1. Since indirect cost cannot be conveniently or economically traced directly to a cost pool or cost object, the management accountant will: A. B. C. D. Assign them by means of cost allocation. Assign them where needed. Assign them randomly t
1. A cost is not relevant if it: A. B. C. D. E. Does not differ for each option available to the decision maker. Changes from period to period. Is a future cost. Is a mixed cost. Is a fixed cost.
2. Variable costs will generally be relevant
1. The major limitation of volume-based costing systems is the use of volume-based: A. B. C. D. E. Criteria. Standards. Rates. Variances. Restrictions.
2. Volume-based rates produce inaccurate product cost when: A. B. C. D. A large share of f
1. The Taguchi Quality Loss Function (QLF) demonstrates that as the quality measure of a product declines, the loss due to quality defects: A. B. C. D. E. Increases as a quadratic function. Increases as a linear function. Increases as an exp
1. The contribution income statement would require a firm to: A. B. C. D. E. Separate fixed and variable costs. Separate revenue into different categories. Round off amounts to the nearest dollar. Ignore some estimated fixed expenses, such as
1. By convention, short-term financial control is accomplished by all the following except: A. B. C. D. E. Comparing actual to budgeted financial results. Calculating a series of cost and revenue variances at the end of the period. The use o
1. The objectives of cost allocation are to: A. B. C. D. E. Motivate, provide incentives, and determine fair awards. Accurately define, divide and spread direct costs. Value, measure, and interpret cost data. Connect, communicate, and discern
1. Product costing provides useful cost information for the following except: A. B. C. D. E. Both manufacturing and non-manufacturing firms. Product and service cost determination and inventory measurement. Management planning, cost control,
1. Cost behavior for variable overhead is more difficult to predict than for direct material or direct labor cost for all the following reasons except: A. B. C. D. Multiple cost drivers are involved with variable overhead. Direct material an
1. In SWOT analysis, strengths and weaknesses are most easily identified by looking: A. B. C. D. E. At the firm as a potential customer. Inside the firm at its specific resources. At the firm's competition. At the firm's product. Outside the
1. A bonus usually differs from a salary in terms of: A. B. C. D. E. Amount and timing. Base, timing, and financial statement effect. Tax implications. Motivation effects. Base, pool, and payment terms.
2. Of the three basic forms of managem
1. Under the notion of controllability, it is appropriate for top management to evaluate the profitability of investment center in terms of: A. B. C. D. E. Profits in relation to the amount of capital invested in the unit. Returns expressed
1. Especially for projects with long lives, estimation of revenues (or benefits), costs, and cash flows of a capital investment project is a difficult task principally because of: A. B. C. D. E. The lack of good data. Uncertainty about futur
1. Which one of the following uses the number of units of an input factor in its assessment of productivity? A. B. C. D. Partial financial productivity. Total productivity. Operational productivity. Partial productivity.
2. Which one of the
Multiple Regression Model Building
CHAPTER 15: MULTIPLE REGRESSION
1. A real estate builder wishes to determine how house size (House) is influenced by family
income (Income), family size (Size), and education of the head of household (
1. Firms should use a process costing system when they produce products that: A. B. C. D. Are semi-homogeneous. Pass through a series of manufacturing processes. Pass through only one department. Have small batch sizes.
2. In process costing,
1. Many firms choose to achieve target cost through redesign of the product or service because they recognize that design decisions: A. B. C. D. Are life cycle costs with high downstream costs and benefits. Account for much of the total prod
1. The master budget for a given accounting period has all the following except: A. B. C. D. E. Consisting of a series of operating and financial budgets. Being considered the "grand plan of action" for the upcoming period. Culminating in th
1. Which of the four types of cost drivers - activity-based, volume-based, structural and executional - are often best related to linear cost estimation methods? A. B. C. D. E. Activity-based only. Activity-based and volume-based. Structural
1. Performance evaluation in most firms is applied at: A. B. C. D. E. Many different levels from top management down to individual production and sales employees. All levels of production, but only top levels of sales. Top and mid-management
1. Which of the following does not represent a main focus of cost management information? A. B. C. D. E. Strategic management. Performance measurement. Planning and decision making. Preparation of financial statements. Internal auditing and c
4 Decision Making
CHAPTER 17: DECISION MAKING
1. A tabular presentation that shows the outcome for each decision alternative under the various
states of nature is called:
a) a payback period matrix.
b) a decision matrix.
c) a decision tree.
d) a payoff ta
Time-Series Forcasting and Index Numbers
CHAPTER 16: TIME-SERIES FORECASTING AND INDEX
1. The effect of an unpredictable, rare event will be contained in the _
TYPE: MC DIFFICULTY:
Simple Linear Regression
CHAPTER 13: SIMPLE LINEAR REGRESSION
1. The Y intercept (b0) represents the
a) predicted value of Y when X = 0.
b) change in estimated average Y per unit change in X.
c) predicted value of Y.
d) variation around the sample regress
Current Liabilities and Contingencies
ASSIGNMENT CLASSIFICATION TABLE (BY TOPIC)
Topics 1. Concept of liabilities; definition and classification of current liabilities. Accounts and notes payable; dividends payable. Short-term obligations expec