Fundamental Managerial Accounting Concepts – 10th Edition by Thomas P. Edmonds, Christopher Edmonds & Mark A. Edmonds – Complete Test Bank for Chapters 1–14

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, 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 9I 9I



C) Factory janitor's wages 9I 9I


D) CEO salary 9I


E) Depreciation on manufacturing equipment 9I 9I 9I




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 9I 9I



B) Production wages 9I



C) Advertising cost 9I


D) Warranty cost 9I



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 9I 9I 9I



B) Cost of shipping inventory to customers
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C) Research and development cost 9I 9I 9I


D) Cost of supervising inventory
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E) Inventory spoilage cost 9I 9I




5) Ashley Bradshaw is the manager of one department in a large store. In this capacity,
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which of the following kinds of information would she be interested in?
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A) Economic data 9I



B) Financial data 9I


C) Nonfinancial data 9I



D) Financial, economic, and nonfinancial data 9I 9I 9I 9I




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 accounting
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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 following
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authorities or principles?
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A) Securities and Exchange Commission 9I 9I 9I



B) Generally Accepted Accounting Principles
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C) Managerial Accounting Standards Board 9I 9I 9I


D) Value-Added Principle 9I




9) Select theincorrect statement regarding the relationship between type of user and type o
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f information.
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A) Middle managers need more nonfinancial, or operational data than do senior
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9I executives.
B) Assembly line supervisors need more immediate feedback on performance than do
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9I 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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