Question 1

Which of the following is the formula used to compute product unit cost?

Accepted Answer

Product unit cost includes not only direct materials and direct labor, but also overhead costs associated with producing the product. Therefore, option B is the formula used to compute product unit cost.

Question 2

The fundamental way in which a company will achieve its goal is described in its

Accepted Answer

The mission statement outlines the fundamental purpose and objectives of the company and provides direction for decision-making and goal-setting. The balance sheet, income statement, and cash flow statement provide financial information and do not necessarily describe the company's fundamental way of achieving its goal. A budget is a financial plan and does not necessarily describe the company's fundamental way of achieving its goal.

Question 3

Which cost measurement method calculates product unit cost using estimates for direct materials,direct labor,and overhead?

Accepted Answer

The answer of Which cost measurement method calculates product unit...

Question 4

Which of the following is one of the integrity standards of management accountants?

Accepted Answer

Integrity standards of management accountants require them to avoid actual or apparent conflicts of interest. This means that they should avoid situations where they may have personal interests that could conflict with the interests of the company or its stakeholders. This helps to ensure that the management accountant always acts in the best interests of the company and its stakeholders, and not in their personal interest. Refraining from accepting hospitality gifts from coworkers or avoiding activities that the company does not endorse are not necessarily integrity standards, and avoiding conflicts of interest only between coworkers is too narrow of a requirement.

Question 5

Recorded costs for the DC5 Division,which manufactured 6,000 units of Product DC5 during the month,are as follows:  The per-unit cost of manufacturing Product DC5 this month is

Accepted Answer

The answer of Recorded costs for the DC5 Division,which manufactured...

Question 6

The beginning finished goods inventory of Ronald Co.was $480,125.Goods completed during the year cost $963,250.The ending finished goods inventory was dangerously low,having been reduced to $135,850.The cost of goods sold for the year for Ronald Co.was

Accepted Answer

The cost of goods sold (COGS) is calculated as: Beginning Inventory + Goods Completed - Ending Inventory. Therefore, COGS = $480,125 + $963,250 - $135,850 = $1,307,525.

Question 7

Which of the following is not one of the key questions to be addressed when preparing an accounting report?

Accepted Answer

The other three questions are all key considerations when preparing an accounting report, but the length of time for which the information remains valid is not as critical a concern.

Question 8

Which of the following questions do not dictate a managerial report's format?

Accepted Answer

The question of who should write the report does not dictate the format of the report, but rather focuses on the person responsible for producing it. The other questions all have a direct impact on the format of the report.

Question 9

Steve,the management accountant of a company,is not familiar with the concept of prudence in financial reporting.Which of the following IMA standards is Steve violating?

Accepted Answer

Steve is violating the IMA standard of Competence, which requires management accountants to maintain professional knowledge and skills, including an understanding of the concepts of prudence and conservatism in financial reporting.

Question 10

Which of the following account balances is not reported on the balance sheet?

Accepted Answer

Cost of Goods Sold is an expense account that is reported on the income statement, not the balance sheet. The other accounts listed (Materials Inventory, Manufacturing Patents, and Work in Process Inventory) are all balance sheet accounts.

Question 11

If a management accountant confides to a relative that his or her company has a confidential plan to merge with another company in the near future,the accountant has

Accepted Answer

The management accountant has violated ethical standards because by confiding to a relative about the confidential plan to merge, the relative could stand to gain personally from that information. It doesn't matter if the relative owns stock in the company or not. The management accountant's duty is to keep the information confidential and not disclose it to anyone unless it's necessary for their job.

Question 12

If the report is urgently needed,it is sometimes necessary to sacrifice accuracy in the interest of

Accepted Answer

When a report is urgently needed, it is better to prioritize timeliness over accuracy. This is because the report is needed immediately and may have a significant impact on the decision-making process. However, it is always important to try and balance both timeliness and accuracy to the extent possible. Sacrificing accuracy should never be the default option, but it may be necessary in some urgent situations.

Question 13

The credibility standard of management accountants state that management accountants must communicate information fairly and objectively.This means essentially that accountants must perform each task

Accepted Answer

The credibility standard of management accountants requires that they communicate information fairly and objectively, which means that they must provide relevant information to the recipients of their reports, both positive and negative. This ensures that the information presented is not biased and is useful for decision making. While performing their tasks as professionals with the necessary skill level and conforming to generally accepted accounting principles is important, they are not the primary focus of the credibility standard. The satisfaction of government regulators is also not the primary consideration.

Question 14

Which of the following is not a stage in the management process?

Accepted Answer

The four stages of the management process are planning, organizing, leading, and evaluating. Recording is not considered a specific stage in the management process.

Question 15

The Finished Goods Inventory and the Cost of Goods Sold for a manufacturing company for the year 2014 are as follows: May 1 Finished Goods Inventory,$470,500;May 31 Finished Goods Inventory,$125,000;Cost of Goods Sold for the year,$1,110,000.The cost of goods manufactured for the month was

Accepted Answer

The answer of The Finished Goods Inventory and the Cost...

Question 16

The following are costs for a selected period: direct materials used in production,$75,000;direct labor cost of converting materials into product,$150,000;total indirect costs of manufacturing,$45,000.What is the unit cost of manufacturing 30,000 units in this period?

Accepted Answer

First, we need to calculate the total manufacturing costs:
Total Manufacturing Costs = Direct Materials Used + Direct Labor Cost + Total Indirect Costs
Total Manufacturing Costs = $75,000 + $150,000 + $45,000 = $270,000
Then, we divide the total manufacturing costs by the number of units produced to get the unit cost:
Unit Cost = Total Manufacturing Costs / Number of Units Produced
Unit Cost = $270,000 / 30,000 units = $9.00 per unit.

Therefore, the best choice is B.

Question 17

Which of the following activities is not a part of the "perform" stage in the management process?

Accepted Answer

Calculating variances by comparing estimated and actual costs is a part of the "control" stage in the management process, not the "perform" stage. The "perform" stage involves actually carrying out the planned activities, such as producing products, managing supply chain relationships, and identifying operating activities that minimize waste.

Question 18

Which of the following contains period costs?

Accepted Answer

Period costs are those costs that are not directly related to the production process, such as selling and administrative expenses. Choices A, B, and C are all part of the cost of goods sold and are therefore considered product costs.

Question 19

Which of the following represents normal cost measurement?

Accepted Answer

Normal costing measures the cost of a product by using the actual costs of materials and labor, while applying an estimated overhead rate.

Question 20

Management accounting activities

Accepted Answer

Management accounting activities complement the management process by providing information and analysis to support decision making, planning, control, and performance evaluation. They include cost analysis, budgeting, forecasting, variance analysis, profitability analysis, and other tools and techniques that help managers and executives understand and manage the financial aspects of their organization. Financial accounting, on the other hand, focuses on reporting historical financial information to external stakeholders, such as investors, creditors, and regulators. While there is some overlap between management accounting and financial accounting, they serve different purposes and audiences.

Quiz 15: Managerial Accounting and Cost Concepts