question

Cost of goods available for sale=

answer

Beginning Inventory+Purchases and frieght-in

question

Cost of goods sold=

answer

Cost of goods available for sale- Ending Inventory

question

Under allocated manufacturing overhead results when?

answer

actual overhead is greater than allocated overhead

question

Over allocated manufacturing overhead results when?

answer

Actual overhead is less than allocated overhead

question

When do you determine how much manufacturing overhead is over allocated or under allocated?

answer

At the end of the period

question

If manufacturing overhead has been overallocated during the period, then

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The jobs during the period have been overcosted

question

If manufacturing overhead has been underallocated during the period, then

answer

The jobs during the period have been undercosted

question

Cost of Good Sold account is debited and Finished goods inventory is credited for

answer

the sale of goods to a customer

question

Under which situtation is Finished Goods Inventory debited and work-in-process inventory account credited?

answer

Transfer of goods to the finished goods storeroom

question

The cost of direct labor used in production is recorded as a

answer

debit to work-in-process inventory account

question

The cost of indirect labor used in the factory is recorded as a

answer

debit to manufacturing overhead account

question

How is the cost of direct materials used in production recorded?

answer

Debit to work-in-process inventory account

question

When job costing us used at a service firm, the bill to the client shows

answer

the billing rate and hours spent on the job

question

The_____is the hourly price charged to clients for professional labor

answer

billing rate

question

Service firms develop a predetermined rate for some costs. The rate is called the

answer

indirect cost allocation rate

question

What is the primary factor that causes a "cost" called?

answer

Cost Driver

question

A _____is an estimated manufacturing overhead rate computed during the year.

answer

Predetermined manufacturing overhead rate

question

Assigning manufacturing overhead costs and other indirect costs is called

answer

Cost allocation

question

Manufacturing overhead is allocated on the basis of

answer

-Machine hours -Direct Labor hours -Direct labor costs

question

Allocating manufacturing overhead costs is done

answer

During the period

question

When is the predetermined manufacturing overhead rate computed?

answer

Before the period starts

question

How do you calculate the predetermined manufaturing overhead rate used to allocate manufacturing overhead costs?

answer

By dividing the total estimated manufacturing overhead costs by the total estimated amount of the allocation base

question

_____ laws, or "take-back" laws, create future costs associated with the production of electronic devices and requires manufacturers of electronic devices to take back their products and the end of the products useful lives.

answer

Extended Producer Responsibility (EPR)

question

If a job consists of a batch of identical units, how can managers find the unit cost?

answer

By dividing the total job cost by the number of units in the job

question

The difference between the sales price and the job cost is

answer

Gross Profit

question

How is the cost-plus price determined?

answer

Cost+markup on cost

question

Process costing is used by companies that produce large numbers of identical units of production in a continuous fashion(T/F)

answer

True

question

Job costing systems accumulate the costs for each individual job(T/F)

answer

True

question

A Job costing system can be used by which types of companies?

answer

Service, manufacturing and merchandising buisnesses

question

Which product costing system would better account for a unique product?

answer

Job Costing System

question

Which document authorized the purchases of specific raw materials from a specific supplier?

answer

Purchase Order

question

A___ is used to accumulate the costs of a job

answer

job cost records

question

The___ substantiates the total of the raw materials inventory account shown on the companys balance sheet

answer

Raw materials records

question

Which document informs the storeroom to send specific materials to the factory floor?

answer

Materials Requisition

question

A_____ is a source document used to track employee hours

answer

labor time record

question

A____ is used to accumulate all the direct materials and direct labor used on the job, as well as the manufacturing overhead allocated to the job

answer

job cost record

question

In the basic flow of inventory through a manufacturing system, which of the following occurs last in the job costing system

answer

Cost of goods sold

question

Which of the following types of information differs between alternatives and can affect the future? a. irrelevant b. Relevant c. historical d. predictable

answer

Relevent

question

What is a sunk cost

answer

Never relevent

question

Subtracting the cost of one alternative from the costs of the other alternative would be called the ____cost

answer

differential

question

To forecast total costs are a given level of production, management would use which of the following calculations

answer

Total fixed+(variable costs per unit x total units predicted)

question

Cost of goods sold is a major expense of service companies (t/f)

answer

False

question

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company (T/F)`

answer

True

question

The only difference in the balance sheets of various types of businesses (for example, manufacturing vs. service) is

answer

Current Assets

question

The balance sheet of a service company would include which of the following?

answer

Accounts receivable

question

The income statement of a retailer would include what?

answer

Cost of goods sold

question

the income statements for both a merchandiser and manufacturer would include which of the following?

answer

Operating expenses

question

A merchandisers purchases are equivalent to a manufacturer's

answer

Cost of goods manufactured

question

How to find gross profit?

answer

Sales revenue- Cost of goods sold

question

Which of the following types of companies has raw materials, work in process and finished goods inventory?

answer

Manufacturers

question

Which type of company makes up the largest sector of the United States Economy?

answer

Service companies

question

Which type of company typically produces its own inventory?

answer

Manufacturer

question

A___ company's balance sheet reports just one inventory called "inventory"

answer

Merhandising

question

A factory janitors wages would be classified as___ when determining the cost of a manufactured product

answer

An indirect cost

question

A salesperson salary would be classified as___ when determining the cost of a manufactured product?

answer

A period cost

question

Prime costs consists of

answer

direct materials and direct labor

question

Conversion costs consists of

answer

direct labor and manufacturing overhead

question

Period costs are always recorded as a

answer

expense

question

Which type of system integrates all of the companys departments, worldwide functions, and data?

answer

ERP System

question

According to the sarbanes-oxley act, who is responsible for establishing and maintaining internal controls over financial reporting?

answer

The CEO and CFO

question

The "Triple bottom line" focuses on what three factors that influence a firms ability to survive and thrive in the long run?

answer

Profit, people, planet

question

IFRS stands for`

answer

International Financial Reporting Standards

question

XBRL stands for

answer

Extensible business reporting langauage

question

XBRL can be best described as a

answer

standardized tagging system for financial statement data

question

____is the business philosophy and strategy of manufacturing without waste.

answer

Lean Thinking

question

ISO 9001:2008 is an

answer

certification that a company complies with the international quality standards

question

Which is being fulfilled when management compares the budget to actual results

answer

Controlling

question

Budgets are a way for managers to communicate their

answer

plans

question

Overseeing the day-to-day operations of a company is an example of which of the following functions

answer

Directing

question

Evaluating results against the plan is an example of which of the following management functions

answer

Controlling

question

How often should managerial account reports be prepared?

answer

as often as necessary

question

What position is typically responsible for general financial accounting, managerial accounting, and tax reporting

answer

Controller

question

Preparing financial statements in accordance with GAAP is an example of

answer

Competence

question

Communicating information fairly and objectively is an example of which ethical standard?

answer

Credibility

question

Preforming duties in accordance with relevant laws, regulations, and technical standards comprise the IMA professional standard of

answer

Competence

question

Inflating your expenses for a company--sponcered conference that discredits the profession is a violation of what ethical standard?

answer

Integrity

question

What ethical standard is being violated when you tell a friend that the company you work for is going to report lower than expected earnings next week?

answer

Confidentiality

question

What is the name of the professional association for managerial accountants?

answer

Institute of managerial accountants

question

How do you find total variable costs?

answer

qty capacity X variable cost per unit

question

How do you find total product costs?

answer

Total variable costs +total fixed costs

question

How do you find current average product costs per unit?

answer

Total product costs/current years produced units

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