Finance Questions

Which of the following is a direct material?a. Glueb. Depreciationc. Shipping d. Assembly worker wages

Which of the following is a cost driver for warranty costs?a. Number of machines set up at the factoryb. Hours spend on research and developmentc. Number of warranty claimsd. Salary of the CFO

Retail, Service, and Manufacturing companies all use managerial accounting. (True/False)

Which of the following is a period cost?a. Direct materialsb. Direct laborc. Factory wagesd. Research and development expense

Good Luck On Your First Exam Corp. produces custom good luck charms for accounting exams. They allocate MOH based on machine hours and have the following data:DM used: $50DL hours used: 30Machine hours used: 8Predetermined MOH rate: $20How much MOH should be allocated to this job? (Bonus: If actual MOH was $200, is MOH over or under allocated?)

Tax return preparation is one of the technical competencies managerial accountants need to have. (True/False)

Si Se Puede Corp uses direct labor cost as an allocation base:Actual DL cost $960Estimated DL cost $1000Actual MOH $1200Estimated MOH $800What is their predetermined MOH rate?

When deciding to buy a new car, which cost is not relevant?a. The cost of the type of gas it takesb. The cost of maintenancec. The initial cost of the card. The cost of your old car

The cost of quality (COQ) category that represents the cost for defective goods after the good is sold to customers is:a. Prevention Costb. Appraisal Costc. Internal Failure Costd. External Failure Cost

External parties such as customers and suppliers utilize budgeted information. (True/False)

Good Luck on Saturday Corp. reported the following:DM used: $320DL: $600FG, beginning: $0FG, ending: $100COGM: $800What is COGS?

Direct materials and factory employee wages are examples of which type of cost?a. Fixedb. Variablec. Mixedd. Sunk

The Institute of Management Accountants (IMA's) is an association for managerial accountants. (True/False)

As part of the planning process, managers prepare which of the following?a. Managerial accounting examsb. Budgetsc. Financial statementsd. Bonuses

Under SOX (Sarbanes-Oxley Act of 2002), which individuals must evaluate and assume responsibility for the internal controls and financial reporting system annually?a. CEOb. CFOc. Auditord. Both a and b

I Love Managerial Accounting Inc. has the following information:DM used: $500COGM: $200DL: $80FG inventory, end: $50FG inventory, beg: $100MOH: $250WIP inventory, end: $400WIP inventory, beg: $200What is the cost of goods sold?

What is the cost of the design category of the value chain?Don't Worry You've Got This Corp. has the following costs:Factory janitor wages $100Customer support hotline: $800Depreciation: $50Sales commissions: $200Customer order hotline: $150Reconfiguring the assembly process: $300Salaries of the researchers: $700

To prevent future accounting scandals like Enron, the regulators enacted which of the following? a. Sarbanes-Oxley Act b. Sustainabilityc. Institute of Management Accountantsd. Mandatory mask requirement

The IMAʹs Statement on Ethical Professional Practice include which of the following ethical standards?a. Competenceb. Integrityc. Confidentialityd. All of the above

CPA (Certified Public Accountant) firms are allowed to provide tax services to audit clients. (True/False)