Test Bank Fundamental Managerial Accounting Concepts, 10th Edition by Edmonds
B! B! B! B! B! B! B! B! B!
Answers Included B!
Chapter 01 10e
B! B!
1) Which of the following items are representative of managerial accounting?
B! B! B! B! B! B! B! B! B!
Note: Check all that apply.
B! B! B! B!
A) Financial statement in accordance with GAAP
B! B! B! B! B!
B) Monthly sales reports used internally to allocate funds to divisions
B! B! B! B! B! B! B! B! B!
C) Quarterly financial information sent to investors
B! B! B! B! B!
D) Audited financial statements submitted to bankers with credit application
B! B! B! B! B! B! B! B!
E) Budget projections used to make logistic decisions
B! B! B! B! B! B!
2) Which of the following costs are not included in the cost of manufacturing a product?
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
Note: Check all that apply.
B! B! B! B!
A) Marketing
B) Production workers' wages B! B!
C) Factory janitor's wages
B! B!
D) CEO salary B!
E) Depreciation on manufacturing equipment B! B! B!
3) Which of the following is considered a downstream cost?
B! B! B! B! B! B! B! B!
Note: Check all that apply.
B! B! B! B!
A) Research and development B! B!
B) Production wages B!
C) Advertising cost B!
D) Warranty cost B!
E) Cost of internet in manufacturing plant
B! B! B! B! B!
4) Which of the following are examples of inventory holding costs?
B! B! B! B! B! B! B! B! B!
Note: Check all that apply.
B! B! B! B!
1
, A) Cost of warehouse space B! B! B!
B) Cost of shipping inventory to customers
B! B! B! B! B!
C) Research and development cost B! B! B!
D) Cost of supervising inventory
B! B! B!
E) Inventory spoilage cost B! B!
5) Ashley Bradshaw is the manager of one department in a large store. In this capaci
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
ty, which of the following kinds of information would she be interested in?
B! B! B! B! B! B! B! B! B! B! B! B!
A) Economic data B!
B) Financial data B!
C) Nonfinancial data B!
D) Financial, economic, and nonfinancial data B! B! B! B!
6) All of the following are features of managerial accountingexcept:
B! B! B! B! B! B! B! B!
A) information is provided primarily to insiders such as managers.
B! B! B! B! B! B! B! B!
B) information includes economic and non-financial data as well as financial data.
B! B! B! B! B! B! B! B! B! B!
C) information is characterized by objectivity, reliability, consistency, and accuracy.
B! B! B! B! B! B! B! B!
D) information is reported continuously with a present or future orientation.
B! B! B! B! B! B! B! B! B!
7) Choose the answer that isnot a distinguishing characteristic of financial accountin
B! B! B! B! B! B! B! B! B! B!
g information.
B!
A) It is global information that reflects the performance of the whole company.
B! B! B! B! B! B! B! B! B! B! B!
B) It is focused primarily on the future.
B! B! B! B! B! B!
C) It is more concerned with financial data than physical or economic data.
B! B! B! B! B! B! B! B! B! B! B!
D) It is more highly regulated than managerial accounting information.
B! B! B! B! B! B! B! B!
2
,8) Managerial accounting information is limited or restricted by which of the followi
B! B! B! B! B! B! B! B! B! B! B!
ng authorities or principles?
B! B! B!
A) Securities and Exchange Commission
B! B! B!
B) Generally Accepted Accounting Principles
B! B! B!
C) Managerial Accounting Standards Board
B! B! B!
D) Value-Added Principle B!
9) Select theincorrect statement regarding the relationship between type of user and type
B! B! B! B! B! B! B! B! B! B! B! B!
of information.
B!
A) Middle managers need more nonfinancial, or operational data than do seni
B! B! B! B! B! B! B! B! B! B!
or executives.
B!
B) Assembly line supervisors need more immediate feedback on performance than d
B! B! B! B! B! B! B! B! B! B!
o senior executives.
B! B!
C) Senior executives need less aggregated information than do lower-level managers.
B! B! B! B! B! B! B! B! B!
D) Senior executives use general economic information as well as financial information.
B! B! B! B! B! B! B! B! B! B!
10) Which group would use managerial accounting data of XY Company?
B! B! B! B! B! B! B! B! B!
A) Stockholders
B) Managers
C) Executives
D) Both managers and executives
B! B! B!
E) All of the groups would use managerial accounting data
B! B! B! B! B! B! B! B!
11) Which of the following is a feature of managerial accounting information?
B! B! B! B! B! B! B! B! B! B!
3
, A) Information is not distributed to the public B! B! B! B! B! B!
B) Information reports on the company as a whole B! B! B! B! B! B! B!
C) Information is focused on the past B! B! B! B! B!
D) Information is reported annually B! B! B!
12) Select thecorrect statement regarding managerial and financial accounting.
B! B! B! B! B! B! B!
A) Users of managerial accounting information desire greater aggregation than do use
B! B! B! B! B! B! B! B! B! B!
rs of financial accounting information.
B! B! B! B!
B) Both managerial and financial accounting use economic and physical data in additi
B! B! B! B! B! B! B! B! B! B! B!
on to financial data.
B! B! B!
C) Financial accounting is more highly regulated than managerial accounting.
B! B! B! B! B! B! B! B!
D) Timeliness is more important in financial accounting than in managerial accounting.
B! B! B! B! B! B! B! B! B! B!
13) Which of the following most exemplifies the value-added principle?
B! B! B! B! B! B! B! B!
A) An ongoing process where continuous improvement is the goal.
B! B! B! B! B! B! B! B!
B) A competitive management program that emphasizes quality.
B! B! B! B! B! B!
C) Information gathering and reporting activities should be restricted to those activiti
B! B! B! B! B! B! B! B! B! B!
es that add value in excess of their cost.
B! B! B! B! B! B! B! B!
D) Managerial accounting information is measured in economic, physical, and financial
B! B! B! B! B! B! B! B! B!
terms.
14) Which of the following costs would be classified as a direct cost for a company t
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
hat produces motorcycles?
B! B!
4
B! B! B! B! B! B! B! B! B!
Answers Included B!
Chapter 01 10e
B! B!
1) Which of the following items are representative of managerial accounting?
B! B! B! B! B! B! B! B! B!
Note: Check all that apply.
B! B! B! B!
A) Financial statement in accordance with GAAP
B! B! B! B! B!
B) Monthly sales reports used internally to allocate funds to divisions
B! B! B! B! B! B! B! B! B!
C) Quarterly financial information sent to investors
B! B! B! B! B!
D) Audited financial statements submitted to bankers with credit application
B! B! B! B! B! B! B! B!
E) Budget projections used to make logistic decisions
B! B! B! B! B! B!
2) Which of the following costs are not included in the cost of manufacturing a product?
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
Note: Check all that apply.
B! B! B! B!
A) Marketing
B) Production workers' wages B! B!
C) Factory janitor's wages
B! B!
D) CEO salary B!
E) Depreciation on manufacturing equipment B! B! B!
3) Which of the following is considered a downstream cost?
B! B! B! B! B! B! B! B!
Note: Check all that apply.
B! B! B! B!
A) Research and development B! B!
B) Production wages B!
C) Advertising cost B!
D) Warranty cost B!
E) Cost of internet in manufacturing plant
B! B! B! B! B!
4) Which of the following are examples of inventory holding costs?
B! B! B! B! B! B! B! B! B!
Note: Check all that apply.
B! B! B! B!
1
, A) Cost of warehouse space B! B! B!
B) Cost of shipping inventory to customers
B! B! B! B! B!
C) Research and development cost B! B! B!
D) Cost of supervising inventory
B! B! B!
E) Inventory spoilage cost B! B!
5) Ashley Bradshaw is the manager of one department in a large store. In this capaci
B! B! B! B! B! B! B! B! B! B! B! B! B! B!
ty, which of the following kinds of information would she be interested in?
B! B! B! B! B! B! B! B! B! B! B! B!
A) Economic data B!
B) Financial data B!
C) Nonfinancial data B!
D) Financial, economic, and nonfinancial data B! B! B! B!
6) All of the following are features of managerial accountingexcept:
B! B! B! B! B! B! B! B!
A) information is provided primarily to insiders such as managers.
B! B! B! B! B! B! B! B!
B) information includes economic and non-financial data as well as financial data.
B! B! B! B! B! B! B! B! B! B!
C) information is characterized by objectivity, reliability, consistency, and accuracy.
B! B! B! B! B! B! B! B!
D) information is reported continuously with a present or future orientation.
B! B! B! B! B! B! B! B! B!
7) Choose the answer that isnot a distinguishing characteristic of financial accountin
B! B! B! B! B! B! B! B! B! B!
g information.
B!
A) It is global information that reflects the performance of the whole company.
B! B! B! B! B! B! B! B! B! B! B!
B) It is focused primarily on the future.
B! B! B! B! B! B!
C) It is more concerned with financial data than physical or economic data.
B! B! B! B! B! B! B! B! B! B! B!
D) It is more highly regulated than managerial accounting information.
B! B! B! B! B! B! B! B!
2
,8) Managerial accounting information is limited or restricted by which of the followi
B! B! B! B! B! B! B! B! B! B! B!
ng authorities or principles?
B! B! B!
A) Securities and Exchange Commission
B! B! B!
B) Generally Accepted Accounting Principles
B! B! B!
C) Managerial Accounting Standards Board
B! B! B!
D) Value-Added Principle B!
9) Select theincorrect statement regarding the relationship between type of user and type
B! B! B! B! B! B! B! B! B! B! B! B!
of information.
B!
A) Middle managers need more nonfinancial, or operational data than do seni
B! B! B! B! B! B! B! B! B! B!
or executives.
B!
B) Assembly line supervisors need more immediate feedback on performance than d
B! B! B! B! B! B! B! B! B! B!
o senior executives.
B! B!
C) Senior executives need less aggregated information than do lower-level managers.
B! B! B! B! B! B! B! B! B!
D) Senior executives use general economic information as well as financial information.
B! B! B! B! B! B! B! B! B! B!
10) Which group would use managerial accounting data of XY Company?
B! B! B! B! B! B! B! B! B!
A) Stockholders
B) Managers
C) Executives
D) Both managers and executives
B! B! B!
E) All of the groups would use managerial accounting data
B! B! B! B! B! B! B! B!
11) Which of the following is a feature of managerial accounting information?
B! B! B! B! B! B! B! B! B! B!
3
, A) Information is not distributed to the public B! B! B! B! B! B!
B) Information reports on the company as a whole B! B! B! B! B! B! B!
C) Information is focused on the past B! B! B! B! B!
D) Information is reported annually B! B! B!
12) Select thecorrect statement regarding managerial and financial accounting.
B! B! B! B! B! B! B!
A) Users of managerial accounting information desire greater aggregation than do use
B! B! B! B! B! B! B! B! B! B!
rs of financial accounting information.
B! B! B! B!
B) Both managerial and financial accounting use economic and physical data in additi
B! B! B! B! B! B! B! B! B! B! B!
on to financial data.
B! B! B!
C) Financial accounting is more highly regulated than managerial accounting.
B! B! B! B! B! B! B! B!
D) Timeliness is more important in financial accounting than in managerial accounting.
B! B! B! B! B! B! B! B! B! B!
13) Which of the following most exemplifies the value-added principle?
B! B! B! B! B! B! B! B!
A) An ongoing process where continuous improvement is the goal.
B! B! B! B! B! B! B! B!
B) A competitive management program that emphasizes quality.
B! B! B! B! B! B!
C) Information gathering and reporting activities should be restricted to those activiti
B! B! B! B! B! B! B! B! B! B!
es that add value in excess of their cost.
B! B! B! B! B! B! B! B!
D) Managerial accounting information is measured in economic, physical, and financial
B! B! B! B! B! B! B! B! B!
terms.
14) Which of the following costs would be classified as a direct cost for a company t
B! B! B! B! B! B! B! B! B! B! B! B! B! B! B!
hat produces motorcycles?
B! B!
4
