Question 1

the purpose of managerial accounting is to provide useful information to internal managers to help them ___ ___ that arise as they manage people, projects, products, or segments of the business

Accepted Answer

make decisions

Question 2

comparison of financial accounting and managerial accounting - user perspective ______ accounting: used by external parties, such as investors, creditors and regulators _____ accounting: used by internal parties, such as managers and employees

Accepted Answer

financial managerial

Question 3

comparison of financial accounting and managerial accounting - types of reports ____ accounting: various non - GAAP reports, such as budgets, performance evaluations, and cost reports ____ accounting: classified financial statements prepared according to GAAP

Accepted Answer

managerial financial

Question 4

comparison of financial accounting and managerial accounting - nature of information _____ accounting: objective, reliable, historical _____ accounting: subjective, relevant, future oriented

Accepted Answer

financial managerial

Question 5

comparison of financial accounting and managerial accounting - frequency of reporting _____ accounting: prepared as needed, perhaps day-to-day or even in real time _____ accounting: prepared periodically (monthly, quarterly, annually)

Accepted Answer

managerial financial

Question 6

comparison of financial accounting and managerial accounting - level of detail ____ accounting: information reported for the company as a whole ____ accounting: information reported at the decision-making level (by product, region, customer, or other business segment)

Accepted Answer

financial managerial

Question 7

(functions of management term) is the future-orinted aspect of the management process. it involves setting short-term and long-term goals or objectives, along with the tactics that will be used to achieve those goals. an important part of this function is the development of a budget that lays out the plan in financial terms so that managers can be sure they have the necessary resources to achieve the short-and long-term objectives. a budget is the quantification of the resources and expenditures that will be required during a given period of time to achieve a plan

Accepted Answer

planning/organizing

Question 8

(functions of management term) occurs when managers put the plan into action. here, managers must make all of the detailed decisions to implement the plan, as well as motivate others to achieve results.

Accepted Answer

directing/leading

Question 9

(functions of management term) involves measuring or monitoring the company\'s actual results to see whether the planned objectives are being met. if not, managers may need to take corrective action to get back on track

Accepted Answer

controlling

Question 10

the three main functions of management

Accepted Answer

directing/leading planning/organizing leading

Question 11

(types of organization term) purchase raw materials from suppliers and use them to create a finished product; sell finished products to customers

Accepted Answer

manufacturers

Question 12

(types of organization term) sell the goods that manufacturers produce; those that sell their goods to other businesses are called wholesalers; those that sell goods to the general public are called retailers

Accepted Answer

merchandisers

Question 13

(types of organization term) provide a service to customers or clients

Accepted Answer

service companies

Question 14

merchandisers that sell goods to other businesses are called ____

Accepted Answer

wholesalers

Question 15

merchandisers that sell goods to the general public are called ____

Accepted Answer

retailers

Question 16

____ are increasingly being held responsible for creating and maintaining an ethical work environment including the reporting of accounting information

Accepted Answer

managers

Question 17

____ refers to the standards of conduct for judging right from wrong, honest from dishonest, and fair from unfair. Many situations in business require accountants and managers to weigh the pros and cons of alternatives before making final decisions

Accepted Answer

ethics

Question 18

the sarbanes-oxley act (SOX) of 2002 was primarily aimed at renewing investor confidence in the external financial reporting system. however, it has many implications for managers such as:  (3 things)

Accepted Answer

1. reducing opportunities for error and fraud 2. counteracting incentives for fraud 3. encouraging good character

Question 19

the ____-____ (____) act of 2002 was primarily aimed at renewing investor confidence in the external financial reporting system. however, it has many implications for managers such as:  1. reducing opportunities for error and fraud 2. counteracting incentives for fraud 3. encouraging good character

Accepted Answer

sarbanes-oxley (sox)

Question 20

the three roles of cost in managerial accounting

Accepted Answer

1. managerial decision making  2. cost measurement and management 3. planning, control, and performance evaluation

Question 21

type of costs that involve an actual outlay of cash

Accepted Answer

out-of-pocket

Question 22

the foregone benefit (or lost opportunity) of the path not taken. anytime you choose to do one thing instead of another because of a limit on your time or money, you incur one of these.

Accepted Answer

opportunity cost

Question 23

(direct vs. indirect costs) costs that can be easily and conveniently traced to a unit of product or other cost object

Accepted Answer

direct costs

Question 24

(direct vs. indirect costs) costs that cannot be easily and conveniently traced to a unit of product other cost object

Accepted Answer

indirect costs

Question 25

(direct vs. indirect costs) For California Pizza Kitchen, ____ costs would include the costs of materials and labor that can be traced directly to each pizza produced

Accepted Answer

direct

Question 26

(direct vs. indirect costs) at california pizza kitchen, ____ costs include items such as depreciation on the ovens used to bake the pizza as well as the costs of utilities, advertising, and plant supervising

Accepted Answer

indirect

Question 27

managerial accounting places considerable weight on: a. general accepted accounting principles b. the financial history of the entity c. ensuring that all transactions are properly recorded d. detailed segment reports about departments, products, and customers

Accepted Answer

d. detailed segment reports about departments, products, and customers

Question 28

the plans of management are often expressed formally in: a. financial statements b. performance reports c. budgets d. ledgers

Accepted Answer

c. budgets

Question 29

Match each of the following SOX requirements to the corresponding objective: (A) counteract incentives for fraud. (B) reduce opportunities for error and fraud. (C) encourage good character. 1. establish a tip line for employees to report questionable acts

Accepted Answer

C

Question 30

Match each of the following SOX requirements to the corresponding objective: (A) counteract incentives for fraud. (B) reduce opportunities for error and fraud. (C) encourage good character. 2. increase maximum fines to $5 million

Accepted Answer

A

Question 31

Match each of the following SOX requirements to the corresponding objective: (A) counteract incentives for fraud. (B) reduce opportunities for error and fraud. (C) encourage good character. 3. require management to report on effectiveness of internal controls

Accepted Answer

B

Question 32

Match each of the following SOX requirements to the corresponding objective: (A) counteract incentives for fraud. (B) reduce opportunities for error and fraud. (C) encourage good character. 4. legislate whistle-blower protections

Accepted Answer

C

Question 33

Match each of the following SOX requirements to the corresponding objective: (A) counteract incentives for fraud. (B) reduce opportunities for error and fraud. (C) encourage good character. 5. require external auditors\' report on internal control effectiveness

Accepted Answer

B

Question 34

aims at provide managers with a broader set of information to meet the needs of multiple stakeholders, with the goal of ensuring the company\'s long-term survival in an uncertain and resource-constrained world. this type of accounting focuses on balancing: 1. society 2. economy 3. environment

Accepted Answer

sustainability accounting

Question 35

sustainability accounting focuses on balancing (3 things)

Accepted Answer

1. society 2. economy 3. environment

Question 36

the 3 pillars of sustainability (three p names)

Accepted Answer

people (society), profit (economy), planet (environment)

Question 37

(variable versus fixed costs) ____ costs change, in total, in direct proportion to changes in activity level

Accepted Answer

variable costs

Question 38

(variable versus fixed costs) ____ costs do not change in total regardless of the activity level, at least within some reasonable range of activity. Average or per-unit ____ (same term) costs vary inversely with the number of units produced or the number of customers served.

Accepted Answer

fixed costs

Question 39

(manufacturing versus non manufacturing costs) include all costs incurred to produce the physical product

Accepted Answer

manufacturing costs

Question 40

manufacturing costs are usually grouped into these three main categories: (name all three categories)

Accepted Answer

1. direct materials 2. direct labor 3. manufacturing overhead

Question 41

(manufacturing cost category) the major material inputs that can be physically and conveniently traced directly to the final product

Accepted Answer

direct materials

Question 42

give an example of direct materials

Accepted Answer

glass windows installed in an automobile

Question 43

(manufacturing cost category) the cost of labor that can be physically and conveniently traced to the final product

Accepted Answer

direct labor

Question 44

give an example of direct labor

Accepted Answer

wages paid to automobile assembly workers

Question 45

(manufacturing cost category) includes all costs other than direct materials and direct labor that must be incurred to manufacture a product. these costs cannot be easily traced to specific units produced. they include the following costs at the manufacturing facility: maintenance and repair on production equipment, utilities, property taxes, depreciation, insurance, and salaries for supervisors, janitors, and security guards

Accepted Answer

manufacturing overhead

Question 46

give an example of manufacturing overhead

Accepted Answer

(any of the following) maintenance and repairs on production equipment, utilities, property taxes, depreciation, insurance, and salaries for supervisors, janitors, and security guards

Question 47

prime costs can be calculated by adding (2 things)

Accepted Answer

direct materials and direct labor

Question 48

conversion costs can be calculated by adding (2 things)

Accepted Answer

direct labor and manufacturing overhead

Question 49

(manufacturing versus non manufacturing costs) costs that are associated with running the business and selling the product

Accepted Answer

nonmanufacturing cost

Question 50

(type of non manufacturing cost) costs necessary to get the order and deliver the product. in other words, the costs necessary to secure customers orders and get the finished product into the hands of the customer. these costs are also referred to as order-getting and order-filling costs

Accepted Answer

marketing/selling costs

Question 51

(type of non manufacturing cost) includes all executive, organizational, and clerical costs associated with the general management of an organization that are not classified as production or marketing costs

Accepted Answer

general and administrative costs

Question 52

(product versus period costs: product cost flow) manufacturing costs include all the costs that are involved in acquiring or making a product. In the case of manufactured goods, it includes direct materials, direct labor, and manufacturing overhead. product costs flow through ___ ___ ___ ___, and ___ ___ ___ prior to being sold. once sold, the product costs become part of ___ ___ ___ ___.

Accepted Answer

work in process inventory; finished goods inventory; cost of goods sold

Question 53

product costs are also known as ___ costs

Accepted Answer

inventoriable

Question 54

___ costs are often referred to as \"period costs\" because they result in an expense charge to income in a given period. there can be a delay of one or more periods between the time in which the cost in ___ and when it appears as an ___ on the income state. for example, all selling and administrative costs are typically considered to be period costs. the usual rules of accrue accounting apply to period costs. for example, administrative salary costs are \"incurred\" when they are earned by the employees and not necessarily when they are paid to employees. period cost flow are expensed during period incurred and are labeled as ___ ___ in the income statement.

Accepted Answer

non manufacturing; incurred; expense; period expenses

Question 55

(relevant versus irrelevant costs) a ___ cost has the potential to influence a decision, while an ___ cost will not influence a decision

Accepted Answer

relevant; irrelevant

Question 56

for a cost to be relevant, it must: 1. differ between the decision alternatives. costs that differs between the alternatives are called ___ costs. 2. be incurred in the future rather than the past. costs incurred int he pasts are called ___ costs.

Accepted Answer

differential; sunk

Question 57

for a cost to be relevant, it must: (2 things)

Accepted Answer

1. differ between the decision alternatives. 2. be incurred in the future rather than the past

Question 58

the PRIMARY difference between financial accounting and managerial accounting is that: a. financial accounting is used by internal parties while managerial accounting is used by external parties b. financial accounting is future oriented while managerial accounting is historical in nature c. financial accounting is used by external parties while managerial accounting is used by internal parties d. financial accounting is prepared as needed (perhaps even daily), but managerial accounting is prepared periodically (monthly, quarterly, annually)

Accepted Answer

c. financial accounting is used by external parties while managerial accounting is used by internal parties

Question 59

which of the following companies is most likely to be considered a manufacturing company? a. burger king b. abercrombie and fitch c. supercuts d. maytag

Accepted Answer

d. maytag

Question 60

suppose you have decided that you would like to purchase a new home in five years. to do this, you will need a down payment of approximately $20,000, which means that you need to save $350 each month for the next five years. this is an example of  a. directing b. controlling c. planning/organizing d. leading

Accepted Answer

c. planning/organizing

Question 61

match each of the following characteristics that describe (a) financial accounting, (b) managerial accounting, (c) both financial and managerial accounting, or (d) neither financial nor managerial accounting 1. is future oriented

Accepted Answer

b. managerial accounting

Question 62

match each of the following characteristics that describe (a) financial accounting, (b) managerial accounting, (c) both financial and managerial accounting, or (d) neither financial nor managerial accounting 2. is used primarily by external parties

Accepted Answer

a. financial accounting

Question 63

match each of the following characteristics that describe (a) financial accounting, (b) managerial accounting, (c) both financial and managerial accounting, or (d) neither financial nor managerial accounting 3. is relied on for making decisions

Accepted Answer

c. both

Question 64

match each of the following characteristics that describe (a) financial accounting, (b) managerial accounting, (c) both financial and managerial accounting, or (d) neither financial nor managerial accounting 4. is historical in nature

Accepted Answer

a. financial accounting

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