Management Accounting: Questions, Problems, and Answers

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Exam Chapter 1-5
Name

1) Managers usemanagement accounting information to

A) implement
C) communicate

strategy.

B) choose
D) All of these answers are correct.

2) Place the four business functions in the order they appear along the value chain:
Customer service

Design
Marketing
Production

A) Design, Production, Marketing, Customer Service
B) Customer Service, Design, Production, Marketing
C) Design, Customer Service, Production, Marketing
D) Customer Service, Marketing, Production, Design

3) Place the five steps inthe decision-making process inthe correct order:
A = Obtain information

B = Make decisions by choosing among alternatives
C = Identify the problem and uncertainties
D = Implement the decision
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18) A

is a grouping ofindividual indirect cost items.

A) cost assignment
C) cost pool

19)

B) job-costing system
D) cost allocation base

costing isused by abusiness to price unique products for different jobs.
A) Job
B) Traditional
C) Actual

D) Process

20) Process costing:

A) is used exclusivelyin manufacturing

B) iscommonly used bygeneral contractors who construct custom-built homes
C)results in different costs for different units produced
D) allocates allproduct costs, including materials and labor

21) Place the following steps inthe order suggested by the seven steps used to assign costs to individual jobs:
A. Identify indirect costs

B. Compute the total cost of the job
C.

Select cost-allocation bases

D. Compute the indirect cost rate

A)DCAB

B)CADB

C) ACDB

D) BACD

22) Managers and accountants collect most of the cost information that goes into their systems through:
A) time surveys

B) computer programs

C) source documents

D) an information databank

23) Product costing informationis used by managers:
B) to make decisions and strategy
D) All of these answers are correct.

A) for cost management

C) for planning and control

Answer the following questions usingthe information below:

Rhett Company has two departments, Machining and Assembly. The

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