Ⅰ. Choo the best answer for each of the following. Only one answer is correct.
1. Which of the following is the objective of management accounting System?
P4 ( D )
A. To provide information for costing.
B. To provide information for planning, controlling, evaluation, and continuous improvement．
C. To provide information for decision making．
D. All of the above．
2. Any difference between absorption-costing income and variable-costing income is due to the differing treatment of P458 ( C )
A. lling and administrative expen.
B. overhead.
C. fixed overhead.
D. variable overhead.
3. The cost of flexible resources is ( A )
A. variable cost.
B. a committed fixed cost.
C. discretionary fixed cost.
D. a period expens.
4．Which of the following is a production (or unit-level) driver? ( D )
A. Direct labor hours.
B. Direct materials.
C. Direct machine hours.
D. All of the above.
5． If investigation revealed that the unfavorable materials usage variance is the result of the lower-quality materials, who should be responsible for it? ( B )
A. the production manager.
B. the purchasing department.
C. maintenance manager.
D. personnel department.
6．If the variable cost per unit goes up,
Contribution margin Break-even point ( C )
A. increas increas
B. decreas decreas
C. decreas increas
D. increas remains unchanged
7. The major differences between functional and activity-bad budgeting are found within
P230 ( B )
A. the direct materials and direct labor categories.
B. the overhead and lling and administration expens categories.
C. the direct materials and the overhead categories.
D. the direct labor and the overhead categories.
8. Which of the following is not an advantage of the u of ROI? ( B ) P399
A. It encourages managers to focus on the relationship among sales, expens, and investment, as should be the ca for a manager of an investment center.
B. It encourages managers to focus on the profitability of the overall firm.
C. It encourages managers to focus on cost efficiency.
D. It encourages managers to focus on operating asts efficiency.
9．If there is a perfectly competitive outside market for the transferred product, the correct transfer price is ( C )
A. the negotiated transfer price.
B. the cost-bad transfer price.
C. the market price.
D. All of the above.
10. The cost assignment approach that assigns the costs of direct materials, direct labor, and overhead to products using quantity and price standards is called ( C ) P250
A. actual costing.
B. normal costing.
C. standard costing.
D. target costing.
11. Mutually exclusive capital budgeting projects are tho that ( D ) P553
A. if accepted will produce a positive net prent value.
B. if accepted will produce a positive payback period.
C. if accepted or reject do not affect the cash flows of other projects.
D. if accepted precludes the acceptance of all other competing projects.
12. To record cost variances, we can follow a general rule: （D ）P268
A. all inventories are carried at standard cost.
B. actual costs are never entered into an inventory account.
C. unfavorable variances are always debits, and favorable variances are always credits.
D. All of the above.
13. Which of the following organizations need management accounting information?
( D )
A. manufacturing organizations
B. health care
C. legal rvice
D. all of the above
14. Which of the following is an example of batch-level activities? ( C )
A. Direct labor activity
B. Plant depreciation
C. tup activity
D. Marketing a product
15. Which of the following is an example of relevant cost? ( C )
A. Sunk cost.
B. Allocations of common fixed costs.
C. opportunity cost.
D. None of the above.
16. What “product cost” means depends on the managerial objective being rved. If the managerial objective is external financial reporting, product cost means ( A ) P40
