ACC 241 Exam 1 Questions with
complete solution 2025/2026
Primary responsibilities of a manager - correct answer ✔Planning - setting goals for company and
determining how to achieve them
Directing - overseeing companies day to day operation
Controlling - evaluating results of the business operation against the plan and making adjustments to
keep company pressing towards goal
Evaluating
management accounting - correct answer ✔specializes in the study of how managers use accounting
and/or financial information in current or future business decisions. Management accountants use both
qualitative and quantitative information in their work. Unlike other accountants, they primarily report to
the internal management of a company, rather than to an external body like shareholders or tax
collection agencies.
financial accounting - correct answer ✔produces annual and quarterly consolidated financial
statements that will be used by investors and creditors to make investment and lending decisions. Must
follow GAAP (Generally Accepted Accounting Principles)
Skills of management accountants - correct answer ✔in order to become a certified management
accountant, one must pass a series of tests sponsored by the Institute of Management Accountants.
These tests examine one's knowledge in four subjects: business analysis, management accounting and
reporting, strategic management, and business applications.
IMA (Institute of Management Accountants - correct answer ✔A forum for research, practice
development, education, knowledge sharing, and the advocacy of the highest ethical and best business
practices in management accounting and finance.
, Ethical decision-making framework - correct answer ✔IMA's Statement of Ethical Professional Practice:
Maintain professional competence, preserve confidentiality of info they handle, uphold integrity &
perform duties with integrity.
Purpose and major provisions of the Sarbanes-Oxley - correct answer ✔Restore trust in publicly traded
corporations, their management, their financial statements, & their auditors.
Service, merchandising and manufacturing companies & their inventories - correct answer ✔S - sell
intangible things (medicare, coaching) generally don't have inventory
Me - Like Walmart resell tangible products. Have inventory and incur inventory related costs (ads, travel)
Ma - use labor, plant, and equipment to convert raw materials into a product. Like car companies. Have
Raw materials inventory, work in process inventory, & finished goods inventory.
Value-chain - correct answer ✔Linked set of all value-creating processes or activities that convert basic
input materials into products or services for the final consumer.
Cost Objects - correct answer ✔Anything for which cost data is desired by a manager, e.g., products,
product lines, customers, jobs, and organizational sub-units such as departments or divisions of a
company.
Direct Costs - correct answer ✔A cost that can be directly related to producing specific goods or
performing a specific
service.
Indirect Costs - correct answer ✔Manufacturing cost that cannot be easily seen in the product.
Electricity, hazard insurance on the factory building, and real estate taxes are examples of indirect costs.
Inventoriable Costs (Direct Material, Direct Labor, and Manufacturing Overhead) - correct answer ✔All
costs of a product that are recorded as an asset (inventory) under US GAAP (direct materials, direct
labor and manufacturing overhead). These costs are not expensed until the related product is sold.
complete solution 2025/2026
Primary responsibilities of a manager - correct answer ✔Planning - setting goals for company and
determining how to achieve them
Directing - overseeing companies day to day operation
Controlling - evaluating results of the business operation against the plan and making adjustments to
keep company pressing towards goal
Evaluating
management accounting - correct answer ✔specializes in the study of how managers use accounting
and/or financial information in current or future business decisions. Management accountants use both
qualitative and quantitative information in their work. Unlike other accountants, they primarily report to
the internal management of a company, rather than to an external body like shareholders or tax
collection agencies.
financial accounting - correct answer ✔produces annual and quarterly consolidated financial
statements that will be used by investors and creditors to make investment and lending decisions. Must
follow GAAP (Generally Accepted Accounting Principles)
Skills of management accountants - correct answer ✔in order to become a certified management
accountant, one must pass a series of tests sponsored by the Institute of Management Accountants.
These tests examine one's knowledge in four subjects: business analysis, management accounting and
reporting, strategic management, and business applications.
IMA (Institute of Management Accountants - correct answer ✔A forum for research, practice
development, education, knowledge sharing, and the advocacy of the highest ethical and best business
practices in management accounting and finance.
, Ethical decision-making framework - correct answer ✔IMA's Statement of Ethical Professional Practice:
Maintain professional competence, preserve confidentiality of info they handle, uphold integrity &
perform duties with integrity.
Purpose and major provisions of the Sarbanes-Oxley - correct answer ✔Restore trust in publicly traded
corporations, their management, their financial statements, & their auditors.
Service, merchandising and manufacturing companies & their inventories - correct answer ✔S - sell
intangible things (medicare, coaching) generally don't have inventory
Me - Like Walmart resell tangible products. Have inventory and incur inventory related costs (ads, travel)
Ma - use labor, plant, and equipment to convert raw materials into a product. Like car companies. Have
Raw materials inventory, work in process inventory, & finished goods inventory.
Value-chain - correct answer ✔Linked set of all value-creating processes or activities that convert basic
input materials into products or services for the final consumer.
Cost Objects - correct answer ✔Anything for which cost data is desired by a manager, e.g., products,
product lines, customers, jobs, and organizational sub-units such as departments or divisions of a
company.
Direct Costs - correct answer ✔A cost that can be directly related to producing specific goods or
performing a specific
service.
Indirect Costs - correct answer ✔Manufacturing cost that cannot be easily seen in the product.
Electricity, hazard insurance on the factory building, and real estate taxes are examples of indirect costs.
Inventoriable Costs (Direct Material, Direct Labor, and Manufacturing Overhead) - correct answer ✔All
costs of a product that are recorded as an asset (inventory) under US GAAP (direct materials, direct
labor and manufacturing overhead). These costs are not expensed until the related product is sold.
