Fundamental Managerial Accounting Concepts Test Bank 10th Edition by Edmonds – Master Copy with Verified Answers (2025)

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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 zx zx



C) Factory janitor's wages zx zx



D) CEO salary zx


E) Depreciation on manufacturing equipment zx zx zx




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 zx zx



B) Production wages zx


C) Advertising cost zx


D) Warranty cost zx



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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, A) Cost of warehouse space zx zx zx



B) Cost of shipping inventory to customers
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C) Research and development cost zx zx zx


D) Cost of supervising inventory
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E) Inventory spoilage cost zx zx




5) Ashley Bradshaw is the manager of one department in a large store. In this capacit
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y, which of the following kinds of information would she be interested in?
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A) Economic data zx



B) Financial data zx


C) Nonfinancial data zx



D) Financial, economic, and nonfinancial data zx zx zx zx




6) All of the following are features of managerial accountingexcept:
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A) information is provided primarily to insiders such as managers.
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B) information includes economic and non-financial data as well as financial data.
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C) information is characterized by objectivity, reliability, consistency, and accuracy.
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D) information is reported continuously with a present or future orientation.
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7) Choose the answer that isnot a distinguishing characteristic of financial accountin
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g information.
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A) It is global information that reflects the performance of the whole company.
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B) It is focused primarily on the future.
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C) It is more concerned with financial data than physical or economic data.
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D) It is more highly regulated than managerial accounting information.
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, 8) Managerial accounting information is limited or restricted by which of the followin
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g authorities or principles?
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A) Securities and Exchange Commissionzx zx zx



B) Generally Accepted Accounting Principles
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C) Managerial Accounting Standards Board zx zx zx


D) Value-Added Principle zx




9) Select theincorrect statement regarding the relationship between type of user and type
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of information.
zx




A) Middle managers need more nonfinancial, or operational data than do senio
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r executives.
zx



B) Assembly line supervisors need more immediate feedback on performance than d
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o 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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