Reference no: EM132540585

Question 1: 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 2: 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 3: 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 4: 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 5: The following information pertains to Nike:

Manufacturing costs               $1,000,000

Shirts manufactured                   10,000

Beginning inventory                      0 pairs

9,500 shirts are sold during the year for $18.

What is Nike's manufacturing cost per shirt?

a. $10.00

b. $105.26

c. $100.00

d. $18.00

e. $99.5