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ACC 561 Final Exam (3rd Set) 52 Questions with ANSWERS.doc

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ACC 561 Final Exam.
P.S. Your questions will be chosen randomly from a large set of questions. Nobody can
guarantee that these questions will cover completely your exam. If I helped you please
leave “A” feedback (I need it very much). Thank you and good luck.
1. _____ refers to accounting information developed for managers
within an organization.
a. Internal auditing
b. Managerial accounting
c. Financial accounting
d. Tax accounting
2. Ethical accountants are important to society because _____.
a. they pay their taxes
b. the information produced is reliable
c. they will not go to prison and waste taxpayers’ money
d. none of these answers is correct
3. Performance reports _____.
a. are quantitative expressions of action plans
b. provide feedback by comparing results with plans and by highlighting
deviations from plans
c. are deviations from a plan
d. ignore areas that are presumed to be running smoothly
4. Output measures of both resources and activities are _____.
a. cost drivers
b. stages of production
c. fixed activities
d. variable activities
5. An accountant may have difficulty classifying costs as fixed or variable because
_____.
a. costs may behave in a nonlinear way
b. costs may be affected by more than one cost driver
c. the decision situation may cause the costs to be fixed in the short term
d. all of these answers are correct
6. If the proportions in a sales mix change, the _____.
a. contribution margin per unit increases

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b. break even point will remain the same
c. cost volume profit relationship also changes
d. net income will not be altered
7. _____ will decrease a company's break-even point.
a. Reducing its total fixed costs
b. Decreasing contribution margin per unit
c. Increasing variable cost per unit
d. Decreasing the selling price per unit
8. Costs that change abruptly at intervals of activity because the resources and their
costs come in indivisible chunks are called ¬¬¬¬¬_____.
a. mixed costs
b. variable costs
c. fixed costs
d. step costs
9. _____ arise as a result of strategic decisions about the scale and scope of
an
organization's activities.
a. Capacity costs
b. Discretionary costs
c. Mixed costs
d. Engineered costs
10. _____ is the first step in estimating or predicting costs as a function of appropriate
cost drivers.
a. Cost measurement
b. Cost determination
c. Cost behavior investigation
d. Cost driver identification
11. The process of identifying appropriate cost drivers and their effects on the costs of
making a product or providing a service is called ¬¬¬¬¬_____.
a. cost prediction
b. cost measurement
c. activity analysis

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d. budgeting
12. _____ is not a primary purpose of a cost management system.
a. Providing aggregate measures of inventory value and cost of
goods sold
b. Providing cost information for strategic management decisions
c. Providing cost information for operational control
d. All of these answers are correct
13. Where a specific product is the cost object, the materials used to
manufacture the product
would probably be classified as a(n) _____.
a. direct, variable cost
b. direct, fixed cost
c. indirect, variable cost
d. indirect, fixed cost
14. _____ is a name for a system that first accumulates overhead costs for each of
the activities of an organization, and then assigns the costs of activities to the
products, services, or other cost objects that caused that activity.
a. Activity based costing
b. Cost driver accounting
c. Transaction based accounting
d. Transaction costing
15. _____ is the process of measuring products, services, and activities against the
best levels
of performance.
a. Value-adding
b. Activity-based costing
c. Benchmarking
d. Continuous improvement
16. Couch Company can produce either product A or product B. If Couch Company
produces product A, expected direct material cost would be $24,000. If Couch Company
produces product B, expected direct material cost would be $24,000. In choosing
between these alternatives, the $24,000 direct material cost is _____.
a. relevant because it is an expected future cost

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