ACCOUNTING FOR MANAGER EXAM
Winner's Sporting Equipment manufactures sporting goods. Selected costs from the past year include the following.
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Plastics used to make products
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$151,000
|
|
Heating and lighting costs for factory
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65,000
|
|
Factory janitor wages
|
67,000
|
|
Costs of shipping to customers
|
11,000
|
|
Lubricants used in factory equipment
|
2,000
|
|
Lighting costs for sales office
|
20,000
|
|
Depreciation on factory equipment
|
23,000
|
|
Office supplies for sales office
|
6,000
|
|
Insurance costs for factory
|
13,000
|
|
Maintenance worker wages
|
99,000
|
|
Freight-in (on plastics)
|
7,500
|
|
Aluminum used to make products
|
175,000
|
|
Assembly-line worker wages
|
142,000
|
|
Salaries of salespeople
|
74,000
|
Period costs for Winner's Sporting Equipment totaled:
A. $91,000.
B. $37,000.
C. $188,000.
D. $111,000.
Indirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?
A. Direct labor
B. Direct materials
C. Manufacturing overhead
D. Prime costs
Which of the following is NOT an example of an indirect cost incurred in manufacturing automobiles?
A. Plant supervisor salary
B. Machinery depreciation in the factory
C. Plant utilities
D. Cost of the automobile engines
Communicating information fairly and objectively is an example of which ethical standard?
A. Credibility
B. Integrity
C. Competence
D. Confidentiality
Costs that remain the same among alternatives are:
A. sunk costs.
B. irrelevant costs.
C. controllable costs.
D. uncontrollable costs.
Which of the following people is most likely to use only financial accounting information?
A. Vice president of plant operations
B. Product manager
C. Plant manager
D. Bank loan officer
Lots of Stuff Company reports the following data for its first year of operation.
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Work in process inventory, beginning
|
$0
|
|
Work in process inventory, ending
|
140,000
|
|
Direct materials used
|
110,000
|
|
Direct Labor
|
115,000
|
|
Manufacturing overhead
|
185,000
|
|
Finished goods inventory, beginning
|
0
|
|
Finished goods inventory, ending
|
90,000
|
What are the total manufacturing costs?
A. $455,000
B. $410,000
C. $750,000
D. $520,000
Evaluating results against the plan is an example of which of the following management functions?
A. Planning
B. Controlling
C. Analyzing
D. Directing
Internal parties receive information about past performance from:
A. audit reports.
B. budget reports.
C. planning reports.
D. managerial accounting reports.
Which of the following describes the way in which total fixed costs behave?
A. They will decrease as production increases.
B. They will decrease as production decreases.
C. They will remain the same throughout production levels within the relevant range.
D. They will increase as production decreases.
The IMA issues which of the following certifications?
A. CMA
B. CIA
C. CFP
D. CPA
Which of the following costs could be found in work in process inventory for a candy bar manufacturer?
A. Assembly worker wages
B. Utilities for administrative offices
C. Depreciation on sales office
D. Customer order forms
__________ gathers, summarizes, and reports on the financial impact of changes to business operations.
A. Managerial accounting
B. Planning
C. Directing
D. Controlling
A wave of accounting scandals around the turn of the 21st century prompted which of the following?
A. XBRL
B. IFRS
C. SOX
D. ISO
________ is the business philosophy and a strategy of manufacturing without waste.
A. ISO 9001
B. Lean thinking
C. TQM
D. Thin manufacturing
The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?
A. Customer service
B. Marketing
C. Research and development
D. Design
The person who is directly responsible for all financial functions is the:
A. Treasurer.
B. CEO.
C. CFO.
D. COO.
Which of the following types of companies has raw materials, work in process, and finished goods inventory?
A. Retailers
B. Manufacturers
C. Wholesalers
D. Service companies