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Managerial accounting information must follow U.S.Generally Accepted Accounting Principles (GAAP).

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Which of the following costs would not be included in manufacturing overhead?


A) Depreciation of factory building.
B) Direct labor.
C) Indirect labor.
D) Indirect materials.
E) None of the above.

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When direct materials are placed into production,their costs are transferred to:


A) Cost of Goods Sold.
B) Cost of Goods Manufactured.
C) Finished Goods Inventory.
D) Work in Process Inventory.
E) None of the above.

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All of the following are included in Balance Sheet accounts containing product costs except:


A) Work in Process Inventory.
B) Cost of Goods Sold.
C) Raw Materials.
D) Cost of Goods Manufactured.
E) None of the above.

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Match each of the following personnel with description the that best represents their role within most organizations.

Premises
Chief financial officer
Financial accountant
Tax accountant
Internal auditor
Controller
Treasurer
Board of directors
Managerial accountant
Responses
Assists in preparing information used for decision-making within the organization.
Oversees the managerial accountant, financial accountant, and tax accountant.
Assists in preparing tax reports for governmental agencies including the Internal Revenue Service.
Responsible for confirming that controls within the company are effective in ensuring accurate financial data, and serves as an independent link with the board of directors.
Responsible for obtaining financing for the organization, projecting cash flow needs, and managing cash and short-term investments.
Assists in preparing financial information, usually in accordance with GAAP, for those outside the company.
Elected by the shareholders of the company.
Responsible for all finance and accounting functions within the organization and typically reports to the chief executive officer.

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Chief financial officer
Financial accountant
Tax accountant
Internal auditor
Controller
Treasurer
Board of directors
Managerial accountant

The term "product costs" refers exclusively to the direct labor used in the production process.

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Which of the following positions typically reports directly to the chief financial officer (CFO) ?


A) The chief executive officer.
B) The tax accountant.
C) The treasurer.
D) The financial accountant.
E) None of the above.

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According to the IMA Statement of Ethical Professional Practice,competence means that each member has a responsibility for all the following except:


A) refrain from using confidential information for unethical or illegal advantage.
B) maintaining an appropriate level of professional expertise.
C) recognizing and communicating professional limitations.
D) performing professional duties in accordance with relevant laws,regulations and technical standards.
E) None of the above.

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The Institute of Management Accountants (IMA)provides formal guidance to help in choosing ethically acceptable courses of action.

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Regardless of size,all companies have a chief financial officer (CFO)and a treasurer.

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When comparing the characteristics of financial and managerial accounting,which of the following is a focus of managerial accounting?


A) Making future projections for geographic segments of a company.
B) Focusing on users outside the organization including stockholders and creditors.
C) Using performance measures that are exclusively financial in nature.
D) Presenting overall company information in accordance with U.S.GAAP.
E) None of the above.

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The treasurer is typically in charge of all finance and accounting functions within an organization.

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Period costs are also called manufacturing costs.

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You are the new managerial accountant for a company that awards its managers with a year-end bonus based on exceeding the target operating profit presented in the yearly budget proposal.The controller tells you that she believes the company will likely have operating profit of $120 million for the year,but asks you to prepare a proposal with projected operating profit of $100 million.She notes that "after all,it is only an estimate,and it would be a shame if the managers missed their bonus again this year after all their hard work." You realize that the only way to project operating profit of $100 million is to make unrealistically low sales estimates and unrealistically high cost estimates. Using the IMA's Statement of Ethical Professional Practice,what guidelines are violated and how should you handle this situation?

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By putting together the unrealistic oper...

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Which of the following is classified as a selling expense?


A) Depreciation of computers used by the accounting staff.
B) Shipping charges for products delivered to customers.
C) Salary of the chief executive officer.
D) Factory equipment depreciation
E) None of the above.

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Enterprise Resource Planning (ERP)systems should be implemented by all organizations since ERP systems are inexpensive and lead to better decisions.

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Which of the following is a period cost?


A) Indirect materials used in production.
B) Raw materials purchased from a supplier.
C) Supplies used by accounting personnel.
D) Maintenance costs for manufacturing equipment.
E) None of the above.

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Period costs are not related to the production of goods.

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All of the following are things you can do when faced with any ethical dilemma as a managerial accountant except:


A) discuss the issue with your immediate supervisor except when you think the supervisor may be involved.
B) initiate a confidential discussion with an IMA Ethics Counselor to clarify relevant ethical issues.
C) always contact the board of directors first.
D) contact your attorney about your legal obligations and rights.
E) None of the above.

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Which of the following is classified as a general and administrative expense?


A) Salaries of sales personnel.
B) Utility costs for the production facility.
C) Salaries of production supervisors.
D) Salaries of Human Resource Department personnel.
E) None of the above.

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