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Test Bank

Managerial Accounting: Creating Value In A Dynamic
Business Environment,
By Hilton


13th Edition




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,Table Of Content
Ch. 1 The Crucial Role Of Managerial Accounting In A Dynamic Business Environment
Ch. 2 Basic Cost Management Concepts
Ch. 3 Product Costing And Cost Accumulation In A Batch Production Environment
Ch. 4 Process Costing And Hybrid Product-Costing Systems
Ch. 5 Activity-Based Costing And Management
Ch. 6 Activity Analysis, Cost Behavior, And Cost Estimation
Ch. 7 Cost-Volume-Profit Analysis
Ch. 8 Variable Costing And The Measurement Of Esg And Quality Costs
Ch. 9 Financial Planning And Analysis: The Master Budget
Ch. 10 Standard Costing And Analysis Of Direct Costs
Ch. 11 Flexible Budgeting And Analysis Of Overhead Costs
Ch. 12 Responsibility Accounting And The Balanced Scorecard
Ch. 13 Investment Centers And Transfer Pricing
Ch. 14 Decision Making: Relevant Costs And Benefits
Ch. 15 Target Costing And Cost Analysis For Pricing Decisions
Ch. 16 Capital Expenditure Decisions
Ch. 17 Allocation Of Support Activity Costs And Joint Costs
Appendix I: The Sarbanes–Oxley Act, Internal Controls, And Management Accounting
Appendix Ii: Compound Interest And The Concept Of Present Value
Appendix Iii: Inventory Management




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,Test Bank Managerial Accounting: Creating Value In A Dynamic Business
Environment, 13th Edition By Ronald Hilton


Appendix Iii
1) The Eoq Model Is A Mathematical Tool For Determining The Order Quantity That:
A) Maximizes The Costs Of Ordering And Holding Inventory.
B) Equals The Costs Of Ordering And Holding Inventory.
C) Minimizes The Costs Of Ordering And Holding Inventory. All Chapters
D) Has No Effect On The Costs Of Ordering And Holding
Inventory.
E) None Of These Answers Are
Correct.
Answers Included


2) Inventory Decisions Involve A Delicate Balance Between Which Of The Following
Classes Of Costs?
A) Ordering Costs, Advertising Costs, And Shipping Costs
B) Advertising Costs, Holding Costs, And Shortage Costs
C) Ordering Costs, Holding Costs, And Shortage Costs
D) Ordering Costs, Shipping Costs, And Shortage Costs
E) Shipping Costs, Holding Costs, And Shortage Costs



3) Which One Of The Following Is True Of A Just-In-Time (Jit) System?
A) Jit System Uses A “Pull” Approach To Controlling Manufacturing
B) Inventory Of Raw Materials And Parts Are Kept As A Buffer
C) Inventory Of Partially Completed Parts Are Kept As A Buffer
D) Finished Goods Are Kept As A Buffer
E) None Of The Answers Are Correct



4) Which One Of The Following Is True Of Economic Order Quantity (Eoq)?
A) The Eoq Approach Takes The View That Some Inventory Is Necessary In
Order To Optimize The Order Quantity
B) Is Calculates As The Square Root Of The Following: (2 × Annual Requirement ×
Cost Per Order) ÷ Annual Holding Cost Per Unit
C) The Graphical Approach Is One Method Of Calculating Eoq
D) A Mathematical Tool For Determining The Order Quantity That Minimizes The
Cost Of Ordering And Holding Inventory
E) All Of The Answers Are Correct




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, 5) Which Of The Following Is A Way That Jit Efficiencies Are Achieved?
A) Negotiating Long-Term Supply Agreements
B) Eliminating Inspections
C) Reducing The Number Of Vendors
D) Making Less Frequent Payments
E) All Of The Answers Are Correct



6) Inventory Holding Costs Typically Include:
A) Clerical Costs Of Purchase-Order Preparation.
B) Costs Of Deterioration, Theft, Or Spoilage.
C) Costs Associated With Lost Sales To Customers.
D) Forgone Interest On Money Tied Up In Inventory.
E) Both Costs Of Deterioration, Theft, Or Spoilage And Forgone Interest On Money
Tied Up In Inventory.


7) Inventory Holding Costs Would Typically Include All Of The Following Except:
A) Insurance.
B) Theft.
C) Transportation.
D) Obsolescence.
E) Warehouse Rent.



8) Which Of The Following Is Classified As An Inventory Shortage Cost?
A) Purchase Order Preparation
B) Production Disruption
C) Lost Sales And Lost Customers
D) Spoilage
E) Both Production Disruption And Lost Sales And Lost Customers



9) At The Economic Order Quantity:
A) Total Annual Inventory Costs, Holding Costs, And Ordering Costs Are All Minimized.
B) Total Annual Inventory Costs And Holding Costs Are Minimized.
C) Total Annual Inventory Costs Are Minimized, And Holding Costs Equal Ordering Costs.
D) Total Annual Inventory Costs Are Minimized, And Holding Costs Exceed Ordering Costs.
E) Total Annual Inventory Costs Are Minimized, And Ordering Costs Exceed Holding Costs.




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