Final Exam for Mgmt640

Note: An answer sheet is below. Upon completing the exam, transfer your answers on to the answer sheet below. To show your work, upload a Word (.doc) or Excel (.xls) attachment along with your answer sheet.

# Answer

1. B

2. B

3. C

4. C

5. D

6. D

7. C

8. D

9. D

10. A

11. D

12. D

13. C

14. C

15. B

16. D

17. A

18. C

19. D

20. B

21. B

22. B

23. D

24. B

25. B

1. To be useful to management, accounting information must

a. be prepared in accordance with GAAP.

b. have the potential to affect decisions and influence behavior.

c. be completely accurate.

d. be in the form of financial statements.

2. The primary difference between target costing and traditional cost-based pricing is

a. traditional cost-based pricing is designed to appeal to any customers, but target costing targets specific customers.

b. traditional cost-based pricing considers the market that is available for the product at the end of the process, whereas target costing considers the market at the beginning of the process.

c. product costs are irrelevant under traditional cost-based pricing, but are very important under target costing.

d. product costs are irrelevant under target costing, but are very important under traditional cost-based pricing.

3. In an activity-based cost system, an overhead cost system would first be allocated to __________, and then allocated to __________.

a. a product; an activity pool

b. a product only

c. an activity pool; a product

d. an activity pool only

4. Fast Delivery Company delivers packages and business documents for local businesses located in the Houston metropolitan area. If the company decided to adopt an ABC costing system to accumulate costs for its service, what would be an appropriate cost driver to use for the cost of the original pick-up order?

a. Number of miles to be driven in the delivery

b. Number of drivers on the truck

c. Number of packages

d. Number of orders

5. All of the following are...