105 test bank for managerial accounting jiambalvo 5th edition

Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Free Test Bank with Answers for Accounting Information Systems 1st Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Intermediate Accounting Principles and Analysis 2nd Test Bank with Answers for Financial Accounting An Introduction. Free Test Bank with Answers for Auditing and Assurance Services Understandin Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Financial Accounting An Introduction to Concepts Methods and Uses Test Bank with Answers for Advanced Accounting 12th Edition Test Bank with Answers for Auditing A Business Risk Approach 8th Edition Free Test Bank for Management Accounting with Answers Ngân hàng câu hỏi trắc nghiệm Hệ thống thông tin kế toán, Ngân hàng câu hỏi kèm đáp án đề trắc nghiệm Tài chính kế toán, đề trắc nghiệm Quản trị kế toán, kế toán nâng cao, Đề trắc nghiệm có đáp án Tài chính kế toán, Kế toán kiểm toán, kế toán quản trji Test Bank for Managerial Accounting with Answers Đề trắc nghiệm kế toán, trắc nghiệm tài chính, Test bank for Accounting, Test bank with Answer, Test Bank Financial Accounting

105 Test Bank for Managerial Accounting Jiambalvo 5th Edition

Multiple Choice Questions - Part 1

Which of the following is likely to be a noncontrollable cost of a

department supervisor?

1 A Labor in the department

2 B Materials used in the department

3 C Insurance on the plant

4 D Overtime premium pay earned by those working in the department

A cost which is directly traceable to a product, activity, or

A sunk cost is a cost

1 A expected to be incurred in the future which is not relevant to present decisions.

2 B incurred in the current period which changes with changes in production activity.

3 C incurred in the current period which remains constant even though activity changes.

4 D incurred in the past that is not relevant for future decisions.

Costs incurred in the past that are not incremental to present

Which of the following is a difference between financial

accounting and managerial accounting?

1 A Managerial accounting is primarily concerned with reporting the past, while financial accounting is more concerned with future decisions that external users may need to make.

2 B Managerial accounting uses monetary and nonmonetary information, whereas financial accounting reports monetary information.

3 C Managerial accounting is primarily concerned with providing information for external users while financial accounting is concerned with internal users.

4 D Financial accounting is rather detailed, while managerial accounting is more

summarized.

Sunk costs

1 A can be incremental or not incremental, depending on the decision to be made.

2 B include all incremental costs to management decisions.

3 C are costs that cannot be directly traded to a product, activity, or department.

4 D None of these answer choices are correct.

Which of the following is most likely to be a fixed cost?

1 A Cost of wheels for a lawn mower manufacturer

2 B Rent on a factory building

3 C Cost of labor for cashiers at a retail store

4 D Supplies used by the housekeeping staff that cleans hotel rooms

Which one of the following is the last step in the planning and

control process?

1 A Implement a plan.

2 B Construct a plan.

3 C Make decisions based on the evaluation of the results.

4 D Compare actual results to the planned results.

Which of the following is a direct cost in relation to the cost of

teaching the managerial accounting course in a college?

1 A The cost of the paper that is given as handouts in the class

2 B The cost of the electricity to light the classroom

3 C The cost of the registration system

4 D The cost of the financial aid department of the college

Performance reports often compare current performance with

1 A a competing company’s performance.

2 B shareholders’ expected level of performance.

3 C industry standards.

4 D performance in a prior period or budgeted performance.

Which of the following statements regarding direct and indirect

costs is true?

1 A Direct costs are always variable and indirect costs are always fixed.

2 B Sunk costs are always direct, and opportunity costs are always fixed.

3 C The distinction between a direct and indirect cost depends on the product, activity,

or department to which the cost pertains.

4 D If a cost is indirect to a department within a plant, it will also be indirect for the plant

as a whole.

The goal of managerial accounting is to provide information

that managers need for

1 A planning, control, and financial reporting.

2 B control, evaluation, and financial reporting.

3 C planning, control, and decision making.

4 D preparing reports for external users.

Bagel Time produced and sold 2,500 bagels last month and

incurred fixed costs totaling $8,000 If production and sales are expected to decrease by 10% next month, which

of the following statements is true?

1 A Total fixed costs will increase.

2 B Total fixed costs will decrease.

3 C Fixed cost per unit will increase.

4 D Fixed cost per unit will decrease.

Which of the following is not a reason that current period

performance results may differ from the company’s

budget for that period?

1 A The plan may not have been followed properly.

2 B The plan may not have been well thought-out.

3 C Changing circumstances may have made the plan out of date.

4 D All of the above are reasons that actual results may differ from the company’s plan.

Opportunity costs are

1 A considered to be fixed costs in the short-term.

2 B another term for sunk costs.

3 C costs that are controlled by most effective managers.

4 D the value of benefits forgone when one decision alternative is selected over another.

A company has a cost that is $3.00 per unit at a volume of 9,000

units and $3.00 per unit at a volume of 11,000 units What type of cost is this?

1 A Fixed

2 B Variable

3 C Sunk

4 D Noncontrollable

When using management by exception, a difference between

actual costs and budgeted costs

1 A should be investigated if the amount is large.

2 B indicates that the planned cost was poorly estimated.

3 C indicates that the manager is doing a poor job.

4 D should be ignored if it increases profit.

Which of the following statements regarding fixed costs is

true?

1 A When production increases, fixed cost per unit increases.

2 B When production decreases, total fixed costs decrease.

3 C When production increases, fixed cost per unit decreases.

4 D When production decreases, total fixed costs increase.

Wilson Company’s managers investigate departures from the

budget that appear to be significant What principle is being followed?

1 A Small amounts do not matter

2 B Management by exception

3 C Incremental analysis

4 D You get what you measure

Variable cost per unit

1 A increases when the number of units produced increases.

2 B does not change when the number of units produced increases.

3 C decreases when the number of units produced increases.

4 D decreases when the number of units produced decreases.

Managerial accounting stresses accounting concepts and

procedures that are relevant to preparing reports for

1 A investors and banks.

2 B internal users of accounting information.

3 C shareholders and creditors.

4 D the Securities and Exchange Commission (SEC).

Which of the following is a benefit given up when one decision

alternative is selected over another?

1 A Sunk cost

2 B Controllable cost

3 C Opportunity cost

4 D Incremental cost

Kilwin’s Candies produced and sold 600 boxes of chocolate

covered popcorn last month and had total variable costs

of $2,100 that reflected the costs of chocolate and

popcorn (ingredients) Each box of popcorn sells for

$12.00 If production and sales are expected to increase

by 10% next month, which of the following statements is true?

1 A Total variable costs are expected to be $1,785

2 B Variable cost per unit is expected to be $3.50

3 C The incremental cost per unit is costs expected to be $0.35

4 D Unit variable costs are expected to be $2.10

The financial plans prepared by managerial accountants are

1 A is primarily directed at external users of accounting information.

2 B is required by taxing authorities such as the IRS.

3 C must follow GAAP.

4 D focuses on future performance.

Which one of the following is most likely to make use of Ralston

Enterprises’ managerial accounting information?

1 A The IRS

2 B An individual contemplating an investment in Ralston Enterprises

3 C A company that is one of Ralston’s main suppliers

4 D The production manager of Ralston’s plant in Georgia

Which of the following costs will change when the level of

business activity changes?

1 A Total fixed costs

2 B Variable cost per unit

3 C A company’s total costs

4 D Sunk cost

Which one of the following is true as it relates to the

management function of control?

1 A It is achieved by evaluating the performance of managers.

2 B It is achieved by evaluating the operations for which a manager is responsible.

3 C It is necessary only when performance is less than expected.

4 D It is achieved by evaluating the performance of managers and the operations for which they are responsible.

The fundamental difference between managerial and financial

accounting is that

1 A all financial accounting information is audited by Certified Public Accountants

whereas managerial accounting information is audited by the IMA.

2 B managerial accounting is concerned principally with budgets, whereas financial accounting is concerned with a wider range of the organization’s activities.

3 C managerial accounting provides information for decision-makers within the

organization, whereas financial accounting provides information for individuals and institutions external to the organization.

4 D financial accounting information follows U.S Generally Accepted Accounting

Principles, whereas managerial accounting information generally follows rules set forth

by the Institute of Management Accountants.

You own a car and are trying to decide whether to trade it in and

buy a new car Which of the following costs is an

opportunity cost in this situation?

1 A The trip to Europe that you will not be able to take if you buy the car

2 B The cost of the car you are trading in

3 C The cost of toothpaste and soap that you need for the next few months

4 D The cost of your meals for the last week

A retailer purchased some trendy clothes that have gone out of

style and must be marked down to 60% of the original selling price in order to be sold Which of the following is

a sunk cost in this situation?

1 A The current selling price

2 B The original selling price

3 C The original purchase price

4 D The anticipated profit

64 Free Test Bank for Managerial Accounting 5th Edition

by Jiambalvo Multiple Choice Questions - Part 2

The organization which administers the Certificate in

Management Accounting program is the

1 A GAAP.

2 B SCM.

3 C CRM.

4 D IMA.

Supply Chain Management (SCM) systems

1 A computerize inventory control and production planning.

2 B organize activities between a company and its suppliers.

3 C automate customer service and support.

4 D allow customers to track their purchase as it is being produced.

Which of the following would most likely be a Customer

Relationship Management System component?

1 A A system allowing customers to do online banking.

2 B A system that prepares a master production schedule.

3 C A system that links the company’s suppliers electronically to its databases.

4 D A system that manages human resources.

Which of the following terms involves calculating the difference

in revenue and the difference in cost between decision alternatives?

1 A Budgeting production

2 B Incremental analysis

3 C Profit planning

4 D Systems development

The Institute of Management Accountants (IMA)

1 A is the professional organization of managerial accountants.

2 B administers the comprehensive examination which must be passed before a person can become a CMA.

3 C has developed a set of standards of ethical conduct and maintains an ethics hotline.

4 D All of these answer choices are correct.

Which of the following should be considered when making

ethical decisions?

1 A What is right?

2 B What is standard practice?

3 C Is the company’s control system is able to detect an irregularity?

4 D All of these answer choices are correct.

Which of the following is not usually a responsibility of the

controller?

1 A Preparing budgets and performance reports

2 B Filing tax returns

3 C Managing cash and marketable securities

4 D Providing information for management decisions

Which of the following statements regarding performance

measures is true?

1 A GAAP requires performance measures for all employees.

2 B Companies must select from performance measures published by its own industry when deciding how they want to assess performance.

3 C Employees tend to direct their attention to what is measured and may neglect what

is not measured.

4 D Companies need to place emphasis on a single performance measure so

employees know what to expect.

Which of the following skills are needed by those who desire a

high-level career in management accounting?

1 A Written and oral communication skills

2 B Interpersonal skills

3 C Knowledge of the industry in which their firm competes

4 D All of these answer choices are correct.

In a period when anticipated production is 5,000 units, budgeted

variable costs are $75,000 and budgeted fixed costs are

$24,000 If 5,600 units are actually produced, what is the expected total cost?

1 A $110,600

2 B $84,000

3 C $108,000

4 D $88,394

Which of the following is one of the questions you should ask

when faced with an ethical dilemma?

1 A Will I get caught?

2 B What decisions alternatives are available?

3 C Are the actions illegal?

4 D How big is the effect on the company’s profit?

Flash Eyes sells mascara In June, it produced and sold 10,000

tubes of mascara Total variable costs were $21,000 and fixed costs totaled $24,000 Which of the following

statements is correct if, Flash Eyes produced and sold 9,000 units in July?

1 A Fixed cost per unit will be $2.67

2 B Total fixed costs will be $21,600

3 C Variable costs in total will be $40,500

4 D Variable costs per unit will be $2.33

Which one of the following will most likely influence the actions

Vita Boost Pets produces a line of cat food In August, it

produced and sold 1,000 bags of food Total fixed costs were $19,000 In September, it produced 2,000 bags of food Which of the following statements is true for

September?

1 A Total fixed costs will be $38,000.

2 B Total fixed costs will be $9,500

3 C Fixed cost per unit will be $19.00.

4 D Fixed costs per unit will be $9.50.

Triatt Resort has 200 rooms Each room rents at $130 per night

and variable costs total $42 per room per night of

occupancy The fixed costs total $18,700 per month If Triatt is able to increase occupancy from 70% to 80%, by how much will total costs increase per day during June?

1 A $840

2 B $2,710

3 C $1,870

4 D $1,760

Dent Lab Car Repair projects variable labor costs of $21,500 in

July when 8,600 units are produced If production is

expected to drop to 8,000 units in August, what is the

expected labor cost in August?

1 A $21,500

2 B $20,000

3 C $23,113

4 D $20,900

Variable cost per unit is budgeted to be $8.00 and fixed cost per

unit is budgeted to be $5.00 in a period when 4,000 units are produced If production is actually 5,100 units, what is the expected total cost of the units produced?

1 A $52,000

2 B $60,800

3 C $66,300

4 D $40,800

Rincon Gifts had the following costs in May when 400 ceramic

pots were produced: materials, $4,200; hourly labor,

$1,600; depreciation, $800; rent, $700; and other fixed costs, $500 If the production level changes to 500 units, how much will the total costs be?