question

only manufacturing companies have finished good inventory

answer

true

question

indirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?

answer

manufacturing overhead

question

service companies must carry a large amount of inventory to meet consumer demand

answer

false

question

merchandising companies include both wholesalers and retailers

answer

true

question

research and development is needed to improve products and to design new products

answer

true

question

conversion costs consist of

answer

direct labor manufacturing overhead

question

planning, directing and controlling are a manager's three primary responsibilities

answer

true

question

directing means setting goals and objectives for the company and determining how to achieve them

answer

false

question

budgets are the quantitative expression of a manager's plans

answer

true

question

comparing actual results to budgets is an example of which managerial function

answer

controlling

question

the primary purpose of managerial accounting information is to help external users make investing and lending decisions

answer

false

question

managerial accounting reports are always prepared on a quarterly and annual basis

answer

false

question

technology has been a driving factor in the changing roles of management accountants

answer

true

question

the standards in the IMA Statement of Ethical Professional Practice includes

answer

competence confidentiality integrity credibility

question

inflating your expenses for a company - sponsored conference that discredits the profession is a violation of which ethical standard?

answer

integrity

question

certifications issued by the IMA

answer

CMA

question

businesses are now viewing sustainability and social responsibility as opportunities for innovation and business development

answer

true

question

the Sarbanes-Oxley Act requires companies to have their internal audit procedures assessed at least

answer

annually

question

SOX do not allow CPA firms to provide certain non-audit services to companies during the same period of time in which they are providing the services

answer

true

question

oral and written communications skills are considered among the skills that are critical to management accountants

answer

true

question

controlling costs across the whole value chain often requires a trade-off between the individual elements of the value chain

answer

true

question

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

answer

merchandise inventory

question

the cost of lighting the factory would be classified as ___ when determining the cost of a manufactured product

answer

indirect cost

question

costs can be either direct of indirect depending upon the cost object

answer

true

question

direct labor direct materials

answer

prime cost

question

total manufacturing cost to account for

answer

beginnings work in progress inventory +manufacturing cost incurred (direct labor, direct materials, MOH)

question

cost of goods manufactured

answer

total manufacturing cost to account for -ending work in progress inventory

question

cost of goods available for sale

answer

beginning finished inventory +cost of goods manufactured

question

cost of goods sold

answer

cost of goods available for sale -ending finished goods inventory

question

snow removal business

answer

service company

question

the schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company

answer

true

question

how do fixed costs per unit behave

answer

they increase as production decreases

question

which type of company makes up the largest sector of the united states economy?

answer

service companies

question

managerial accounting differs from financial accounting in that managerial accounting

answer

emphasizes data relevance over data objectivity

question

which of the following corporate positions is responsible for raising capital and investing funds

answer

treasurer

question

which of the following is not an activity in the value chain

answer

administration

question

a cost that can be traced to a cost object is known as a

answer

direct cost

question

both Selling, general, and administrative expenses and Operating expenses

answer

period cost

question

documents specifies the materials needed to produce a job

answer

bill of materials

question

used to accumulate all the manufacturing costs assigned to a job with direct materials and direct labor

answer

job cost record

question

amount of manufacturing overhead recorded on a job cost record for a particular job is found by

answer

allocating manufacturing overhead to the job

question

jobs will be overcosted

answer

if manufacturing overhead is overallocated

question

when a job is completed the total cost of manufacturing the job should be moved to which of the following general ledger accounts

answer

finished goods inventory

question

when using job costing at a service firm

answer

both direct and indirect costs are assigned to a clients job

question

total estimated MOH cost/total estimated amount of allocation base

answer

predetermined MOH rate

question

predetermined MOH rate x actual amount of allocation base used by job

answer

MOH allocated to a job

question

documents authorizes the purchase of specific raw materials from a specific supplier

answer

purchase order

question

job costing is often used by professional service producers, such as law firms

answer

true

question

the key to allocating indirect manufacturing costs to jobs is to identify an appropriate allocation base

answer

true

question

manage the company on a daily basis hires other executives to run various areas

answer

chief executive officer CEO

question

responsible for the company's operations research and development production distribution

answer

chief operating officer COO

question

responsible for all of the company's financial concerns

answer

chief financial officer CFO

question

professional association for management accountants in the US

answer

institute of management accountants IMA

question

most common business sectors

answer

service merchandising manufacturing

question

research and development design production or purchases marketing distributions customer service

answer

value chain

question

the two product costing systems most manufactures use

answer

process and job costing

question

used by companies that mass-manufacture identical units

answer

process costing

question

indicates the quantity and types of inventory that are scheduled to be manufactured during the period

answer

production schedule

question

detailed information about each item in stock, including the number of units received, used and the balance in stock

answer

raw materials record

question

incoming shipments of raw materials are counted and recorded as well as the individual raw materials records

answer

receiving report

ACCT 2002 Exam 1 – Flashcards

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