1
, Answers Included
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Chapter 01 10e
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1) Which of the following items are representative of managerial accounting?
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Note: Check all that apply.
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A) Financial statement in accordance with GAAP
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B) Monthly sales reports used internally to allocate funds to divisions
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C) Quarterly financial information sent to investors
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D) Audited financial statements submitted to bankers with credit application
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E) Budget projections used to make logistic decisions
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2) Which of the following costs are not included in the cost of manufacturing a product?
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Note: Check all that apply.
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A) Marketing
B) Production workers' wages nw nw
C) Factory janitor's wages
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D) CEO salarynw
E) Depreciation on manufacturing equipment
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3) Which of the following is considered a downstream cost?
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Note: Check all that apply.
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A) Research and development nw nw
B) Production wages nw
C) Advertising cost nw
D) Warranty cost nw
E) Cost of internet in manufacturing plant
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4) Which of the following are examples of inventory holding costs?
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Note: Check all that apply.
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2
, A) Cost of warehouse space
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B) Cost of shipping inventory to customers
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C) Research and development cost
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D) Cost of supervising inventory
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E) Inventory spoilage cost nw nw
5) Ashley Bradshaw is the manager of one department in a large store. In this cap
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acity, which of the following kinds of information would she be interested in?
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A) Economic data nw
B) Financial data nw
C) Nonfinancial data nw
D) Financial, economic, and nonfinancial data
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6) All of the following are features of managerial accountingexcept:
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A) information nw is provided primarily to insiders such as managers.
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B) information nw includes economic and non-financial data as well as financial data.
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C) information nw is characterized by objectivity, reliability, consistency, and accuracy.
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D) information nw is reported continuously with a present or future orientation.
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7) Choose the answer that isnot a distinguishing characteristic of financial account
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ing information.
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A) It is
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B) It is
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C) It is
nw more concerned with financial data than physical or economic data.
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D) It is
nw more highly regulated than managerial accounting information.
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3
, 8) Managerial accounting information is limited or restricted by which of the follo
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wing authorities or principles?
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A) Securities and Exchange Commission
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B) Generally Accepted Accounting Principles
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C) Managerial Accounting Standards Board
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D) Value-Added Principle nw
9) Select theincorrect statement regarding the relationship between type of user and typ
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e of information.
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A) Middle managers need more nonfinancial, or operational data than do se
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nior executives.
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B) Assembly line supervisors need more immediate feedback on performance than
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do senior executives.
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C) Senior executives need less aggregated information than do lower-level managers.
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D) Senior executives use general economic information as well as financial information.
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10) Which group would use managerial accounting data of XY Company?
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A) Stockholders
B) Managers
C) Executives
D) Both managers and executives
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E) All of the groups would use managerial accounting data
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11) Which of the following is a feature of managerial accounting information?
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4
, Answers Included
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Chapter 01 10e
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1) Which of the following items are representative of managerial accounting?
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Note: Check all that apply.
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A) Financial statement in accordance with GAAP
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B) Monthly sales reports used internally to allocate funds to divisions
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C) Quarterly financial information sent to investors
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D) Audited financial statements submitted to bankers with credit application
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E) Budget projections used to make logistic decisions
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2) Which of the following costs are not included in the cost of manufacturing a product?
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Note: Check all that apply.
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A) Marketing
B) Production workers' wages nw nw
C) Factory janitor's wages
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D) CEO salarynw
E) Depreciation on manufacturing equipment
nw nw nw
3) Which of the following is considered a downstream cost?
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Note: Check all that apply.
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A) Research and development nw nw
B) Production wages nw
C) Advertising cost nw
D) Warranty cost nw
E) Cost of internet in manufacturing plant
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4) Which of the following are examples of inventory holding costs?
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Note: Check all that apply.
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2
, A) Cost of warehouse space
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B) Cost of shipping inventory to customers
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C) Research and development cost
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D) Cost of supervising inventory
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E) Inventory spoilage cost nw nw
5) Ashley Bradshaw is the manager of one department in a large store. In this cap
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acity, which of the following kinds of information would she be interested in?
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A) Economic data nw
B) Financial data nw
C) Nonfinancial data nw
D) Financial, economic, and nonfinancial data
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6) All of the following are features of managerial accountingexcept:
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A) information nw is provided primarily to insiders such as managers.
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B) information nw includes economic and non-financial data as well as financial data.
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C) information nw is characterized by objectivity, reliability, consistency, and accuracy.
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D) information nw is reported continuously with a present or future orientation.
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7) Choose the answer that isnot a distinguishing characteristic of financial account
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ing information.
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A) It is
nw global information that reflects the performance of the whole company.
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B) It is
nw focused primarily on the future.
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C) It is
nw more concerned with financial data than physical or economic data.
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D) It is
nw more highly regulated than managerial accounting information.
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3
, 8) Managerial accounting information is limited or restricted by which of the follo
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wing authorities or principles?
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A) Securities and Exchange Commission
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B) Generally Accepted Accounting Principles
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C) Managerial Accounting Standards Board
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D) Value-Added Principle nw
9) Select theincorrect statement regarding the relationship between type of user and typ
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e of information.
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A) Middle managers need more nonfinancial, or operational data than do se
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nior executives.
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B) Assembly line supervisors need more immediate feedback on performance than
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do senior executives.
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C) Senior executives need less aggregated information than do lower-level managers.
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D) Senior executives use general economic information as well as financial information.
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10) Which group would use managerial accounting data of XY Company?
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A) Stockholders
B) Managers
C) Executives
D) Both managers and executives
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E) All of the groups would use managerial accounting data
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11) Which of the following is a feature of managerial accounting information?
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4