TEST BANK FOR FUNDAMENTAL MANAGERIAL ACCOUNTING CONCEPTS, 10TH EDITION BY THOMAS EDMONDS, CHRISTOPHER EDMONDS, MARK EDMONDS AND PHILIP OLDS
TEST BANK FOR FUNDAMENTAL MANAGERIAL ACCOUNTING CONCEPTS, 10TH EDITION BY THOMAS EDMONDS, CHRISTOPHER EDMONDS, MARK EDMONDS AND PHILIP OLDS
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Test Bank Fundamental Managerial Accounting Concepts, 10th
Edition by Edmonds - All Chapters ( 1-14 ) With Appendix A&B
Chapter 1 Management Accounting and Corporate Governance
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
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5) Ashley Bradshaw is the manager of one department in a large store. In this capacity, which 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 accounting except:
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 is not a distinguishing characteristic of financial accounting
information.
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
authorities or principles?
A) Securities and Exchange Commission
B) Generally Accepted Accounting Principles
C) Managerial Accounting Standards Board
D) Value-Added Principle
9) Select the incorrect statement regarding the relationship between type of user and type of
information.
A) Middle managers need more nonfinancial, or operational data than do senior executives.
B) Assembly line supervisors need more immediate feedback on performance than do senior
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.
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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 the correct statement regarding managerial and financial accounting.
A) Users of managerial accounting information desire greater aggregation than do users of
financial accounting information.
B) Both managerial and financial accounting use economic and physical data in addition to
financial 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 produces
motorcycles?
A) Rent of manufacturing facility that produces motorcycles.
B) Seats used in the motorcycles.
C) Wages of motorcycle assembly workers.
D) Both seats used in the motorcycles and wages of motorcycle assembly workers are correct.
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15) Which of the following is a product cost for a construction company?
A) Cost of transporting raw materials to the job site
B) Wages paid to the company's payroll clerk
C) Rent of the company's main office
D) All of these.
16) For a manufacturing company, product costs include all of the following except:
A) indirect material costs.
B) warehousing costs of finished goods.
C) direct labor costs.
D) All of these are product costs.
17) During its first year of operations, Connor Company paid $51,640 for direct materials and
$19,800 in wages for production workers. Lease payments and utilities on the production
facilities amounted to $8,800. General, selling, and administrative expenses were $9,800. The
company produced 6,800 units and sold 5,800 units for $16.80 a unit. The average cost to
produce one unit is which of the following amounts?
A) $13.24
B) $11.80
C) $10.42
D) $13.83
18) During its first year of operations, Connor Company paid $50,000 for direct materials and
$36,000 in wages for production workers. Lease payments and utilities on the production
facilities amounted to $14,000. General, selling, and administrative expenses were $16,000. The
company produced 5,000 units and sold 4,000 units for $30.00 a unit. The average cost to
produce one unit is which of the following amounts?
A) $20.00
B) $16.00
C) $18.40
D) $25.00
19) Green company incurred $58,500 in total manufacturing costs to produce 3,900 tea kettles.
The company plans to sell the tea kettles for $52 per unit. Given this information, what is the
average cost per unit?
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