Chapter 3-Job Costing, Process Costing, and
1. The accumulating, tracking, and assigning of production costs to the goods and
services produced is called a:
A. pricing system.
B. managerial system.
C. product costing system.
Chapter 6-Cost-Volume-Profit Analysis
1. The traditional income statement focuses on:
A. cost function.
B. cost behavior.
C. contribution margin.
D. variable costing.
2. Which of the following would you not find on a traditional income statemen
Chapter 13-The Statement of Cash Flows
1. The main purpose of the statement of cash flows is to provide information about:
A. a companys revenues and expenses for a period of time.
B. a companys assets, liabilities, and stockholders' equity at
Chapter 12-Financial Statement Analysis
1. Which of the following statements regarding financial statement analysis is true?
A. It will show how a company is guaranteed to perform in the future.
B. It should not be relied upon as an indicator o
Chapter 7-Relevant Costs and Product
1. Which of the following statements is true regarding special order decisions?
A. Special order decisions are long-run decisions.
B. Whether or not the company has excess capacity is seld
Chapter 2-Product Costing: Manufacturing
Processes, Cost Terminology, and Cost Flows
1. Which of the following types of organizations is most likely to have a raw materials
A. A retailer.
B. A manufacturer.
C. A service provi
Chapter 11-Decentralization, Performance
Evaluation, and the Balanced Scorecard
1. A decentralized organization is one in which:
A. each employee in the organization is given permission to make decisions about their
B. only top-level m
Chapter 8-Long-Term (Capital Investment)
1. The time value of money concept focuses on:
A. revenues alone.
B. expenses alone.
C. cash flows.
D. net income.
2. Which of the following is classified as a capital investment decision?
Chapter 10-Variance Analysis-A Tool for Cost
Control and Performance Evaluation
1. A budget for a single unit of a product or service is called as a:
A. fixed cost.
B. real cost.
C. standard cost.
D. total cost.
2. Which of the following statem
Chapter 9-The Use of Budgets in Planning and
1. Budgets are:
A. future oriented.
B. for managers only.
C. required by GAAP.
D. typically not used by small business.
2. Which of the following statements regarding budgeting is fal
Chapter 1-Introduction to Managerial
1. Which of the following is not true about knowledge in the business environment?
A. It is the same as data or information.
B. It is the value added from shared information.
C. It includes both q