Test 1 Managerial Accounting – Flashcards
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Managerial accounting focuses on providing information for internal planning and control
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True
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A budget is a managerial accounting tool used in the planning process
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True
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Comparing actual performance to previously budgeted amounts is part of the
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Controlling function of managerial accounting
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Which of the rolling statements is true of menegrial accounting
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Managerial accounting information is used to help managers plan and control their operations
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Managements accountability to its suppliers and vendors is to
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Make timely payments and comply with contract terms
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In which of the following ways is the management of a company accountable to its communities
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ensuring the company environmental impact is not harmful to its community
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__ is a philosophy of continuous improvement of products and processes
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Total Quality Management (TQM)
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Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be refilled
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Just-In-Time (JIT) Management
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An Enterprise Resource Planning System (ERP) __
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integrates all worldwide functions, departments, and data of a company into a single system
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Seria, Inc. has received a bulk order from an overseas client. Asa result, the reported earnings this year are expected to be significantly higher than the estimates of financial analysts. Joshua, an accountant at Seria, tells this to one of his friends. Which of the IMA standards has Joshua violated?
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confidentiality
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The income statement of a service company will most likely include __
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Salaries Expense
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Which of the following is true of service company
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service companies carry no inventories of products for sale
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One of the primary activities of Rex, Inc. is to purchase hats from Viva, Inc. in Texas and sell them to its customers in Washington for a profit. It is likely that Rex is a __
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merchandising company
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Product costs are expensed
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when the products are consumed or sold
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Goods that have been started in the manufacturing process but are not yet complete are included in the __
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Work-In-Process Inventory account
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Which if the following formulas represents costs of good sold for a merchandising business?
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Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold
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Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer.
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Cost of Goods Sold
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Period costs are the __
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costs that are incurred and expensed during the same accounting period
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Which of the following is a part of manufacturing overhead
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factory insurance
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Which of the following is a product cost
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depreciation on production equipment
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Which of the following would be included as manufacturing overhead for a manufacturing company?
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indirect materials cost
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Which of the following represents the combined sum of direct labor and manufacturing overhead?
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conversion costs
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Which of the following describes the cost of goods manufactured
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the cost of those goods that were competed during the period
