TEST BANK FOR Managerial Accounting: Creating Value in a Dynamic Business Environment, 13th Edition by Ronald Hilton and David Platt ISBN: 978-1264445820 COMPLETE GUIDE ALL CHAPTERS COVERED 100% VERIFIED A+ GRADE ASSURED!!!!NEW LATEST UPDATE!!!!!

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,Table of Contents
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
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
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
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


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 Envir
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onment, 13th Edition by Ronald Hilton st st st st st




Appendix III st




1) The EOQ model is a mathematical tool for determining the order quantity that:
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A) maximizes the costs of ordering and holding inventory. st st st st st st st



B) equals the costs of ordering and holding inventory. st st st st st st st




C) minimizes the costs of ordering and holding inventory. st st st st st st st
All Chapters st




D) has no effect on the costs of ordering and holding inventory.
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E) none of these answers are correct.
Answers Included
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2) Inventory decisions involve a delicate balance between which of the following classes of co
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sts?
A) Ordering costs, advertising costs, and shipping costs st st st st st st




B) Advertising costs, holding costs, and shortage costs st st st st st st




C) Ordering costs, holding costs, and shortage costs st st st st st st




D) Ordering costs, shipping costs, and shortage costs st st st st st st




E) Shipping costs, holding costs, and shortage costs st st st st st st




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
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B) Inventory of raw materials and parts are kept as a buffer st st st st st st st st st st




C) Inventory of partially completed parts are kept as a buffer st st st st st st st st st




D) Finished goods are kept as a buffer st st st st st st




E) None of the answers are correct st st st st st




4) Which one of the following is true of Economic Order Quantity (EOQ)?
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A) The EOQ approach takes the view that some inventory is necessary in order to opt
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imize the order quantity st st st




B) Is calculates as the square root of the following: (2 × annual requirement × cost per ord
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er) ÷ annual holding cost per unit
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C) The graphical approach is one method of calculating EOQ
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D) A mathematical tool for determining the order quantity that minimizes the cost of or
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dering and holding inventory st st st




E) All of the answers are correct
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, 5) Which of the following is a way that JIT efficiencies are achieved?
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A) Negotiating long-term supply agreements st st st




B) Eliminating inspections st




C) Reducing the number of vendors st st st st




D) Making less frequent payments st st st




E) All of the answers are correct
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6) Inventory holding costs typically include:
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A) clerical costs of purchase-order preparation.
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B) costs of deterioration, theft, or spoilage.
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C) costs associated with lost sales to customers.
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D) forgone interest on money tied up in inventory. st st st st st st st




E) both costs of deterioration, theft, or spoilage and forgone interest on money tied up in inv
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entory.


7) Inventory holding costs would typically include all of the following except:
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A) insurance.
B) theft.
C) transportation.
D) obsolescence.
E) warehouse rent. st




8) Which of the following is classified as an inventory shortage cost?
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A) Purchase order preparation st st




B) Production disruption st




C) Lost sales and lost customersst st st st




D) Spoilage
E) Both production disruption and lost sales and lost customers
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9) At the economic order quantity:
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A) total annual inventory costs, holding costs, and ordering costs are all minimized.
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B) total annual inventory costs and holding costs are minimized.
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C) total annual inventory costs are minimized, and holding costs equal ordering costs.
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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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