16. Which of the Following Types of Information Are Used in Management Accounting? (Points

1. 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:
(Points : 2)
$48,000
$28,000
$107,000
$63,000
2. Which of the following is NOT one of the Institute of Management Accountants' five Standards of Ethical Conduct? (Points : 2)
Competence
Confidentiality
Independence
Integrity
3. Nonmanufacturing costs: (Points : 2)
include only fixed costs
seldom influence financial success or failure
include the cost of selling, distribution, and after-sales costs for customers
are considered by GAAP to be an element of product costs
4. All of the following are characteristics of a pull production system EXCEPT: (Points : 2)
Inventories are reduced to a minimum by purchasing raw materials and producing units only as needed to meet consumer demand.
Raw materials are released to a production far in advance of being needed to ensure no interruptions in work flows due to shortages of raw materials.
Products are completed just in time to be shipped to customers.
Manufactured parts are completed just in time to be assembled into products.
5. Which of the following descriptors refer to management accounting information? (Points : 2)
It is verifiable and reliable.
It is driven by rules.
It is prepared for shareholders.
It provides reasonable and timely estimates.
6. 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: (Points : 2)
direct materials.
a period cost.
administrative expense.
manufacturing overhead.
7. Financial accounting: (Points : 2)
focuses on the future and includes activities such as preparing next year's operating budget
must comply with GAAP (generally accepted accounting principles)
reports include detailed information on the various operating segments of the business such as product lines or departments
is prepared for the use of department heads and other employees
8. Prime costs consist of: (Points : 2)
direct materials and the variable portion of manufacturing overhead.
direct labor and indirect labor.
indirect labor and the fixed portion of manufacturing overhead.
direct labor and direct materials.
9. Shown below are a number of costs incurred last year at Mecca Publishing Co., a manufacturer of elementary school textbooks:
Solvents and cleaners used by the custodians to clean the textbook printing presses $500
Depreciation on the automobiles used by sales representatives $4,200
Fire insurance on factory building $2,000
Shipping costs on textbooks sold $3,700
What is the total of the manufacturing overhead costs above?
(Points : 2)
$500
$2,500
$6,200
$6,700
10. A daily report on the number of quality units assembled by each employee is information MOST useful to: (Points : 2)
a front-line assembly worker
the accounting department
the chief executive officer
the personnel department
11. Management accounting reports might include information about: (Points : 2)
customer complaints.
net income for the year on budgeted income statement.
total assets on budgeted balance sheet.
All of the above are correct.
12. Abel Company's manufacturing overhead is 20% of its total conversion costs. If direct labor is $38,000 and if direct materials are $47,000, the manufacturing overhead is: (Points : 2)
$152,000
$11,750
$21,250
$9,500
13. The Institute of Management Accountants (IMA): (Points : 2)
is a professional organization of management accountants
is a professional organization of financial accountants
issues standards for management accounting
Both a and c are correct.
14. ______is an example of a line position. (Points : 2)
Controller for a merchandising company
Chief financial officer of a merchandising company
Store manager for Best Buy
Human resources manager for a community college
15. A key element of any organization's strategy is identifying: (Points : 2)
its potential shareholders
its target customers
competitor's products
employee needs

16. Which of the following types of information are used in management accounting? (Points : 2)
financial information
nonfinancial information
information focused on the long term
All of these are correct.
17. One consequence of a change from a push to a properly implemented pull production system can be: (Points : 2)
an increase in work in process inventories.
an extremely difficult cultural change due to enforced idleness when demand falls below production capacity.
an increased mismatch between what is produced and what is demanded by customers.
an increase in raw materials inventories.
18. Conversion costs consist of: (Points : 2)
direct and indirect labor.
direct labor and direct materials.
direct labor and manufacturing overhead.
prime costs and manufacturing overhead.
19. The five step framework used to guide Six Sigma improvement efforts includes all of the following EXCEPT: (Points : 2)
Analyze.
Control.
Digitize.
Measure.
20. The Institute of Management Accountants' Standards of Ethical Conduct contains a policy regarding confidentiality that requires that management accountants: (Points : 2)
refrain from disclosing confidential information acquired in the course of their work except when authorized by management.
refrain from disclosing confidential information acquired in the course of their work in all situations.
refrain from disclosing confidential information acquired in the course of their work except when authorized by management, unless legally obligated to do so.
refrain from disclosing confidential information acquired in the course of their work in all cases since the law requires them to do so.