Reference no: EM132540232

Question 1. Financial accounting is focused mostly on

a. controlling and planning for costs

b. reporting for external users such as creditors, shareholders, etc.

c. performing an evaluation of profitability.

d. providing information for strategic and tactical decisions.

e. providing analysis to facilitate long-term decision making.

Question 2. Which of the following is something management accountants should do to satisfy their users?

a. provide specialized information that given users can use

b. consider only financial measures

c. focus exclusively on internal users

d. follow generally accepted accounting principles

e. focus on planning more than control

Question 3. "Cost management" describes

a. the actions by managers to increase value for customers while continuously reducing and controlling costs.

b. the identification of excessive costs in the production process.

c. the satisfaction of customers' needs.

d. actions by managers to satisfy customers while maintaining current cost levels.

e. ensuring all costs remains constant.

Question 4. Management accounting

a. measures, analyzes, and reports financial and nonfinancial information to internal managers.

b. provides information about the company as a whole.

c. reports information that has occurred in the past that is verifiable and reliable.

d. provides information that is generally available only on a quarterly or annual basis.

e. must follow generally accepted accounting principles.

Question 5. Strategy specifies

a. how an organization matches its own capabilities with the opportunities in the marketplace.

b. standard procedures to ensure quality products.

c. incremental changes for improved performance.

d. the demand created for products and services.

e. that a company's financial procedures are in compliance with IFRS/ASPE.

Question 6. Which of the following statements refers to management accounting information?

a. The audience tends to be stockholders, creditors, and tax authorities.

b. The reports are generally delayed and historical.

c. There are no regulations governing the reports.

d. It primarily measures and records business transactions.

e. The reports are audited so can be used in confidence by potential investors.

Question 7. The people who rely most exclusively on the information in a company's audited financial statements are

a. senior management.

b. the accounting staff.

c. auditors.

d. operating managers.

e. shareholders.

Question 8. Which of the following is an indirect production cost?

a. materials placed into production

b. calibrating factory equipment

c. labour placed into production

d. cost of shipping a product to the customer

e. advertising

Question 9. Which one of the following items is typically an example of an indirect cost of a cost object?

a. courier charges for shipment delivery

b. direct manufacturing labour

c. manufacturing plant electricity

d. wood used for furniture manufacture

e. refundable sales tax on direct materials

Question 10. The following information pertains to Nike:

Manufacturing costs $1,000,000

Shirts manufactured 100,000

Beginning inventory 0 pairs

99,500 shirts are sold during the year for $18.

What is Nike's manufacturing cost per shirt?

a. $10.00

b. $10.05

c. $100.00

d. $18.00

e. $9.95