Question :
Multiple Choice Questions
25. Susan Mason the manager of one department in : 1207999
Multiple Choice Questions
25. Susan Mason is the manager of one department in a large store. In this capacity, which of the following kinds of information would she be interested in?
A. Information that is local, relevant, and timely
B. Information that is global and pertains to the business as a whole
C. Information that meets cost/benefit criteria
D. Both A and C
26. All of the following are features of managerial accounting except:
A. Information is historically based and reported annually.
B. Information includes economic and non-financial data as well as financial data.
C. Information is provided primarily to insiders such as managers.
D. Information is reported continuously with a present or future orientation.
27. Choose the answer that is not a distinguishing characteristic of financial accounting information.
A. It is global information that reflects the performance of the whole company.
B. Its time horizon is the present and future.
C. It is more concerned with financial data than physical or economic data.
D. It is more highly regulated than managerial accounting information.
28. Managerial accounting information is limited or restricted by which of the following authorities or principles?
A. Securities and Exchange Commission
B. Generally Accepted Accounting Principles
C. Value-Added Principle
D. None of these
29. Select the incorrect statement regarding the relationship between type of user and type of information.
A. Assembly line workers need more nonfinancial, or operational, data than do senior executives.
B. Assembly line workers need more immediate feedback on performance than do senior executives.
C. Senior executives use general economic information as well as financial information.
D. Senior executives need less aggregated information than do lower-level managers.
30. Select the incorrect statement regarding managerial and financial accounting.
A. Users of financial accounting information desire greater aggregation than do users of managerial accounting information.
B. Both managerial and financial accounting use economic and physical data in addition to financial data.
C. Financial accounting is more highly regulated than managerial accounting.
D. Timeliness is more important in managerial accounting than in financial accounting.
31. Which of the following most exemplifies the value-added principle?
A. An ongoing process where continuous improvement is the goal
B. A competitive management program that emphasizes quality
C. Information gathering and reporting activities that are restricted to those activities that add value in excess of their cost
D. Managerial accounting information is measured in economic, physical, and financial terms
32. Which of the following costs would be classified as a direct cost for a company that produces lawn mowers?
A. Rent of manufacturing facility that produces lawn mowers
B. Depreciation on equipment used to produce the lawn mowers
C. Wheels used in the lawn mowers
D. None of these
33. Which of the following is a product cost for a construction company?
A. Cost of transporting raw materials to the job site
B. Selling costs
C. Wages paid to the company’s office manager
D. All of these
34. For a manufacturing company, product costs include all of the following except:
A. direct material costs.
B. direct labor costs.
C. research and development costs.
D. overhead costs.
