Walmart, Costco, and Dollar General are retailers that probably compete on the basis of

Walmart, Costco, and Dollar General are retailers that probably compete on the basis of

A) quality and customer service.

B) product differentiation.

C) low prices.

D) desirable locations.


Answer: C) low prices.

The management accountants in an organization probably report directly to the

A) controller.

B) treasurer.

C) chief executive officer (CEO).

B) chief financial officer (CFO).


Answer: A) Controller

Which of the following is the correct sequence in which cost management information is developed and used?

A) Business events, data, information, analysis, decisions

B) Business events, data, analysis, information, decisions

C) Business events, information, analysis, knowledge, decisions

D) Business events, data, information, knowledge, decisions


Answer: D) Business events, data, information, knowledge, decisions.

Management accounting, as defined by the IMA, uses the expertise of the management accountant to

Management accounting, as defined by the IMA, uses the expertise of the management accountant to

A) improve quality and reduce manufacturing cost.

B) implement a strategy of cost leadership or differentiation.

C) implement a tactic of customer value and shareholder value.

D) improve business performance and the life-cycle of operations.


Answer: B) implement a strategy of cost leadership or differentiation.

Which of the following documents is used as a basis for posting to the DM section of the job cost sheet?

A Purchase requisition
B material req
C Receiving report
D Purchase order
E Time Card


Answer: B

The IMA definition of management accounting states that

A) management accounting is the process of gathering, reporting, and analyzing information for management decision making.

B) management accounting is a profession that involves preparation and analysis of cost information, budgeting, and performance measurement and analysis to assist managers in decision making.

C) management accounting involves partnering in management decision making, planning, and performance measurement to assist in the formulation and implementation of an organization's strategy.

D) management accounting is a set of practices in which accountants, working within companies, help managers to make better decisions based on accurate financial information.


Answer: C) management accounting involves partnering in management decision making, planning, and performance measurement to assist in the formulation and implementation of an organization's strategy.

For which of the following businesses would the job order cost system be appropriate?

For which of the following businesses would the job order cost system be appropriate?

A auto repair shop
B crude oil refinery
C drug manufacturer
D beer distillery


Answer: A

Cost pools are:

A costs that are accumulated before being allocated to cost objects on some common basis
B costs that are relevant to decision making but irrelevant to financial reporting
C product costs that are assigned to cost objects using DL or MH
D accounts in the product life cycle from research and development to customer service


Answer: A

Which of the following documents is used as the basis for posting to the DL section of the job cost sheet?

A Purchase requisition
B material req
C Receiving report
D Purchase order
E Time Card


Answer: E

Which of the following statements are false regarding cost allocations and product costing?

Which of the following statements are false regarding cost allocations and product costing?

A It is easier to determine the individual product cost for a manufacturer than it is for a wholesaler
B In general, indirect costs are assigned, while direct costs are allocated.
A only A is false
B Only B is false
C Both A and B are false
D neither A nor B is false


Answer: C

Which of the following is not a characteristic of job costing?

A Each job is distinguishable from the other jobs
B Identical units are produced on an ongoing basis
C Job cost data are used for setting prices and bids
D It is possible to compare actual costs with estimated costs


Answer: B

Which of the following companies would most likely use job costing?

A paper manufacturer
B paint producer
C breakfast cereal maker
D advertising agency


Answer: D

When a manufacturing company has a highly automated manufacturing plant producing many different products,

When a manufacturing company has a highly automated manufacturing plant producing many different products, what is probably the most appropriate basis of applying OH costs to WIP?

A DL hours
B DL $
C Maching H
D Cost of materials


Answer: C

The basic cost flow model is:

A BB+TO=TI+EB
B BB+TO-TI=EB
C EB=BB+TI-TO
D EB-BB=TO-TI
E EB+TI-TO=BB


Answer: C

The Cost Flow Diagram includes all of the following except:

A Selling expenses
B DM
C DL
D FMOH
E VMOH


Answer: A

In a labor intensive company in which more OH is used by more highly skilled and paid ees, which activity base would be

In a labor intensive company in which more OH is used by more highly skilled and paid ees, which activity base would be most appropriate for applying OH to production?

A DL$
B DM$
C DLH
D MH
E Sales value of the product produced


Answer: A

Which of the following is NOT a data problem an analyst must watch for when estimating cost behavior?

A missing data
B Outliers
C Allocated Costs
D Depreciable Assets


Answer: D

Which of the following is the difference between variable costs and fixed costs?

A variable costs per unity fluctuate and fixed CPU remain constant
B variable CPU are fixed over the relevant range and fixed CPU are variable
C Total variable costs are variable over the relevant range and fixed in the long term, while fixed costs never change
D Variable CPU change in varying increments, while fixed CPU change in equal units
E total variable costs can be varied by mgmt, while fixed costs are uncontrollable


Answer: B

In the standard regression equation of y=a+bx, the letter y is best described at the:

In the standard regression equation of y=a+bx, the letter y is best described at the:

A independent variable
B dependent variable
C slope of the equation
D intercept of the equation


Answer: B

Which of the following statements is (are) true regarding product costing?

A individual product costs are relevant for managerial decision-making but irrelevant for preparing the financial statements
B A common decision facing managers is determining the price at which to sell their product or provide their services.
A only A is true
B only B is true
C Both A and B are true
D neither A nor B is true


Answer: B

In the cost equation TC+F+VX, V is best described as:

A costs that do not vary with changes in the activity level.
B intercept of the cost equation
C slope of the cost equation
D activity level used to estimate the dependent variable


Answer: C