1. Management accounting reports might include information about:
net income for the year on budgeted income statement.
total assets on budgeted balance sheet.
All of the above are correct.
2. Which of the following types of information are used in management accounting?
information focused on the long term
All of these are correct.
3. The person MOST likely to use management accounting information is a(n):
banker evaluating a credit application
shareholder evaluating a stock investment
governmental taxing authority
assembly department supervisor
4. The person MOST likely to use ONLY financial accounting information is a:
factory shift supervisor
vice president of operations
5. A weekly report comparing machine time used to available machine time is information MOST useful to:
a front-line employee
the manager of operations
the chief executive officer
the accounting department
6. Product costs are expensed on the income statement when:
raw materials for the product are purchased
raw materials are requisitioned for the product
the product completes the manufacturing process
the product is sold
7. The cost of inventory reported on the balance sheet may include the cost of all the following EXCEPT:
wages of the plant supervisor
depreciation of the factory equipment
parts used in the manufacturing process
8. The plans of management are often expressed formally in:
9. For a manufacturing company, what type of position (line or staff) is each of the following
a. Manager of a Data Processing Department
b. Manager of a Production Department
10. Which of the folloiwng is NOT one of the five steps in the lean thinking model discussed in the text
Continuously pursue perfection in the business process.
Identify value in specific products/services.
Implement an enterprise system.
Create a pull system that responds to customer orders.
11. The five step framework used to guide Six Sigma improvement efforts includes all of the following EXCEPT:
12. Which of the following is NOT one of the Institute of Management Accountants’ five Standards of Ethical Conduct?
13. 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 period cost.
14. All of the following are examples of product costs except:
depreciation on the company’s retail outlets.
salary of the plant manager.
insurance on the factory equipment.
rental costs of the factory facility.
15. The following costs were incurred in July:
Direct materials $35,000
Direct labor $13,000
Manufacturing overhead $15,000
Selling expense $14,000
Administrative expenses $30,000
Prime costs during the month totaled:
16. In July direct labor was 40% of conversion cost. If the manufacturing overhead cost for the month was $34,000 and the direct materials cost was $23,000, the direct labor cost was:
17. The following data are for a recent period’s operations:
Beginning finished goods inventory $150,475
Ending finished goods inventory $145,750
Gross margin $120,000
The cost of goods manufactured was: