QUESTION 1

1. Inventory costing methods are merely means by which costs are allocated between ending inventory and cost of goods sold.

   True

   False

QUESTION 2

1. Which form of budeting addresses getting "buy-in" from the budget managers?

   	A.	Rolly Budget
   	B.	Managerial Budgt
   	C.	Participative Budget
   	D.	Budgetary Slack

QUESTION 3

1. Six Sigma Lean Processing is an evaluation tool for production pocesses. Six sigma strategies strive to improve the process to reduce the defects of the output. What type of inventory management would a company applying the Six Sigma Strategies be implementing?

   	A.	Accounting Issues
   	B.	Production Characteristic
   	C.	Quality Management
   	D.	Inventory Buffers

QUESTION 4

1. XYZ Company has recevied an audit finding for not separating the duties between their accounting staff. The same ndiviudal that collects receivables, makes deposits and reconciles the bank account. The auditors that identify this risk is addressing the following accounting and business risk control

   	A.	Control and Subsidiary Account Risks
   	B.	Journal Entry Risks
   	C.	Financial Reporting
   	D.	Accounting Cycle

QUESTION 5

1. The Auditor has asked that the firm they are auditing has asked for access to their general ledger. Upon receipt of a file, the auditors discover that they firm they are auditing uses Excel to manage their bookkeeping. The use of Excel rather than using an accounting software reveals why the trial balance the client provided does not balance. Because the firm does not use an accounting software that assures that every entry posts is a balancing entry, the audit firm is increasing their risk assessment because of the following risk

   	A.	Accounting Cycle
   	B.	Journal Entry Risk
   	C.	Control and Subsidiary Account Risks
   	D.	Financial Reporting

QUESTION 6

1. In a manufacturing company, product costs would not include

   	A.	Indirect Cost
   	B.	Direct Labor
   	C.	Direct Material
   	D.	Administrative Costs