Test Bank Fundamental Managerial Accounting Concepts, 10th Edition by Edmonds
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1
, 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 sx sx
C) Factory janitor's wages sx sx
D) CEO salary sx
E) Depreciation on manufacturing equipment sx sx sx
3) Which of the following is considered a downstream cost?
sx sx sx sx sx sx sx sx
Note: Check all that apply.
sx sx sx sx
A) Research and development sx sx
B) Production wages sx
C) Advertising cost sx
D) Warranty cost sx
E) Cost of internet in manufacturing plant
sx sx sx sx sx
4) Which of the following are examples of inventory holding costs?
sx sx sx sx sx sx sx sx sx
Note: Check all that apply.
sx sx sx sx
2
, A) Cost of warehouse space sx sx sx
B) Cost of shipping inventory to customers
sx sx sx sx sx
C) Research and development cost sx sx sx
D) Cost of supervising inventory
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E) Inventory spoilage cost sx sx
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 sx
B) Financial data sx
C) Nonfinancial data sx
D) Financial, economic, and nonfinancial data sx sx sx sx
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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3
, 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 Commission sx sx sx
B) Generally Accepted Accounting Principles
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C) Managerial Accounting Standards Board sx sx sx
D) Value-Added Principle sx
9) Select theincorrect statement regarding the relationship between type of user and type o
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f information.
sx
A) Middle managers need more nonfinancial, or operational data than do senio
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r executives.
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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?
sx sx sx sx sx sx sx sx sx sx
4
sx sx sx sx sx sx sx sx sx
1
, Answers Included
sx
Chapter 01 10e
sx sx
1) Which of the following items are representative of managerial accounting?
sx sx sx sx sx sx sx sx sx
Note: Check all that apply.
sx sx sx sx
A) Financial statement in accordance with GAAP
sx sx sx sx sx
B) Monthly sales reports used internally to allocate funds to divisions
sx sx sx sx sx sx sx sx sx
C) Quarterly financial information sent to investors
sx sx sx sx sx
D) Audited financial statements submitted to bankers with credit application
sx sx sx sx sx sx sx sx
E) Budget projections used to make logistic decisions
sx sx sx sx sx sx
2) Which of the following costs are not included in the cost of manufacturing a product?
sx sx sx sx sx sx sx sx sx sx sx sx sx sx
Note: Check all that apply.
sx sx sx sx
A) Marketing
B) Production workers' wages sx sx
C) Factory janitor's wages sx sx
D) CEO salary sx
E) Depreciation on manufacturing equipment sx sx sx
3) Which of the following is considered a downstream cost?
sx sx sx sx sx sx sx sx
Note: Check all that apply.
sx sx sx sx
A) Research and development sx sx
B) Production wages sx
C) Advertising cost sx
D) Warranty cost sx
E) Cost of internet in manufacturing plant
sx sx sx sx sx
4) Which of the following are examples of inventory holding costs?
sx sx sx sx sx sx sx sx sx
Note: Check all that apply.
sx sx sx sx
2
, A) Cost of warehouse space sx sx sx
B) Cost of shipping inventory to customers
sx sx sx sx sx
C) Research and development cost sx sx sx
D) Cost of supervising inventory
sx sx sx
E) Inventory spoilage cost sx sx
5) Ashley Bradshaw is the manager of one department in a large store. In this capacit
sx sx sx sx sx sx sx sx sx sx sx sx sx sx
y, which of the following kinds of information would she be interested in?
sx sx sx sx sx sx sx sx sx sx sx sx
A) Economic data sx
B) Financial data sx
C) Nonfinancial data sx
D) Financial, economic, and nonfinancial data sx sx sx sx
6) All of the following are features of managerial accountingexcept:
sx sx sx sx sx sx sx sx
A) information is provided primarily to insiders such as managers.
sx sx sx sx sx sx sx sx
B) information includes economic and non-financial data as well as financial data.
sx sx sx sx sx sx sx sx sx sx
C) information is characterized by objectivity, reliability, consistency, and accuracy.
sx sx sx sx sx sx sx sx
D) information is reported continuously with a present or future orientation.
sx sx sx sx sx sx sx sx sx
7) Choose the answer that isnot a distinguishing characteristic of financial accountin
sx sx sx sx sx sx sx sx sx sx
g information.
sx
A) It is global information that reflects the performance of the whole company.
sx sx sx sx sx sx sx sx sx sx sx
B) It is focused primarily on the future.
sx sx sx sx sx sx
C) It is more concerned with financial data than physical or economic data.
sx sx sx sx sx sx sx sx sx sx sx
D) It is more highly regulated than managerial accounting information.
sx sx sx sx sx sx sx sx
3
, 8) Managerial accounting information is limited or restricted by which of the followin
sx sx sx sx sx sx sx sx sx sx sx
g authorities or principles?
sx sx sx
A) Securities and Exchange Commission sx sx sx
B) Generally Accepted Accounting Principles
sx sx sx
C) Managerial Accounting Standards Board sx sx sx
D) Value-Added Principle sx
9) Select theincorrect statement regarding the relationship between type of user and type o
sx sx sx sx sx sx sx sx sx sx sx sx
f information.
sx
A) Middle managers need more nonfinancial, or operational data than do senio
sx sx sx sx sx sx sx sx sx sx
r executives.
sx
B) Assembly line supervisors need more immediate feedback on performance than d
sx sx sx sx sx sx sx sx sx sx
o senior executives.
sx sx
C) Senior executives need less aggregated information than do lower-level managers.
sx sx sx sx sx sx sx sx sx
D) Senior executives use general economic information as well as financial information.
sx sx sx sx sx sx sx sx sx sx
10) Which group would use managerial accounting data of XY Company?
sx sx sx sx sx sx sx sx sx
A) Stockholders
B) Managers
C) Executives
D) Both managers and executives
sx sx sx
E) All of the groups would use managerial accounting data
sx sx sx sx sx sx sx sx
11) Which of the following is a feature of managerial accounting information?
sx sx sx sx sx sx sx sx sx sx
4