Finance

1) Management accounting plays a role in

a planning new products.

b evaluating operational processes.

c controlling costs.

d all of the above.

2) Management accounting, managers are more concerned with receiving information that is:

a completely objective and verifiable.

b completely accurate and precise.

c relevant, flexible, and immediately available.

d relevant, completely accurate, and precise.

3) Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?

a the cost of the hard disk drive installed in the computer.

b the cost of shipping the computer to the customer.

c the cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers.

d the cost of packaging the computer for shipment.

4) At its present level of operations, a small manufacturing firm has total variable costs equal to 65% of sales and total fixed costs equal to 20% of sales. If sales change by $1.00, operating income will change by

a $0.15

b $0.35

c $0.65

d An answer can't be determined from this information.

5) ACME company has the following production costs for May:

units produced 2,000

Direct Material $20,000

Direct Labor 4,000 hrs @ $15 per hour

Supplies $5,000

Rent $2,000

Depreciation $3,000

Supervision $8,000

In June they plan to produce 3,000 units. What is their production cost per unit for May and total production costs for June?

a $49; $140,500

b $49; $147,000

c $43; $86,000

d $43; $129,000

6. The goal of managerial accounting is to provide information that managers need for

A. planning.

B. control.

C. decision making.

D. All of the above answers are correct.

7. Shareef’s Window Company is in the process of preparing a production cost budget for August. Actual costs in July for 120 windows were:

Materials...