TEST BANK FOR
. .
Fundamental Managerial Accounting Concepts, 10th Edition by Edmonds
. . . . . . .
Chapter 1-14
.
Answers Included .
Chapter 01 10e
. .
1) Which.of.the.following.items.are.representative.of.managerial.accounting?
Note:.Check.all.that.apply.
A) Financial.statement.in.accordance.with.GAAP
B) Monthly.sales.reports.used.internally.to.allocate.funds.to.divisions
C) Quarterly.financial.information.sent.to.investors
D) Audited.financial.statements.submitted.to.bankers.with.credit.application
E) Budget.projections.used.to.make.logistic.decisions
2) Which.of.the.following.costs.are.not.included.in.the.cost.of.manufacturing.a.product?
Note:.Check.all.that.apply.
A) Marketing
B) Production.workers'.wages
C) Factory.janitor's.wages
D) CEO.salary
E) Depreciation.on.manufacturing.equipment
3) Which.of.the.following.is.considered.a.downstream.cost?
Note:.Check.all.that.apply.
A) Research.and.development
B) Production.wages
C) Advertising.cost
D) Warranty.cost
E) Cost.of.internet.in.manufacturing.plant
4) Which.of.the.following.are.examples.of.inventory.holding.costs?
Note:.Check.all.that.apply.
, A) Cost.of.warehouse.space
B) Cost.of.shipping.inventory.to.customers
C) Research.and.development.cost
D) Cost.of.supervising.inventory
E) Inventory.spoilage.cost
5) Ashley.Bradshaw.is.the.manager.of.one.department.in.a.large.store..In.this.capacity,.whic
h.of.the.following.kinds.of.information.would.she.be.interested.in?
A) Economic.data
B) Financial.data
C) Nonfinancial.data
D) Financial,.economic,.and.nonfinancial.data
6) All.of.the.following.are.features.of.managerial.accountingexcept:
A) information.is.provided.primarily.to.insiders.such.as.managers.
B) information.includes.economic.and.non-financial.data.as.well.as.financial.data.
C) information.is.characterized.by.objectivity,.reliability,.consistency,.and.accuracy.
D) information.is.reported.continuously.with.a.present.or.future.orientation.
7) Choose.the.answer.that.isnot.a.distinguishing.characteristic.of.financial.accounting.inf
ormation.
A) It.is.global.information.that.reflects.the.performance.of.the.whole.company.
B) It.is.focused.primarily.on.the.future.
C) It.is.more.concerned.with.financial.data.than.physical.or.economic.data.
D) It.is.more.highly.regulated.than.managerial.accounting.information.
,8) Managerial.accounting.information.is.limited.or.restricted.by.which.of.the.following.aut
horities.or.principles?
A) Securities.and.Exchange.Commission
B) Generally.Accepted.Accounting.Principles
C) Managerial.Accounting.Standards.Board
D) Value-Added.Principle
9) Select.theincorrect.statement.regarding.the.relationship.between.type.of.user.and.type.of.info
rmation.
A) Middle.managers.need.more.nonfinancial,.or.operational.data.than.do.senior.exe
cutives.
B) Assembly.line.supervisors.need.more.immediate.feedback.on.performance.than.do.sen
ior.executives.
C) Senior.executives.need.less.aggregated.information.than.do.lower-level.managers.
D) Senior.executives.use.general.economic.information.as.well.as.financial.information.
10) Which.group.would.use.managerial.accounting.data.of.XY.Company?
A) Stockholders
B) Managers
C) Executives
D) Both.managers.and.executives
E) All.of.the.groups.would.use.managerial.accounting.data
11) Which.of.the.following.is.a.feature.of.managerial.accounting.information?
, A) Information.is.not.distributed.to.the.public
B) Information.reports.on.the.company.as.a.whole
C) Information.is.focused.on.the.past
D) Information.is.reported.annually
12) Select.thecorrect.statement.regarding.managerial.and.financial.accounting.
A) Users.of.managerial.accounting.information.desire.greater.aggregation.than.do.users.of.f
inancial.accounting.information.
B) Both.managerial.and.financial.accounting.use.economic.and.physical.data.in.addition.to.fi
nancial.data.
C) Financial.accounting.is.more.highly.regulated.than.managerial.accounting.
D) Timeliness.is.more.important.in.financial.accounting.than.in.managerial.accounting.
13) Which.of.the.following.most.exemplifies.the.value-added.principle?
A) An.ongoing.process.where.continuous.improvement.is.the.goal.
B) A.competitive.management.program.that.emphasizes.quality.
C) Information.gathering.and.reporting.activities.should.be.restricted.to.those.activities.that
.add.value.in.excess.of.their.cost.
D) Managerial.accounting.information.is.measured.in.economic,.physical,.and.financial
terms.
14) Which.of.the.following.costs.would.be.classified.as.a.direct.cost.for.a.company.that.prod
uces.motorcycles?
. .
Fundamental Managerial Accounting Concepts, 10th Edition by Edmonds
. . . . . . .
Chapter 1-14
.
Answers Included .
Chapter 01 10e
. .
1) Which.of.the.following.items.are.representative.of.managerial.accounting?
Note:.Check.all.that.apply.
A) Financial.statement.in.accordance.with.GAAP
B) Monthly.sales.reports.used.internally.to.allocate.funds.to.divisions
C) Quarterly.financial.information.sent.to.investors
D) Audited.financial.statements.submitted.to.bankers.with.credit.application
E) Budget.projections.used.to.make.logistic.decisions
2) Which.of.the.following.costs.are.not.included.in.the.cost.of.manufacturing.a.product?
Note:.Check.all.that.apply.
A) Marketing
B) Production.workers'.wages
C) Factory.janitor's.wages
D) CEO.salary
E) Depreciation.on.manufacturing.equipment
3) Which.of.the.following.is.considered.a.downstream.cost?
Note:.Check.all.that.apply.
A) Research.and.development
B) Production.wages
C) Advertising.cost
D) Warranty.cost
E) Cost.of.internet.in.manufacturing.plant
4) Which.of.the.following.are.examples.of.inventory.holding.costs?
Note:.Check.all.that.apply.
, A) Cost.of.warehouse.space
B) Cost.of.shipping.inventory.to.customers
C) Research.and.development.cost
D) Cost.of.supervising.inventory
E) Inventory.spoilage.cost
5) Ashley.Bradshaw.is.the.manager.of.one.department.in.a.large.store..In.this.capacity,.whic
h.of.the.following.kinds.of.information.would.she.be.interested.in?
A) Economic.data
B) Financial.data
C) Nonfinancial.data
D) Financial,.economic,.and.nonfinancial.data
6) All.of.the.following.are.features.of.managerial.accountingexcept:
A) information.is.provided.primarily.to.insiders.such.as.managers.
B) information.includes.economic.and.non-financial.data.as.well.as.financial.data.
C) information.is.characterized.by.objectivity,.reliability,.consistency,.and.accuracy.
D) information.is.reported.continuously.with.a.present.or.future.orientation.
7) Choose.the.answer.that.isnot.a.distinguishing.characteristic.of.financial.accounting.inf
ormation.
A) It.is.global.information.that.reflects.the.performance.of.the.whole.company.
B) It.is.focused.primarily.on.the.future.
C) It.is.more.concerned.with.financial.data.than.physical.or.economic.data.
D) It.is.more.highly.regulated.than.managerial.accounting.information.
,8) Managerial.accounting.information.is.limited.or.restricted.by.which.of.the.following.aut
horities.or.principles?
A) Securities.and.Exchange.Commission
B) Generally.Accepted.Accounting.Principles
C) Managerial.Accounting.Standards.Board
D) Value-Added.Principle
9) Select.theincorrect.statement.regarding.the.relationship.between.type.of.user.and.type.of.info
rmation.
A) Middle.managers.need.more.nonfinancial,.or.operational.data.than.do.senior.exe
cutives.
B) Assembly.line.supervisors.need.more.immediate.feedback.on.performance.than.do.sen
ior.executives.
C) Senior.executives.need.less.aggregated.information.than.do.lower-level.managers.
D) Senior.executives.use.general.economic.information.as.well.as.financial.information.
10) Which.group.would.use.managerial.accounting.data.of.XY.Company?
A) Stockholders
B) Managers
C) Executives
D) Both.managers.and.executives
E) All.of.the.groups.would.use.managerial.accounting.data
11) Which.of.the.following.is.a.feature.of.managerial.accounting.information?
, A) Information.is.not.distributed.to.the.public
B) Information.reports.on.the.company.as.a.whole
C) Information.is.focused.on.the.past
D) Information.is.reported.annually
12) Select.thecorrect.statement.regarding.managerial.and.financial.accounting.
A) Users.of.managerial.accounting.information.desire.greater.aggregation.than.do.users.of.f
inancial.accounting.information.
B) Both.managerial.and.financial.accounting.use.economic.and.physical.data.in.addition.to.fi
nancial.data.
C) Financial.accounting.is.more.highly.regulated.than.managerial.accounting.
D) Timeliness.is.more.important.in.financial.accounting.than.in.managerial.accounting.
13) Which.of.the.following.most.exemplifies.the.value-added.principle?
A) An.ongoing.process.where.continuous.improvement.is.the.goal.
B) A.competitive.management.program.that.emphasizes.quality.
C) Information.gathering.and.reporting.activities.should.be.restricted.to.those.activities.that
.add.value.in.excess.of.their.cost.
D) Managerial.accounting.information.is.measured.in.economic,.physical,.and.financial
terms.
14) Which.of.the.following.costs.would.be.classified.as.a.direct.cost.for.a.company.that.prod
uces.motorcycles?
