ACC 241 Exam 1 Test Questions and
All Correct Answers 2025-2026
Updated.
Primary responsibilities of a manager - Answer Planning - setting goals for company and
determining how to achieve them
Directing - overseeing companies’ day to day operation
Controlling - evaluating results of the business operation against the plan and making
adjustments to keep company pressing towards goal
Evaluating
management accounting - Answer specializes in the study of how managers use accounting
and/or financial information in current or future business decisions. Management accountants
use both qualitative and quantitative information in their work. Unlike other accountants, they
primarily report to the internal management of a company, rather than to an external body like
shareholders or tax collection agencies.
financial accounting - Answer produces annual and quarterly consolidated financial
statements that will be used by investors and creditors to make investment and lending
decisions. Must follow GAAP (Generally Accepted Accounting Principles)
Skills of management accountants - Answer in order to become a certified management
accountant, one must pass a series of tests sponsored by the Institute of Management
Accountants. These tests examine one's knowledge in four subjects: business analysis,
management accounting and reporting, strategic management, and business applications.
IMA (Institute of Management Accountants - Answer A forum for research, practice
development, education, knowledge sharing, and the advocacy of the highest ethical and best
business practices in management accounting and finance.
Ethical decision-making framework - Answer IMA's Statement of Ethical Professional Practice:
Maintain professional competence, preserve confidentiality of info they handle, uphold integrity
& perform duties with integrity.
Purpose and major provisions of the Sarbanes-Oxley - Answer Restore trust in publicly traded
corporations, their management, their financial statements, & their auditors.
, Me - Like Walmart resell tangible products. Have inventory and incur inventory related costs
(ads, travel)
Ma - use labor, plant, and equipment to convert raw materials into a product. Like car
companies. Have Raw materials inventory, work in process inventory, & finished goods
inventory.
Value-chain - Answer Linked set of all value-creating processes or activities that convert basic
input materials into products or services for the final consumer.
Cost Objects - Answer Anything for which cost data is desired by a manager, e.g., products,
product lines, customers, jobs, and organizational sub-units such as departments or divisions of
a company.
Direct Costs - Answer A cost that can be directly related to producing specific goods or
performing a specific
service.
Indirect Costs - Answer Manufacturing cost that cannot be easily seen in the product.
Electricity, hazard insurance on the factory building, and real estate taxes are examples of
indirect costs.
Inventoriable Costs (Direct Material, Direct Labor, and Manufacturing Overhead) - Answer All
costs of a product that are recorded as an asset (inventory) under US GAAP (direct materials,
direct labor and manufacturing overhead). These costs are not expensed until the related
product is sold.
Period Costs - Answer Expenses recognized as costs in the period in which they were incurred;
often referred to
as operating expenses, or selling, general and administrative expenses.
Prime Costs vs Conversion Costs - Answer PC - The sum of direct material and direct labor
costs.
CC - The combined total of direct labor cost and manufacturing overhead incurred in processing
raw materials to a finished state.
Controllable Costs vs Uncontrollable Costs - Answer CC - Expenditures that are subject to the
All Correct Answers 2025-2026
Updated.
Primary responsibilities of a manager - Answer Planning - setting goals for company and
determining how to achieve them
Directing - overseeing companies’ day to day operation
Controlling - evaluating results of the business operation against the plan and making
adjustments to keep company pressing towards goal
Evaluating
management accounting - Answer specializes in the study of how managers use accounting
and/or financial information in current or future business decisions. Management accountants
use both qualitative and quantitative information in their work. Unlike other accountants, they
primarily report to the internal management of a company, rather than to an external body like
shareholders or tax collection agencies.
financial accounting - Answer produces annual and quarterly consolidated financial
statements that will be used by investors and creditors to make investment and lending
decisions. Must follow GAAP (Generally Accepted Accounting Principles)
Skills of management accountants - Answer in order to become a certified management
accountant, one must pass a series of tests sponsored by the Institute of Management
Accountants. These tests examine one's knowledge in four subjects: business analysis,
management accounting and reporting, strategic management, and business applications.
IMA (Institute of Management Accountants - Answer A forum for research, practice
development, education, knowledge sharing, and the advocacy of the highest ethical and best
business practices in management accounting and finance.
Ethical decision-making framework - Answer IMA's Statement of Ethical Professional Practice:
Maintain professional competence, preserve confidentiality of info they handle, uphold integrity
& perform duties with integrity.
Purpose and major provisions of the Sarbanes-Oxley - Answer Restore trust in publicly traded
corporations, their management, their financial statements, & their auditors.
, Me - Like Walmart resell tangible products. Have inventory and incur inventory related costs
(ads, travel)
Ma - use labor, plant, and equipment to convert raw materials into a product. Like car
companies. Have Raw materials inventory, work in process inventory, & finished goods
inventory.
Value-chain - Answer Linked set of all value-creating processes or activities that convert basic
input materials into products or services for the final consumer.
Cost Objects - Answer Anything for which cost data is desired by a manager, e.g., products,
product lines, customers, jobs, and organizational sub-units such as departments or divisions of
a company.
Direct Costs - Answer A cost that can be directly related to producing specific goods or
performing a specific
service.
Indirect Costs - Answer Manufacturing cost that cannot be easily seen in the product.
Electricity, hazard insurance on the factory building, and real estate taxes are examples of
indirect costs.
Inventoriable Costs (Direct Material, Direct Labor, and Manufacturing Overhead) - Answer All
costs of a product that are recorded as an asset (inventory) under US GAAP (direct materials,
direct labor and manufacturing overhead). These costs are not expensed until the related
product is sold.
Period Costs - Answer Expenses recognized as costs in the period in which they were incurred;
often referred to
as operating expenses, or selling, general and administrative expenses.
Prime Costs vs Conversion Costs - Answer PC - The sum of direct material and direct labor
costs.
CC - The combined total of direct labor cost and manufacturing overhead incurred in processing
raw materials to a finished state.
Controllable Costs vs Uncontrollable Costs - Answer CC - Expenditures that are subject to the
