1. Management accounting is primarily concerned with which of the following?
A) Following GAAP.
B) Producing information for management.
C) Preparing a full set of financial statements for external users.
D) Preparing tax returns for submission to the Internal Revenue Service
2. The management of the flow of materials from the supplier through production to distribution to the customer is known as
A) strategic cost management
B) firm value chain
C) industrial value chain
D) supply chain management
3. When is the cost of manufacturing equipment recognized as an expense on the income statement?
A) when selling expense is recognized
B) when cost of goods sold is recognized
C) Never since the expense is a non cash charge
D) when the equipment is depreciated
4. The certification sponsored by the Institute of Management Accountants that emphasizes economics, finance, and management; financial accounting and reporting; management reporting; and decision analysis is
A) the CPA
B) the CIA
C) none of the above
D) the CMA
5. Which of the following costs would be classified as an indirect cost in the manufacturing of custom built dining tables?
A) the cost of the table base
B) the cost of the person assembling the table
C) the cost of the table legs
D) the cost of the rent on the manufacturing facility
6. The grease used to maintain the production equipment in working order is an example of which of the following?
A) indirect material
B) indirect labor
C) direct material
D) direct labor
7. Which of the following is a product cost?
A) insurance on the office buildings
B) depreciation of the production facilities
C) depreciation of the salesmen’s cars
D) advertising expenditures