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1) Which one of the following is a product cost?
A. Indirect labor B. Sales person's salaries C. Office salaries D. Advertising costs

2) Lucy starts her own psychiatric practice, but her expenditures to open the practice exceed her income. Lucy is a __________.
A. borrower who demands money from the financial system B. borrower who supplies money to the financial system C. saver who supplies money to the financial system D. saver who demands money from the financial system

3) Of the following companies, which one would not likely employ the specific identification method for inventory costing?
A. Music store specializing in organ sales B. Antique shop C. Farm implement dealership D. Hardware store

4) Which one of the following items is not generally used in preparing a statement of cash flows?
A. Adjusted trial balance
B. Comparative balance sheets C. Additional information D. Current income statement

5) The conceptual framework developed by the Financial Accounting Standards Board __________.
A. was approved by a vote of all accountants B. is viewed as providing a constitution for setting accounting standards for financial reporting
C. are rules that all accountants must follow D. is legally binding on all accountants

6) What is the preparation of reports for each level of responsibility in the company's organization chart called?
A. Static reporting B. Exception reporting C. Responsibility reporting D. Master budgeting analysis

7) The cost principle requires that when assets are acquired, they be recorded at __________.
A. appraisal value B. selling price C. exchange price paid D. list price

8) If a company reports a net loss, it __________.
A. will not be able to make capital expenditures B. will not be able to get a loan C. may still have a net increase in cash D. will not be able to pay cash dividends

9) The major reporting standard for management accounts is __________.
A. generally accepted accounting principles B. relevance to decisions C. the Standards of Ethical Conduct for Practitioners of Management Accounting and Financial Management
D. the Sarbanes-Oxley Act of 2002

10) The primary purpose of the statement of cash flows is to __________.
A. facilitate banking relationships B. provide information about the cash receipts and cash payments during a period
C. provide information about the investing and financing activities during a period
D. prove that revenues exceed expenses if there is a net income

11) Managerial accounting __________.
A. places emphasis on special-purpose information B. pertains to the entity as a whole and is highly aggregated C. is concerned with costing products D. is governed by generally accepted accounting principles

12) A well-designed activity-based costing system starts with __________.
A. analyzing the activities performed to manufacture a product B. assigning manufacturing overhead costs for each activity cost pool to products
C. identifying the activity-cost pools D. computing the activity-based overhead rate

13) Balance sheet accounts are considered to be __________.
A. nominal accounts B. capital accounts C. temporary stockholders' accounts D. permanent accounts

14) As Plant Controller, you are trying to determine which costs over which you have the most control on a day to day basis. Your goal is to achieve better profitability. The Plant Operations Manager suggests that overhead is the easiest area to directly reduce costs. Which of the following items would be classified as manufacturing overhead?
A. Cost of landscaping the corporate office B. The western division's vice president's salary C. General corporate liability insurance D. Factory janitor

15) The primary purpose of the statement of cash flows is to __________.
A. facilitate banking relationships B. provide information about the cash receipts and cash payments during a period
C. provide information about the investing and financing activities during a period
D. prove that revenues exceed expenses if there is a net income

16) Lekeisha's income exceeds her expenditures. Lekeisha is a __________.
A. borrower who demands money from the financial system B. borrower who supplies money to the financial system C. saver who supplies money to the financial system D. saver who demands money from the financial system

17) A tax on an imported good is called a __________.
A. supply tax B. trade tax C. tariff D. quota

18) One of Astro Company's activity cost pools is machine setups, with estimated overhead of $150,000. Astro produces sparklers (400 setups) and lighters (600 setups). How much of the machine setup cost pool should be assigned to sparklers?
A. $150,000 B. $60,000 C. $90,000 D. $75,000

19) One characteristic of an oligopoly market structure is:
A. firms in the industry have some degree of market power. B. firms in the industry are typically characterized by very diverse product lines. C. the actions of one seller have no impact on the profitability of other sellers. D. products typically sell at a price that reflects their marginal cost of production.

20) When, in a particular market, the law of demand and the law of supply both apply, the imposition of a binding price ceiling in that market causes quantity demanded to be __________.
A. less than quantity supplied B. greater than quantity supplied C. double the quantity supplied D. equal to quantity supplied

21) When a firm sells a good or a service, the sale contributes to the nation's income __________.
A. only if the buyer of the good or service is a household or another firm B. only if the buyer of the good or service is a household C. We have to know whether the item being sold is a good or a service in order to answer the question
D. whether the buyer of the good or a service is a household, another firm, or the government

22) The open-economy macroeconomic model includes __________.
A. only the market for foreign-currency exchange B. only the market for loanable funds C. neither the market for loanable funds or the market for foreign-currency exchange
D. both the market for loanable funds and the market for foreign-currency exchange

23) Most economists use the aggregate demand and aggregate supply model primarily to analyze __________.
A. the effects of macroeconomic policy on the prices of individual goods B. short-run fluctuations in the economy C. productivity and economic growth D. the long-run effects of international trade policies

24) In the market for foreign-currency exchange in the open economy macroeconomic model, the amount of net capital outflow represents the quantity of dollars __________.
A. supplied for the purpose of buying assets abroad B. supplied for the purpose of selling assets domestically C. demanded for the purpose of importing foreign goods and services D. demanded for the purpose of buying U.S. net exports of goods and services

25) Which of the following is not correct?
A. A potential cost of deficits is that they reduce national saving, thereby reducing growth of the capital stock and output growth.
B. The U.S. debt per-person is large compared with average lifetime income. C. Deficits give people the opportunity to consume at the expense of their children, but they do not require them to do so.
D. In 2005, the U.S. government had a deficit.

26) The Federal Reserve will tend to tighten monetary policy when __________.
A. interest rates are rising too rapidly B. the growth rate of real GDP is quite sluggish C. it thinks the unemployment rate is too high D. it thinks inflation is too high today, or will become too high in the future

27) Which of the following statements about GDP is correct?
A. Nominal GDP values production at current prices, whereas real GDP values production at constant prices.
B. Nominal GDP values production at market prices, whereas real GDP values production at the cost of the resources used in the production process.
C. Nominal GDP values production at constant prices, whereas real GDP values production at current prices.
D. Nominal GDP consistently underestimates the value of production, whereas real GDP consistently overestimates the value of production.

28) The most dominant areas in the global economy include:
A. North America, Western Europe and Asia B. North America, Asia and Africa C. North America, Mexico and Asia D. Western Europe, Asia and Africa E. North America, South America and Western Europe

29) The term used to refer to all kinds of differences including religious affiliation, age, disability status, economic class and lifestyle in addition to gender, race, ethnicity and nationality is:
A. Diversity B. Recruiting C. Employment D. Managerial ethics E. Selection

30) A leader is:
A. Someone with authority over others B. Someone who influences others to attain goals C. The top level manager in a firm or business
D. Someone well-respected by others E. A strategic level manager

31) Teams that operate separately from the regular work structure and exist temporarily are known as:
A. Management teams B. Self-managed teams C. Parallel teams D. Transnational teams E. Self-designing teams

32) __________ is the process of working with people and resources to accomplish organizational goals.
A. Supervising B. Decision making C. Management D. Controlling E. Planning

33) An organization that is managed aggressively and has growth and high profits as primary objectives may be considered a(n):
A. Online Business B. Entrepreneurship venture C. Large corporation D. Small business E. Multinational corporation

34) A manager's ability to stimulate people to be high performers is referred to as:
A. Supervising B. Controlling