UFC1, Chapter 1, Quiz 1 – Flashcards
Unlock all answers in this set
Unlock answersquestion
Managerial accounting information
answer
Involves gathering information about costs for planning and control decisions
question
Managerial accounting is different from financial accounting in that
answer
Managerial accounting includes many projections and estimates whereas financial accounting has a minimum of predictions
question
Flexibility of practice when applied to managerial accounting means that
answer
The design of a company's managerial accounting system largely depends on the nature of the business and the arrangement of the internal operations of the company
question
Which of the following does NOT represent a difference between financial and managerial accounting
answer
Purpose of accounting
question
These represent a difference between financial and managerial accounting
answer
Users of information Flexibility of practices Timeliness and time dimension of the information reported Nature of the information
question
Which of the following is a management concept that was NOT created to improve companies' performance
answer
Theory of Constraints
question
These management concepts were created to improve companies' performance
answer
Just-in-time manufacturing Customer orientation Total quality management Continuous improvement
question
Which is NOT a characteristic of fraud
answer
Can be intentional or unintentional
question
These are characteristics of fraud
answer
It is done to provide a direct or indirect benefit to the employee It violates the employee's duties to his employer It costs the employer money It is a secret
question
A direct cost is a cost that is
answer
Traceable to a cost object
question
An opportunity cost is
answer
A cost of potential benefit lost
question
Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are
answer
Direct labor
question
Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production, including all manufacturing costs other than direct material and direct labor costs, are called
answer
Factory overhead
question
Materials that are used in support of the production process but that do not become a part of the product and are not clearly identified with units or batches of product are called
answer
Indirect matierals
question
The salary paid to the supervisor of an assembly line would normally be classified as
answer
Indirect labor
question
Classifying costs by behavior involves
answer
Identifying fixed cost and variable cost
question
Products that have been completed and are ready to be sold by the manufacturer are called
answer
Finished goods inventory
question
Goods a company acquires to use in making products are called
answer
Raw materials inventory
question
Products that are in the process of being manufactured but are not yet complete are called
answer
Goods in process inventory
question
Another title for goods in process inventory is
answer
Work in process inventory
question
The cost of labor that is not clearly associated with specific units or batches of product is called
answer
Indirect labor
question
Factory overhead costs normally include all of the following EXCEPT
answer
Selling costs
question
Factory overhead costs include the following
answer
Indirect labor costs Indirect material costs Machinery oil Factory rent
question
Which of the following items appears only in a manufacturing company's financial statement
answer
Cost of goods manufactured
question
A manufacturing statement is also known as a schedule or listing of the
answer
Cost of goods manufactured
question
Ajax Company accumulated the following account information for the year: Beginning raw materials inventory= 6000 Indirect materials cost= 2000 Indirect labor cost= 5000 Maintenance of factory equipment= 2800 Direct labor cost= 7000 Using the above information, total factory overhead costs would be
answer
Factory overhead= 9800 because: FOH = Indirect materials + Indirect labor + Maintenance FOH = $2,000 + $5,000 + $2,800 FOH = $9,800
question
Beginning raw materials inventory= 2500 Raw materials purchase= 4000 Ending raw materials inventory= 3000 Office supplies expense= 1000 The amount of raw materials used in production for the year is
answer
3500, because: Beg RM+Purch-End RM= RM used
question
A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a
answer
Manufacturing statement
