufacturingjajproduct?
Note:jCheckjalljthatjapply.
A) Marketing
B) Productionjworkers'jwages
C) Factoryjjanitor'sjwages
D) CEOjsalary
E) Depreciationjonjmanufacturingjequipment
3) Whichjofjthejfollowingjisjconsideredjajdownstreamjcost?
Note:jCheckjalljthatjapply.
A) Researchjandjdevelopment
B) Productionjwages
C) Advertisingjcost
D) Warrantyjcost
E) Costjofjinternetjinjmanufacturingjplant
4) Whichjofjthejfollowingjarejexamplesjofjinventoryjholdingjcosts?
Note:jCheckjalljthatjapply.
, A) Costjofjwarehousejspace
B) Costjofjshippingjinventoryjtojcustomers
C) Researchjandjdevelopmentjcost
D) Costjofjsupervisingjinventory
E) Inventoryjspoilagejcost
5) AshleyjBradshawjisjthejmanagerjofjonejdepartmentjinjajlargejstore.jInjthisjcapacity,jwh
ichjofjthejfollowingjkindsjofjinformationjwouldjshejbejinterestedjin?
A) Economicjdata
B) Financialjdata
C) Nonfinancialjdata
D) Financial,jeconomic,jandjnonfinancialjdata
6) Alljofjthejfollowingjarejfeaturesjofjmanagerialjaccountingexcept:
A) informationjisjprovidedjprimarilyjtojinsidersjsuchjasjmanagers.
B) informationjincludesjeconomicjandjnon-financialjdatajasjwelljasjfinancialjdata.
C) informationjisjcharacterizedjbyjobjectivity,jreliability,jconsistency,jandjaccuracy.
D) informationjisjreportedjcontinuouslyjwithjajpresentjorjfuturejorientation.
7) Choosejthejanswerjthatjisnotjajdistinguishingjcharacteristicjofjfinancialjaccountingjin
formation.
A) Itjisjglobaljinformationjthatjreflectsjthejperformancejofjthejwholejcompany.
B) Itjisjfocusedjprimarilyjonjthejfuture.
C) Itjisjmorejconcernedjwithjfinancialjdatajthanjphysicaljorjeconomicjdata.
D) Itjisjmorejhighlyjregulatedjthanjmanagerialjaccountingjinformation.
,8) Managerialjaccountingjinformationjisjlimitedjorjrestrictedjbyjwhichjofjthejfollowingjau
thoritiesjorjprinciples?
A) SecuritiesjandjExchangejCommission
B) GenerallyjAcceptedjAccountingjPrinciples
C) ManagerialjAccountingjStandardsjBoard
D) Value-AddedjPrinciple
9) Selectjtheincorrectjstatementjregardingjthejrelationshipjbetweenjtypejofjuserjandjtypejofjin
formation.
A) Middlejmanagersjneedjmorejnonfinancial,jorjoperationaljdatajthanjdojseniorje
xecutives.
B) Assemblyjlinejsupervisorsjneedjmorejimmediatejfeedbackjonjperformancejthanjdojse
niorjexecutives.
C) Seniorjexecutivesjneedjlessjaggregatedjinformationjthanjdojlower-leveljmanagers.
D) Seniorjexecutivesjusejgeneraljeconomicjinformationjasjwelljasjfinancialjinformation.
10) WhichjgroupjwouldjusejmanagerialjaccountingjdatajofjXYjCompany?
A) Stockholders
B) Managers
C) Executives
D) Bothjmanagersjandjexecutives
E) Alljofjthejgroupsjwouldjusejmanagerialjaccountingjdata
11) Whichjofjthejfollowingjisjajfeaturejofjmanagerialjaccountingjinformation?
, A) Informationjisjnotjdistributedjtojthejpublic
B) Informationjreportsjonjthejcompanyjasjajwhole
C) Informationjisjfocusedjonjthejpast
D) Informationjisjreportedjannually
12) Selectjthecorrectjstatementjregardingjmanagerialjandjfinancialjaccounting.
A) Usersjofjmanagerialjaccountingjinformationjdesirejgreaterjaggregationjthanjdojusersjof
jfinancialjaccountingjinformation.
B) Bothjmanagerialjandjfinancialjaccountingjusejeconomicjandjphysicaljdatajinjadditionjtoj
financialjdata.
C) Financialjaccountingjisjmorejhighlyjregulatedjthanjmanagerialjaccounting.
D) Timelinessjisjmorejimportantjinjfinancialjaccountingjthanjinjmanagerialjaccounting.
13) Whichjofjthejfollowingjmostjexemplifiesjthejvalue-addedjprinciple?
A) Anjongoingjprocessjwherejcontinuousjimprovementjisjthejgoal.
B) Ajcompetitivejmanagementjprogramjthatjemphasizesjquality.
C) Informationjgatheringjandjreportingjactivitiesjshouldjbejrestrictedjtojthosejactivitiesjth
atjaddjvaluejinjexcessjofjtheirjcost.
D) Managerialjaccountingjinformationjisjmeasuredjinjeconomic,jphysical,jandjfinancial
terms.
14) Whichjofjthejfollowingjcostsjwouldjbejclassifiedjasjajdirectjcostjforjajcompanyjthatjpro
ducesjmotorcycles?
