Solved >     81. All of the following are key:1280099 …

 

 

81. All of the following are key developments that have helped reshape the discipline of managerial accounting except: 
A. the convergence of U.S. GAAP with IFRS
B. global strategies
C. total quality management
D. integrated information systems

82. Managerial accountants would most likely assist organizations in the performance of all of the following functions except:  
A. Monitoring, evaluating, and rewarding performance.
B. The preparation of income tax returns.
C. Planning and decision-making.
D. The assignment of decision-making authority over company assets.

83. Which of the following is the organization that sponsors the major certification of accountants known as the CMA? 
A. The Canadian Institute of Chartered Accountants
B. The Cost Accounting Standards Board
C. The Institute of Management Accountants
D. The American Institute of Certified Public Accountants

84. All of the following are provisions of the Sarbanes-Oxley Act except: 
A. The law states that the CEO and the CFO are responsible for signing their company’s financial statements and indicating that the financial statements do not omit material information.
B. The law requires the company’s auditor must attest to management’s assessment of internal controls.
C. The law created the Public Company Accounting Oversight Board (PCAOB), which
oversees auditors of public companies.
D. The law requires that lower-level managers submit to lie-detector tests if fraud is suspected.

85. Which of the following is best defined as a cost that changes in totalas the level of activity changes? 
A. an opportunity cost
B. a fixed cost
C. a variable cost
D. a cost object

86. All of the following statements are true regarding the contrast between income statements for managerial use with those for external reporting except: 
A. Income statements for external reporting show variable and fixed costs.
B. Income statements for external reporting typically aggregate data more than those used for managerial purposes.
C. Income statements for external reporting comply with income tax regulations and financial accounting principles.
D. Operating profit is used at the bottom of income statements prepared for managerial use.

87. For a furniture manufacturer, which of the following activities could not be eliminated without changing the customer’s perception of the product’s desirability?  
A. Set-up of machinery to produce different pieces of furniture.
B. Reducing the product’s distribution network.
C. Inspection of incoming shipments of wood and fabrics.
D. Movement of work-in-process from one work station to another.

88. In an aircraft factory, the inventory of direct materials would not include:  
A. Glue for the passenger seats
B. Electronic instruments to be installed in aircraft.
C. Lavatory equipment
D. Sheet aluminum to be used for the exterior of the aircraft.

89. Krista’s Bakery produced and sold 2,000 pies last month and had fixed costs of $6,000.  If production and sales are expected to increase by 10% next month, which of the following statements is true? 
A. Fixed cost per unit will decrease.
B. Fixed cost per unit will increase.
C. Total fixed costs will decrease.
D. Total fixed costs will increase.

90. Which of the following is most likely to be considered a variable cost? 
A. Depreciation on equipment.
B. The cost of labor used in production.
C. Insurance on the factory.
D. Rent on a storage facility.

91. Which of the following is most likely to be a fixed cost for a company? 
A. Sales commissions.
B. Depreciation on factory equipment
C. The cost of materials used in production.
D. The cost of shipping finished goods.

 

 

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