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

1

,1) Which of the following items are representative of managerial accounting?
0r 0r 0r 0r 0r 0r 0r 0r 0r



Note: Check all that apply.
0r 0r 0r 0r




A) Financial statement in accordance with GAAP
0r 0r 0r 0r 0r



B) Monthly sales reports used internally to allocate funds to divisions
0r 0r 0r 0r 0r 0r 0r 0r 0r



C) Quarterly financial information sent to investors
0r 0r 0r 0r 0r



D) Audited financial statements submitted to bankers with credit application
0r 0r 0r 0r 0r 0r 0r 0r


E) Budget projections used to make logistic decisions
0r 0r 0r 0r 0r 0r




2) Which of the following costs are not included in the cost of manufacturing a product?
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



Note: Check all that apply.
0r 0r 0r 0r




A) Marketing
B) Production workers' wages 0r 0r



C) Factory janitor's wages 0r 0r



D) CEO salary 0r


E) Depreciation on manufacturing equipment 0r 0r 0r




3) Which of the following is considered a downstream cost?
0r 0r 0r 0r 0r 0r 0r 0r



Note: Check all that apply.
0r 0r 0r 0r




A) Research and development 0r 0r



B) Production wages 0r


C) Advertising cost 0r


D) Warranty cost 0r



E) Cost of internet in manufacturing plant
0r 0r 0r 0r 0r




4) Which of the following are examples of inventory holding costs?
0r 0r 0r 0r 0r 0r 0r 0r 0r



Note: Check all that apply.
0r 0r 0r 0r




2

, A) Cost of warehouse space 0r 0r 0r



B) Cost of shipping inventory to customers
0r 0r 0r 0r 0r



C) Research and development cost 0r 0r 0r


D) Cost of supervising inventory
0r 0r 0r



E) Inventory spoilage cost 0r 0r




5) Ashley Bradshaw is the manager of one department in a large store. In this capacity,
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



which of the following kinds of information would she be interested in?
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r




A) Economic data 0r



B) Financial data 0r


C) Nonfinancial data 0r



D) Financial, economic, and nonfinancial data 0r 0r 0r 0r




6) All of the following are features of managerial accountingexcept:
0r 0r 0r 0r 0r 0r 0r 0r




A) information is provided primarily to insiders such as managers.
0r 0r 0r 0r 0r 0r 0r 0r



B) information includes economic and non-financial data as well as financial data.
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



C) information is characterized by objectivity, reliability, consistency, and accuracy.
0r 0r 0r 0r 0r 0r 0r 0r


D) information is reported continuously with a present or future orientation.
0r 0r 0r 0r 0r 0r 0r 0r 0r




7) Choose the answer that isnot a distinguishing characteristic of financial accounting
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



information.
0r




A) It is global information that reflects the performance of the whole company.
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



B) It is focused primarily on the future.
0r 0r 0r 0r 0r 0r



C) It is more concerned with financial data than physical or economic data.
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



D) It is more highly regulated than managerial accounting information.
0r 0r 0r 0r 0r 0r 0r 0r




3

, 8) Managerial accounting information is limited or restricted by which of the following
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



authorities or principles?
0r 0r 0r




A) Securities and Exchange Commission 0r 0r 0r



B) Generally Accepted Accounting Principles
0r 0r 0r


C) Managerial Accounting Standards Board 0r 0r 0r


D) Value-Added Principle 0r




9) Select theincorrect statement regarding the relationship between type of user and type o
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



f information.
0r




A) Middle managers need more nonfinancial, or operational data than do senior
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r


0r executives.
B) Assembly line supervisors need more immediate feedback on performance than do
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r



0r senior executives.
0r



C) Senior executives need less aggregated information than do lower-level managers.
0r 0r 0r 0r 0r 0r 0r 0r 0r


D) Senior executives use general economic information as well as financial information.
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r




10) Which group would use managerial accounting data of XY Company?
0r 0r 0r 0r 0r 0r 0r 0r 0r




A) Stockholders
B) Managers
C) Executives
D) Both managers and executives
0r 0r 0r


E) All of the groups would use managerial accounting data
0r 0r 0r 0r 0r 0r 0r 0r




11) Which of the following is a feature of managerial accounting information?
0r 0r 0r 0r 0r 0r 0r 0r 0r 0r




4