Accounting 526 Midterm Exam Questions with 100% Correct Answers

Identify a true statement about the controller of an organization. a.The controller has only indirect responsibility for an organization's basic objectives. b.The controller participates in the decision-making activity of managerial accounting. c.The controller has full authority over the managers in the production areas of an organization. d.The controller is a member of the middle-level management. Correct Answer b.The controller participates in the decision-making activity of managerial accounting. Managers in line positions are the ones who: Correct Answer implement the policies framed by the top management team. An organizational chart: Correct Answer shows line and staff positions within an organization. Accountants who hold a certificate that allows them to conduct expert work to determine intentional errors and mistakes made in the financial statements are called: Correct Answer Certified Fraud Examiners. Which of the following is a certification designed to meet the specific needs of managerial accountants? Correct Answer The Certificate in Management Accounting Which of the following certifications do managerial accountants obtain? a.The Certificate in Management Accounting b.The Certificate in Public Accounting c.The Certificate in Internal Auditing d.All of these answer choices are correct. Correct Answer d.All of these answer choices are correct. Which of the following is an example of a variable cost? a.Cost of direct materials b.Factory rent c.Property tax d.Depreciation on machinery Correct Answer .Cost of direct materials Cost allocation is: Correct Answer the process of assigning indirect costs to cost objects. Which of the following costs forms a part of prime cost as well as conversion cost? a.The cost of direct materials and direct labor b.The cost of direct materials c.Manufacturing overhead d.The cost of direct labor Correct Answer d.The cost of direct labor