ACC 222 FINAL EXAM QUESTIONS & ANSWERS
Which one of the following items is not a management accounting function?
A) Financial Management
B) Marketing
C) Cost Accounting
D) Auditing - Answer -B
*Which one may not be considered as the type of managerial accounting report?
A) Budget and Performance Reports
B) Cost Reports
C) Inventory and Manufacturing Reports
D) Cash Flow Statement - Answer -D
*Management accountant would not be concerned with:
A) Preparing plans and forecasts for the future activities of the business
B) Focus on the segments of organizaiton
C) Must to follow IFRS reporting formats and principles
D) Prepare the reports for the internal users (internal stakeholders of the organization) -
Answer -C
If you match the activities to the management accounting functions, then which of the
following functions best describe the financing, recording, and checking activities?
A) Financial management, decision making, cost accounting
B) Financial management, cost accounting, auditing
C) Financial management, planning, cost accounting
D) Cost accounting, financial management, decision making - Answer -B
*Direct Costs:
A) are incurred to benefit a particular accounting period
B) are incurred due to specific decision
C) can be easily traced to a particular cost object
D) are the variable costs of producing a product - Answer -C
Rotonga Manufacturing Company leases a vehicle to deliver its finished products to
customers. Which of the following terms correctly describes the monthly lease
payments made on the delivery vehicle?
Direct Cost, Fixed Cost
A) Yes, Yes
B) Yes, No
C) No, Yes
D) No, No - Answer -C
*A factory supervisor's wages are classified as:
Indirect Labor, Fixed Manufacturing Overhead
, A) No, No
B) Yes, Yes
C) Yes, No
D) No, Yes - Answer -B
Which of the following statements is correct in describing manufacturing overhead?
A) Manufacturing overhead when combined with direct materials cost forms conversion
cost
B) Manufacturing overhead consists of all manufacturing cost except for prime cost
C) Manufacturing overhead is a period cost
D) Manufacturing overhead when combined with direct labor cost forms prime cost -
Answer -B
*Depreciation on a personal computer used in the marketing department of a
manufacturing company would be classified as:
A) A product cost that is fixed with respect to the company's output
B) A period cost that is fixed with respect to the company's output
C) A product cost that is variable with respect to the company's output
D) A period cost that is variable with respect to the company's output - Answer -B
*A cost incurred in the past that is not relevant to any current decision is classified as
a(n):
A) Period cost
B) Opportunity cost
C) Sunk cost
D) Differential Cost - Answer -C
*Which of the following approaches to preparing an income statement includes a
calculation of the gross margin?
Traditional Approach, Contribution Approach
A) Yes, Yes
B) Yes, No
C) No, Yes
D) No, No - Answer -B
*Costs that can be eliminated in whole or in part if a particular business segment is
discontinued are called:
A) Sunk Costs
B) Opportunity Costs
C) Avoidable Costs
D) Irrelevant Costs - Answer -C
*A joint product is:
A) Any product which consists of several parts
B) Any product produced by a company with more than one product line
C) Any product involved in a make or buy decision
Which one of the following items is not a management accounting function?
A) Financial Management
B) Marketing
C) Cost Accounting
D) Auditing - Answer -B
*Which one may not be considered as the type of managerial accounting report?
A) Budget and Performance Reports
B) Cost Reports
C) Inventory and Manufacturing Reports
D) Cash Flow Statement - Answer -D
*Management accountant would not be concerned with:
A) Preparing plans and forecasts for the future activities of the business
B) Focus on the segments of organizaiton
C) Must to follow IFRS reporting formats and principles
D) Prepare the reports for the internal users (internal stakeholders of the organization) -
Answer -C
If you match the activities to the management accounting functions, then which of the
following functions best describe the financing, recording, and checking activities?
A) Financial management, decision making, cost accounting
B) Financial management, cost accounting, auditing
C) Financial management, planning, cost accounting
D) Cost accounting, financial management, decision making - Answer -B
*Direct Costs:
A) are incurred to benefit a particular accounting period
B) are incurred due to specific decision
C) can be easily traced to a particular cost object
D) are the variable costs of producing a product - Answer -C
Rotonga Manufacturing Company leases a vehicle to deliver its finished products to
customers. Which of the following terms correctly describes the monthly lease
payments made on the delivery vehicle?
Direct Cost, Fixed Cost
A) Yes, Yes
B) Yes, No
C) No, Yes
D) No, No - Answer -C
*A factory supervisor's wages are classified as:
Indirect Labor, Fixed Manufacturing Overhead
, A) No, No
B) Yes, Yes
C) Yes, No
D) No, Yes - Answer -B
Which of the following statements is correct in describing manufacturing overhead?
A) Manufacturing overhead when combined with direct materials cost forms conversion
cost
B) Manufacturing overhead consists of all manufacturing cost except for prime cost
C) Manufacturing overhead is a period cost
D) Manufacturing overhead when combined with direct labor cost forms prime cost -
Answer -B
*Depreciation on a personal computer used in the marketing department of a
manufacturing company would be classified as:
A) A product cost that is fixed with respect to the company's output
B) A period cost that is fixed with respect to the company's output
C) A product cost that is variable with respect to the company's output
D) A period cost that is variable with respect to the company's output - Answer -B
*A cost incurred in the past that is not relevant to any current decision is classified as
a(n):
A) Period cost
B) Opportunity cost
C) Sunk cost
D) Differential Cost - Answer -C
*Which of the following approaches to preparing an income statement includes a
calculation of the gross margin?
Traditional Approach, Contribution Approach
A) Yes, Yes
B) Yes, No
C) No, Yes
D) No, No - Answer -B
*Costs that can be eliminated in whole or in part if a particular business segment is
discontinued are called:
A) Sunk Costs
B) Opportunity Costs
C) Avoidable Costs
D) Irrelevant Costs - Answer -C
*A joint product is:
A) Any product which consists of several parts
B) Any product produced by a company with more than one product line
C) Any product involved in a make or buy decision
