ACCT EXAM 1 - Exam 1 1. When management compares the budget...

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Exam 1 1. When management compares the budget to actual results, which of the following is being fulfilled? a. Directing b. Controlling c. Decision-making d. 2. Budgets are the way that managers can accomplish which management function? a. Planning b. Decision-making c. Control d. Hiring practices 3. Which of the following persons or groups would be LEAST likely to receive detailed managerial accounting reports? a. CEO b. Current shareholders c. Sales territory managers d. Plant managers 4. Which of the following statements is TRUE about managerial accounting information? a. It emphasizes relevance b. It is audited by CPAs c. It is prepared annually and quarterly d. It must be prepared in conformity with generally accepted accounting principles (GAAP). 5. A company ships out pre-ordered merchandise the last week of December, instead of in mid-January as originally scheduled, to ensure a profit for the year. This action could be seen as a violation of what ethical standard? a. Competence b. Confidentiality c. Integrity d. All of the above 6. Your company manufactures furniture. The cost of the cushions that are used to manufacture sofas is best described as a: a. Manufacturing overhead cost b. Variable cost c. Period cost d. Conversion cost 7. Manufacturing overhead includes a. All direct material, direct labor and administrative costs b. All manufacturing costs except direct labor c. All manufacturing costs except direct labor and direct materials d. All selling and administrative costs
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8. The one cost that would be classified as part of both prime cost and conversion costs would be: a. Indirect material b. Direct labor c. Direct material d. Indirect labor 9. Direct costs: a. Are incurred to benefit a particular accounting period b. Are incurred due to a specific decision c. Are the only variable costs of producing a product d. Can be easily traced to a particular cost object 10. Which of the following is NOT a period cost? a.
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ACCT EXAM 1 - Exam 1 1. When management compares the budget...

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