Test Bank - Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition (Hilton, 2023), Chapter 1-17 | All Chapters & Appendices

TEST BANK

Managerial Accounting: Creating Value in
a Dynamic Business Environment
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Ronald W. Hilton and David E. Platt
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13th Edition
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, TABLE OF CONTENTS
Managerial Accounting: Creating Value in a Dynamic Business Environment (13th Edition)
Authors: Ronald Hilton and David Platt
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ISBN: 9781264444007

Chapter 1: The Changing Role of Managerial Accounting in a Dynamic Business Environment
Chapter 2: Basic Cost Management Concepts
Chapter 3: Product Costing and Cost Accumulation in a Batch Production Environment
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Chapter 4: Process Costing and Hybrid Product-Costing Systems
Chapter 5: Activity-Based Costing and Management
Chapter 6: Activity Analysis, Cost Behavior, and Cost Estimation
Chapter 7: Cost-Volume-Profit Analysis
Chapter 8: Variable Costing and the Measurement of ESG and Quality Costs
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Chapter 9: Financial Planning and Analysis: The Master Budget
Chapter 10: Standard Costing and Analysis of Direct Costs
Chapter 11: Flexible Budgeting and the Management of Overhead and Support Activity Costs
Chapter 12: Responsibility Accounting and the Balanced Scorecard
Chapter 13: Investment Centers and Transfer Pricing
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Chapter 14: Decision Making: Relevant Costs and Benefits
Chapter 15: Target Costing and Cost Analysis for Pricing Decisions
Chapter 16: Capital Expenditure Decisions
Chapter 17: Allocation of Support Activity Costs and Joint Costs
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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.
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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.
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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
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B) Advertising costs, holding costs, and shortage costs
C) Ordering costs, holding costs, and shortage costs
D) Ordering costs, shipping costs, and shortage costs
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E) Shipping costs, holding costs, and shortage costs


3) Which one of the following is true of a just-in-time (JIT) system?
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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
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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
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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
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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
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C) Reducing the number of vendors
D) Making less frequent payments
E) All of the answers are correct
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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.
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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.
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7) Inventory holding costs would typically include all of the following except:
A) insurance.
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B) theft.
C) transportation.
D) obsolescence.
E) warehouse rent.
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8) Which of the following is classified as an inventory shortage cost?
A) Purchase order preparation
B) Production disruption
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C) Lost sales and lost customers
D) Spoilage
E) Both production disruption and lost sales and lost customers
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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.
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E) total annual inventory costs are minimized, and ordering costs exceed holding costs.




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