The primary objective of a management accountant is to provide... Question 1 opt

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The primary objective of a management accountant is to provide...

Question 1 options:

stockholders and potential investors with financial information

banks and other creditors with financial information

internal management with information for planning & control

the IRS with taxable income information

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Question 2 (2.5 points)

Management accountants are required by the Institute of Management Accountants (IMA) to obtain a certain number of continuing professional education (CPE) hours. This is to comply with which of the following standards of ethical conduct?

Question 2 options:

confidentiality

integrity

competence

credibility

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Question 3 (2.5 points)

Which of the following is a fixed factory overhead cost?

Question 3 options:

depreciation for office equipment using straight line depreciation

direct labor costs

factory rent

office president's salary

advertising expense

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Question 4 (2.5 points)

A company manufactures small planes. One of these planes was started on April 15, completed on May 15, and sold on June 15. Where would the cost of this plane appear on the April, May, and June financial statements respectively? (assume the financial statements are prepared at the end of each month)

Question 4 options:

work-in-process, work-in-process, cost of goods sold

direct materials, work-in-process, finished goods

work-in-process, cost of goods sold, gross margin

work-in-process, finished goods, cost of goods sold

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Question 5 (2.5 points)

Which of the following is a variable factory overhead expense?

Question 5 options:

Direct material

Indirect material

Factory supervisors salary

Direct labor

Factory rent

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Question 6 (2.5 points)

An understatement of the Finished Goods Inventory account at the end of a period will lead to which of the following effects?

Question 6 options:

an understatement of the COGS in the current period

an overstatement of the Gross Margin in the current period

an understatement of the Net Income for the current period

an understatement of the Cash balance for the current period

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Question 7 (2.5 points)

Costs of goods that have been started but not completed by the end of the period will be recorded as…?

Question 7 options:

Ending Inventory WIP

COGM

COGS

Ending Inventory FG

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Question 8 (2.5 points)

Which of the following statements is true:

Question 8 options:

a misclassification of an operating expense as a FOH expense will understate the unit cost of a product

a misclassification of a FOH expense as an operating expense will overstate the unit cost of a product

a misclassification of an indirect material expense as a direct labor expense will have no effect on the COGM

a misclassification of an office supplies expense as a FOH expense will have no effect on the COGM

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Question 9 (2.5 points)

Use the following information to answer questions 9-13:
Cooks Co. reports the following information for January

Determine the cost of materials used in January?

Question 9 options:

$17,000

$38,000

$55,000

$82,000

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Question 10 (2.5 points)

Use the following information to answer questions 9-13:

Cooks Co. reports the following information for January

Determine the COGM for January?

Question 10 options:

$76,000

$78,000

$80,000

$94,000

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Question 11 (2.5 points)

Use the following information to answer questions 9-13:

Cooks Co. reports the following information for January

Determine the Cost of Goods Sold for January?

Question 11 options:

$76,000

$78,000

$80,000

$94,000

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Question 12 (2.5 points)

Use the following information to answer questions 9-13:

Cooks Co. reports the following information for January

Determine the Net Income (ignoring taxes) for January?

Question 12 options:

($1,000)

$1,000

$38,000

$39,000

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Question 13 (2.5 points)

Use the following information to answer questions 9-13:

Cooks Co. reports the following information for January

Compute the unit cost for January (round to 2 decimal places)

Question 13 options:

$14.64

$13.93

$14.11

$14.82

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Question 14 (2.5 points)

From Aaron's year-end financial statements you observe that the finished goods inventory has increased sharply during the current year. This indicates that during the current year Aaron

Question 14 options:

finished more goods than were sold

sold more goods than were finished

finished the same amount of goods as sold

sold more goods than last year

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Question 15 (2.5 points)

Use the following information to answer questions 15 –17
Photon Dynamics has run two simple regressions and one multiple regression to estimate FOH costs: the simple regressions use # of units produced and the # of machine hours as the independent variables whereas the multiple regression uses both variables. The outputs of these 3 regressions are provided below:

Simple regressiom

(units)

Simple regression

(machine hours)

Multiple regression

(both variables)

State the best cost estimation model to estimate FOH costs?

Question 15 options:

Y = $3,000 + 0.89 (# of units)

Y = $2,600 + 1.82 (# of m/c hours)

Y = $3,200 + 1.80 (# of units) + 4.90 (# of m/c hours)

Y = $3,200 + 2.5 (# of units) + 1.82 (# of m/c hours)

Use the following information to answer questions 15 –17

Photon Dynamics has run two simple regressions and one multiple regression to estimate FOH costs: the simple regressions use # of units produced and the # of machine hours as the independent variables whereas the multiple regression uses both variables. The outputs of these 3 regressions are provided below:

Simple regressiom

(units)

Simple regression

(machine hours)

Multiple regression

(both variables)

Which of the following statements is false (with respect to the best model)?

Question 17 options:

92% of the variation in FOH costs can be explained by changes in the # of units produced and the # of m/c hours used

FOH costs are estimated to increase by $1.80 for every additional unit produced

The estimated amount of fixed FOH costs is $3,985

FOH costs are estimated to increase by $4.90 for every additional m/c hour used

Question 18 (2.5 points)

The slope of the regression line is

Question 18 options:

the rate at which the independent variable varies with a change in the dependent variable

the rate at which the dependent variable varies with a change in the independent variable

the level of total fixed costs

the level of total variable costs

Question 19 (2.5 points)

Which of the following statements is false?

Question 19 options:

R2 indicates the % of variation in the dependent variable that is explained by the independent variable(s)

the most critical step in the regression process is the correct identification of the independent variable(s)

the cost estimation model obtained from a regression analysis is more reliable than a cost estimation model obtained using the high-low method

in a multiple regression model, an independent variable with a t-statistic of -2.46 indicates that it is not making a contribution to the overall model

Question 20 (2.5 points)

Which of the following statements is false?

Question 20 options:

In a multiple regression model, the t-stat for each independent variable indicates the goodness of fit for the overall model

It is possible to have a multiple regression model with a strong R2 even though an individual cost driver may not be making a significant contribution to the model

The slope of the cost estimation model indicates the rate of change in the dependent variable with a unit change in the independent variable

A cost estimation model using the high-low method will almost always produce a different intercept & slope compared to a regression model

stockholders and potential investors with financial information

banks and other creditors with financial information

internal management with information for planning & control

the IRS with taxable income information

Explanation / Answer

1. internal management with information for planning & control

2. competence

3. factory rent

4. work-in-process, finished goods, cost of goods sold

5. Indirect material

6. an understatement of the Net Income for the current period

7. Ending Inventory WIP

8. a misclassification of an office supplies expense as a FOH expense will have no effect on the COGM

9. $17,000 (Opening + Purchase - Closing Inventory i,e 39000+16000-38000)

10. COGM for January $78,000 ( Material Cost + Labour + Factory exp such as rent tilities+ Net wok in process + Depriciation for factory machine)

11.$80000 (While calculating I am getting $106,000 As cost of good sold)

12. ($1,000)

13. $13.93

14. finished more goods than were sold

15. Y = $3,200 + 1.80 (# of units) + 4.90 (# of m/c hours)

17. The estimated amount of fixed FOH costs is $3,985

18. the rate at which the dependent variable varies with a change in the independent variable

19. the most critical step in the regression process is the correct identification of the independent variable(s)

20. It is possible to have a multiple regression model with a strong R2 even though an individual cost driver may not be making a significant contribution to the model

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