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Test Bank For Managerial Accounting Decision Making and Motivating Performance 1st Edition Datar Rajan 0132816245 9780132816243
Test Bank For Managerial Accounting Decision Making and Motivating Performance 1st Edition Datar Rajan 0132816245 9780132816243
2) A is usually measured as the amount of money that must be paid to acquire goods and
services.
A) time
B) cost
C) goal
D) product
E) prediction
Answer: B
Diff: 1 Page Ref: 30
LO: 2-1
EOC: E2-10; E2-11
AACSB: Reflective Thinking Skills
Learning Outcome: FA-2: Describe the components of and prepare the four basic financial statements.
3) Which of the following explains why managers compare the budgeted costs to actual costs?
A) Managers only focus on the budgeted costs.
B) Managers only learn how to make better decisions in the future.
C) Managers know how well they did to control costs only.
D) Managers evaluate how well they did to control costs and learn how to do better in the future.
E) Managers never compare these costs.
Answer: D
Diff: 1 Page Ref: 30
LO: 2-1
EOC: E2-10; E2-11
AACSB: Reflective Thinking Skills
Learning Outcome: MA-2: Discuss the legal, ethical, and business concepts that affect managerial accounting.
1
Copyright © 2014 Pearson Education, Inc.
4) The cost object is:
A) the cost incurred.
B) a collection of cost data in some organized way by means of a cost object.
C) a predicted, or forecasted, cost.
D) anything for which a measurement of costs is desired.
E) used to describe the assignment of indirect costs to a particular cost object.
Answer: C
Diff: 1 Page Ref: 30
LO: 2-1
EOC: E2-1
AACSB: Reflective Thinking Skills
Learning Outcome: FA-2: Describe the components of and prepare the four basic financial statements.
6) Cost accumulation:
A) is the cost incurred.
B) is a collection of cost data in an organized way by means of a cost object.
C) predicts, or forecasts, costs.
D) measures the desired costs.
E) describes the assignment of indirect costs to a particular cost object.
Answer: B
Diff: 1 Page Ref: 30
LO: 2-1
EOC: E2-1
AACSB: Reflective Thinking Skills
Learning Outcome: FA-2: Describe the components of and prepare the four basic financial statements.
2
Copyright © 2014 Pearson Education, Inc.
7) The two main ways managers use cost information are when they decisions; and,
decisions.
A) make; implement
B) create; brainstorm
C) control; create
D) brainstorm; control
E) control; accumulate
Answer: A
Diff: 2 Page Ref: 30
LO: 2-1
EOC: E2-11
AACSB: Reflective Thinking Skills
Learning Outcome: MA-2: Discuss the legal, ethical, and business concepts that affect managerial accounting.
8) A/an cost is the cost incurred; and they are distinguished from a cost; which is a
predicted, forecasted, or future cost.
A) budget; object
B) actual; budgeted
C) accumulated; actual
D) budgeted; actual
E) cost object; actual
Answer: B
Diff: 3 Page Ref: 30
LO: 2-1
EOC: E2-10
AACSB: Analytic Skills
Learning Outcome: FA-2: Describe the components of and prepare the four basic financial statements.
3
Copyright © 2014 Pearson Education, Inc.
10) Evans Manufacturing has three cost objects that it uses to accumulate costs for its manufacturing plant
in Virginia. They include:
Cost Object #1: The real estate dwelling(s) (physical buildings and equipment)
Cost Object #2: The use of buildings and equipment
Cost Object #3: The use and availability of manufacturing labor
The following manufacturing overhead cost categories are found in the accounting records:
a. Depreciation on buildings and equipment
b. Machine lubricants
c. Insurance for property
d. Supervisors salaries
e. Fringe benefits
f. Property taxes
g. Utilities
Required:
Assign each of the above costs to the most appropriate cost object.
Answer:
Cost Object #1 includes categories a, c and f
Cost Object #2 includes categories b and g
Cost Object #3 includes categories d and e
Diff: 2 Page Ref: 30
LO: 2-1
EOC: E2-14
AACSB: Analytic Skills
Learning Outcome: FA-2: Describe the components of and prepare the four basic financial statements.
11) A BMW X6 sports activity coupe is an example of the cost object at BMW.
A) product
B) service
C) project
D) customer
E) activity
Answer: A
Diff: 1 Page Ref: 30
LO: 2-1
EOC: E2-1
AACSB: Reflective Thinking Skills
Learning Outcome: FA-2: Describe the components of and prepare the four basic financial statements.
4
Copyright © 2014 Pearson Education, Inc.
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