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The Institute of Management Accountants' Standards of Ethical Conduct contains a policy regarding confidentiality that requires that management accountants: a) acquired in the course of their work except when authorized by management. b) refrain from disclosing confidential information acquired in the course of their work except when authorized by management. c) refrain from disclosing confidential information acquired in the course of their work except when authorized by management, unless legally obligated to do so. d) refrain from disclosing confidential information acquired in the course of their work in all cases since the law requires them to do so.: refrain from disclosing confidential information acquired in the course of their work except when authorized by management, unless legally obligated to do so. 19. Which of the following is NOT one of the Institute of Management Accountants' five Standards of Ethical Conduct? a) Competence b) Confidentiality c) Independence d) Integrity: Independence 2.Managerial accounting is not governed by generally accepted accounting principles (GAAP).: True 20. Which of the following is not inventory? a) Raw Material b) Overhead c) Finished Good d) Work-in-process: Overhead 3.When carrying out planning activities, managers rely on feedback to ensure that the plan is actually carried out and is appropriately modified as circumstances change.: False

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15. 4.Persons occupying staff positions provide support and assistance to other parts of the organization.: True 16. 5.The controller's position in a retail company is considered a line position rather than a staff position.: False 17. 6.A strategy is a game plan that enables a company to attract customers by distinguishing itself from competitors.: True 18. 7.A customer value proposition is essentially a reason for customers to choose a company's products over its competitors' products.: True 19. 8.Companies that adopt a customer intimacy strategy are in essence saying to their target customers, "The reason you should choose us is because we understand and respond to your individual needs better than our competitors.": True 20. 9.A value chain consists of the major business functions that add value to the company's products and services.: True 21. A variable cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases.: True 22. All costs in a merchandising company are period costs.: False 23. All of the following are examples of product costs except: a) depreciation on the company's retail outlets. b) rental costs of the factory facility. c) salary of the plant manager. d) insurance on the factory equipment.: depreciation on the company's retail outlets. 24. As activity increases within the relevant range, fixed costs remain constant on a per unit basis.: False 25. Conversion cost is the sum of direct labor and manufacturing overhead.: True 26. Direct costs are often difficult to trace to the specific cost object under consideration.: False

34. The annual insurance premium for the 27. Direct costs: factory building would be a: a) can be easily traced to a particular a) fixed cost, product cost, and direct cost cost object. with regard to units of product. b) are incurred due to a specific decision. c) are the variable costs of producing a b) fixed cost, product cost, indirect cost product.

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d) are incurred to benefit a particular accounting period.: can be easily traced to a particular cost object. Factory supplies in a manufacturing plant are most likely: a) sunk costs. b) variable costs. c) excluded from product costs. d) period costs.: variable costs Inventoriable (i.e., product) costs that have become expenses can be found in: a) administrative expenses. b) selling expenses. c) cost of goods sold d) period costs.: cost of goods sold Manufacturing overhead includes: a) all direct material, direct labor and administrative costs. b) all selling and administrative costs. c) all manufacturing costs except direct labor. d) all manufacturing costs except direct labor and direct materials.: all manufacturing costs except direct labor and direct materials Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as: a) administrative expense. b) direct materials. c) a period cost. d) manufacturing overhead.: manufacturing overhead Period costs are also known as inventoriable costs.: False Prime cost is the sum of direct labor and manufacturing overhead.: False

with regard to units of product. c) fixed cost, period cost, and indirect cost with regard to units of product. d) variable cost, product cost, direct cost with regard to units of product.: fixed cost, product cost, indirect cost with regard to units of product. The cost of goods sold of a manufacturing company equals beginning finished goods inventory + cost of goods manufactured ending finished goods inventory.: True The cost of the cushions that are used to manufacture sofas is best described as a: a) variable cost. b) conversion cost. c) manufacturing overhead cost. d) period cost.: variable cost The one cost that would be classified as part of both prime cost and conversion cost would be: a) direct labor. b) direct material. c) indirect material. d) indirect labor.: direct labor The sum of all costs of manufacturing costs except direct materials is called manufacturing overhead.: False Thread used in the production of mattresses, an indirect material, is classified as manufacturing overhead.: True

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40. Which of the following is NOT a period cost? a) Salary of a billing clerk. b) Monthly depreciation of the equipment in a fitness room used by factory workers. c) Insurance on a company showroom, where current and potential customers can view new products. d) Cost of a seminar concerning tax law updates that was attended by the company's controller.: Monthly depreciation of the equipment in a fitness room used by factory workers.

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