Test 1 Managerial Accounting – Flashcards

question
Managerial accounting focuses on providing information for internal planning and control
answer
True
question
A budget is a managerial accounting tool used in the planning process
answer
True
question
Comparing actual performance to previously budgeted amounts is part of the
answer
Controlling function of managerial accounting
question
Which of the rolling statements is true of menegrial accounting
answer
Managerial accounting information is used to help managers plan and control their operations
question
Managements accountability to its suppliers and vendors is to
answer
Make timely payments and comply with contract terms
question
In which of the following ways is the management of a company accountable to its communities
answer
ensuring the company environmental impact is not harmful to its community
question
__ is a philosophy of continuous improvement of products and processes
answer
Total Quality Management (TQM)
question
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
answer
Just-In-Time (JIT) Management
question
An Enterprise Resource Planning System (ERP) __
answer
integrates all worldwide functions, departments, and data of a company into a single system
question
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?
answer
confidentiality
question
The income statement of a service company will most likely include __
answer
Salaries Expense
question
Which of the following is true of service company
answer
service companies carry no inventories of products for sale
question
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 __
answer
merchandising company
question
Product costs are expensed
answer
when the products are consumed or sold
question
Goods that have been started in the manufacturing process but are not yet complete are included in the __
answer
Work-In-Process Inventory account
question
Which if the following formulas represents costs of good sold for a merchandising business?
answer
Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold
question
Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer.
answer
Cost of Goods Sold
question
Period costs are the __
answer
costs that are incurred and expensed during the same accounting period
question
Which of the following is a part of manufacturing overhead
answer
factory insurance
question
Which of the following is a product cost
answer
depreciation on production equipment
question
Which of the following would be included as manufacturing overhead for a manufacturing company?
answer
indirect materials cost
question
Which of the following represents the combined sum of direct labor and manufacturing overhead?
answer
conversion costs
question
Which of the following describes the cost of goods manufactured
answer
the cost of those goods that were competed during the period
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question
Managerial accounting focuses on providing information for internal planning and control
answer
True
question
A budget is a managerial accounting tool used in the planning process
answer
True
question
Comparing actual performance to previously budgeted amounts is part of the
answer
Controlling function of managerial accounting
question
Which of the rolling statements is true of menegrial accounting
answer
Managerial accounting information is used to help managers plan and control their operations
question
Managements accountability to its suppliers and vendors is to
answer
Make timely payments and comply with contract terms
question
In which of the following ways is the management of a company accountable to its communities
answer
ensuring the company environmental impact is not harmful to its community
question
__ is a philosophy of continuous improvement of products and processes
answer
Total Quality Management (TQM)
question
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
answer
Just-In-Time (JIT) Management
question
An Enterprise Resource Planning System (ERP) __
answer
integrates all worldwide functions, departments, and data of a company into a single system
question
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?
answer
confidentiality
question
The income statement of a service company will most likely include __
answer
Salaries Expense
question
Which of the following is true of service company
answer
service companies carry no inventories of products for sale
question
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 __
answer
merchandising company
question
Product costs are expensed
answer
when the products are consumed or sold
question
Goods that have been started in the manufacturing process but are not yet complete are included in the __
answer
Work-In-Process Inventory account
question
Which if the following formulas represents costs of good sold for a merchandising business?
answer
Beginning Merchandise Inventory + Purchases and Freight In - Ending Merchandise Inventory = Cost of Goods Sold
question
Which of the following would appear as a line item on the income statements of both a merchandiser and a manufacturer.
answer
Cost of Goods Sold
question
Period costs are the __
answer
costs that are incurred and expensed during the same accounting period
question
Which of the following is a part of manufacturing overhead
answer
factory insurance
question
Which of the following is a product cost
answer
depreciation on production equipment
question
Which of the following would be included as manufacturing overhead for a manufacturing company?
answer
indirect materials cost
question
Which of the following represents the combined sum of direct labor and manufacturing overhead?
answer
conversion costs
question
Which of the following describes the cost of goods manufactured
answer
the cost of those goods that were competed during the period
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