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

Test Bank Fundamental Managerial Accounting Concepts, 10th Edition by Edmon
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Answers Included km

Chapter 01 10
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e
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
km km km km km km




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.
km km km km




A) Marketing
B) Production workers' wages km km



C) Factory janitor's wages
km km



D) CEO salarykm


E) Depreciation on manufacturing equipment
km km km




3) Which of the following is considered a downstream cost?
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Note: Check all that apply.
km km km km




A) Research and development km km



B) Production wages km



C) Advertising cost km


D) Warranty cost km



E) Cost of internet in manufacturing plant
km km km km km




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



Note: Check all that apply.
km km km km




1

, A) Cost of warehouse space
km km km



B) Cost of shipping inventory to customers
km km km km km



C) Research and development cost
km km km


D) Cost of supervising inventory
km km km



E) Inventory spoilage cost km km




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



B) Financial data km


C) Nonfinancial data km



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




6) All of the following are features of managerial accountingexcept:
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A) information km is provided primarily to insiders such as managers.
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B) information km includes economic and non-financial data as well as financial data.
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C) information km is characterized by objectivity, reliability, consistency, and accuracy.
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D) information km is reported continuously with a present or future orientation.
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7) Choose the answer that isnot a distinguishing characteristic of financial accoun
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ting information.
km




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



B) It is
km focused primarily on the future.
km km km km km



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



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




2

,8) Managerial accounting information is limited or restricted by which of the follo
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wing authorities or principles?
km km km




A) Securities and Exchange Commission
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B) Generally Accepted Accounting Principles
km km km


C) Managerial Accounting Standards Board
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D) Value-Added Principle km




9) Select theincorrect statement regarding the relationship between type of user and ty
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pe of information.
km km




A) Middle managers need more nonfinancial, or operational data than do se
km km km km km km km km km km


nior executives.
km



B) Assembly line supervisors need more immediate feedback on performance than
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do senior executives.
km km km



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


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




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
km km km


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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3

, A) Information is not distributed to the public
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B) Information reports on the company as a whole
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C) Information is focused on the past
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D) Information is reported annually
km km km




12) Select thecorrect statement regarding managerial and financial accounting.
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A) Users of managerial accounting information desire greater aggregation than do u
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sers of financial accounting information.
km km km km



B) Both managerial and financial accounting use economic and physical data in addi
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tion to financial data.
km km km


C) Financial accounting is more highly regulated than managerial accounting.
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D) Timeliness is more important in financial accounting than in managerial accounting.
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13) Which of the following most exemplifies the value-added principle?
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A) An ongoing process where continuous improvement is the goal.
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B) A competitive management program that emphasizes quality.
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C) Information gathering and reporting activities should be restricted to those activ
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ities that add value in excess of their cost.
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D) Managerial accounting information is measured in economic, physical, and financial
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terms.




14) Which of the following costs would be classified as a direct cost for a compan
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y that produces motorcycles?
km km km




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