question

Using product cost information to determine sales pries is an example of:

answer

Directing and planning.

question

When management reviews hourly sales reports to determine the level of staffing needed to service customers, which of management's three primary responsibilities is fulfilled?

answer

Directing and planning.

question

Which of the following people is most likely to only use financial accounting information?

answer

Bank loan officer

question

Managerial accounting would use which of the following types of information?

answer

Financial information, nonfinancial information, and forecasts of future earnings.

question

Which of the following reports is most likely to be required to be audited by an outside entity?

answer

Annual financial statements

question

Internal parties receive information about past performance from

answer

Managerial accounting reports

question

The COO is responsible for managing which of the following aspect(s) of the company?

answer

Research and development, production and distribution.

question

The person who is directly responsible for all financial functions is the

answer

CFO - Chief Financial Officer

question

The person who is directly responsible for the company's operations, such as research and development, production and distribution is the

answer

COO - Chief Operating Officer

question

Which of the following certifications is issued by the IMA?

answer

CMA - Certified Management Accountant

question

Which of the following is an example of IMA's competence standard?

answer

Provide decision support that is accurate, clear, concise and timely.

question

Failure to mitigate a conflict of interest would violate which ethical standard of conduct?

answer

Integrity

question

XBRL stands for?

answer

eXtensible Business Reporting Language

question

Companies that which to demonstrate their commitment to international quality standards may become certified by what organization?

answer

ISO- International Standards Organization

question

For a ___, inventory consists of freight - in and the cost of the product which is to be resold.

answer

merchandising company

question

Which of the following costs could be found in work in process inventory for a candy bar manufacturer?

answer

Assembly worker wages

question

All of the following activities are included in the value chain except

answer

Safety

question

Which of the following would not be included in the value chain?

answer

All costs are included: costs to deliver product to retail outlets, website development costs, and costs of print advertisements.

question

Period costs are

answer

always recorded as an expense.

question

A company is deciding whether to purchase production equipment which can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision?

answer

The additional labor required to run the new equipment

question

How do fixed costs per unit behave?

answer

They increase as production decreases.

question

Job order costing might be used by a

answer

custom house builder.

question

A ___ is a document which is prepared by manufacturing personnel to request materials for the production process

answer

materials requisition

question

A ___ is an estimated manufacturing overhead rate computed before the year begins.

answer

predetermined manufacturing overhead rate.

question

When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ____ and then ____ together the allocated amounts from each department.

answer

the actual amount of the departmental allocation based used by the job; add

question

Which of the following can be used in conjunction with activity - based costing?

answer

Process costing and job costing.

question

Indications that a product cost system needs revision include

answer

the company uses a single - allocation - base system developed long ago.

question

On a cost of quality report, which of the following cost items should be classified as a prevention cost?

answer

Technical support provided to suppliers

question

The cost of testing income raw materials from a supplier would be classified as an ____ cost

answer

Appraisal

question

What does direct labor costs plus manufacturing overhead equal?

answer

Conversion costs

question

In Step 1 of the process costing procedure, the "total units accounted for" is the sum of

answer

the units completed and transferred out plus the units in ending WIP.

question

Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring, and finishing. When the frisbees and associated costs are transferred from the molding process to the coloring process, which account is debited?

answer

WIP inventory - coloring

question

Fun Stuff Manufacturing produces frisbees using a three-step sequential process that includes molding, coloring, and finishing. When the frisbees and associated costs are transferred out of the coloring process and into the finishing process, the journal entry would include a

answer

debit to WIP inventory - finishing and a credit to WIP - coloring.

question

The balance sheet of a service company has

answer

little or no inventory.

question

Which type of company typically produces its own inventory?

answer

Manufacturer

question

For a ____ inventory consists of freight - in and the cost of the product which is to be resold.

answer

Merchandising company

question

Delivery expenses are charged to which of the following areas?

answer

Distribution

question

Which of the following industries would be most likely to use a job costing system?

answer

Commercial building construction

question

Which of the following is an example of an industry that would use a process costing -rather than a job costing - system?

answer

Pepsi

question

A manufacturer of luxury yachts would use which type of costing system?

answer

Job costing

question

A ____ is used to accumulate the costs of a job.

answer

job cost record

question

When direct materials are requisitioned they flow directly into

answer

work in progress inventory.

question

In the flow of costs, which of the following comes third?

answer

Finished goods inventory

question

Using traditional costing instead of ABC costing might lead to all of the following except

answer

raising the selling price of low - volume products.

question

The benefits of adopting ABC/ABM are higher for companies in more competitive markets.

answer

True

question

The benefits of using the ABC costing system are higher if the company

answer

has high indirect costs and produces many different products that use differing amounts of resources.

question

Which of the following is a lean strategy?

answer

Produce in smaller batches than a traditional system.

question

The following items are a characteristic of a lean company

answer

Machine setup times are reduced, employees are trained to operate more than one machine, and production is in small batches.

question

Which term below best describes the quality cost category for "cost to re-inspect reworked blenders"?

answer

Internal failure costs

question

Which term below best describes the quality cost category for "cost of testing toasters before sale?"

answer

Appraisal costs

question

Baxter company produces wiffle ball sets using a 3-step sequential process that includes molding, coloring and finishing. At what stage would the sets be allocated manufacturing overhead?

answer

when the frisbees are WIP coloring, finishing, and molding

question

The costing system used by a company producing custom fireplace mantels would be

answer

Job costing.

question

The number of partially completed units multiplied by the percentage of process completed equals the number of equivalent units.

answer

True

question

The number of equivalent units is usually the same for direct materials and conversion costs.

answer

False

question

5 steps of the process costing procedure

answer

1. Summarize the flow of physical units 2. Compute output in terms of equivalent units 3. Summarize total costs to account for. 4. Compute the cost per equivalent unit 5. Assign total costs to units completed and to units ending WIP inventory.

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