a.
Information on a company's past performance is provided to external parties by
answer
financial accounting
question
b.
systems are chosen by comparing the costs versus the benefits of the system and are not restricted by GAAP (or International Financial Reporting Standards, IFRS, in the case of companies headquartered in many countries outside of the United States).
answer
Managerial accounting
question
c.
systems report on various segments or business units of the company.
answer
Managerial accounting
question
d.
Financial accounting develops reports for external parties such as
-----
and------
answer
creditors,shareholders
question
e.
When managers evaluate the company's performance compared to the plan, they are performing the---- role of management.
answer
controlling
question
f.
CPAs audit the------ statements of public companies.
answer
financial accounting
question
g.
Companies must follow GAAP (or International Financial Reporting Standards, IRFS, in the case of companies headquartered in many countries outside of the United States) in their ---------systems.
answer
financial accounting
question
h.
Choosing goals and the means to achieve them is the---- function of management.
answer
planning
question
i.
Decision makers inside a company are the
answer
managers
question
US companies must follow GAAP (or International Financial Reporting Standards, IFRS, in the case of companies headquartered in many countries outside of the United States) in their
-----systems
answer
financial accounting
question
Financial accounting develops reports for external parties such as----
and-----
answer
shareholders.creditors
question
When managers evaluate the company's performance compared to the plan, they are performing the----
role of management.
answer
controlling
question
are decision makers inside a company.
answer
Managers
question
provides information on a company's past performance to external parties.
answer
Financial accounting
question
systems are not restricted by GAAP (or International Financial Reporting Standards, IFRS, in the
case of companies headquartered in many countries outside of the United States) but are chosen by comparing the costs
versus the benefits of the system.
answer
Managerial accounting
question
Choosing goals and the means to achieve them is the----
function of management.
answer
planning
question
systems report on various segments or business units of the company.(managerial/financial) accounting information
answer
Managerial accounting
question
statements of public companies are audited annually by CPAs(managerial/financial) accounting information
answer
Financial accounting
question
Reporter from The Wall Street Journal
answer
Financial accounting information
question
Regional division managers
answer
Managerial accounting information
question
Potential investors(managerial/financial) accounting information
answer
Financial accounting information
question
Bookkeeping Department
answer
Financial accounting information
question
Manager of the Service Department
answer
Managerial accounting information
question
Wall Street analyst
answer
Financial accounting information
question
Division controller(managerial/financial) accounting information
answer
Both financial and managerial accounting information
question
State tax agency auditor???
answer
State tax agency auditor
question
External auditor (public accounting firm)
answer
Financial accounting information
question
Loan officer at the company's bank
answer
Financial accounting information
question
Board of directors
answer
Both financial and managerial accounting information
question
Internal auditor(managerial/financial) accounting information
answer
Both financial and managerial accounting information
question
SEC examiner(financial/managerial)
answer
Financial accounting information
question
Current stockholders
answer
Financial accounting information
question
Keep information confidential except when disclosure is authorized or legally required
answer
Confidentiality
question
Disclose all relevant information that could reasonably be expected to influence
an intended user's understanding of the reports, analyses, or recommendations.
answer
Credibility
question
Disclose delays or deficiencies in information, timeliness, processing, or internal
controls in conformance with organization policy and/or applicable law.(integrity/competence/credibility/confidentiality)
answer
Credibility
question
Communicate information fairly and objectively.(integrity/competence/credibility/confidentiality)
answer
Credibility
question
Refrain from using confidential information for unethical or illegal advantage
answer
Confidentiality
question
Inform all relevant parties regarding the appropriate use of confidential
information. Monitor subordinates' activities to ensure compliance.(integrity/competence/credibility/confidentiality)
answer
Confidentiality
question
Mitigate actual conflicts of interest. Regularly communicate with business
associates to avoid apparent conflicts of interest. Advise all parties of any
potential conflicts.((integrity/competence/credibility/confidentiality) )
answer
Integrity
question
Maintain an appropriate level of professional expertise by continually developing
knowledge and skills.(integrity/competence/credibility/confidentiality)
answer
Competence
question
Recognize and communicate professional limitations that would preclude
responsible judgment or successful performance of an activity.(integrity/competence/credibility/confidentiality)
answer
Competence
question
Perform professional duties in accordance with relevant laws, regulations, and
technical standards.(integrity/competence/credibility/confidentiality)
answer
Competence
question
Abstain from engaging in or supporting any activity that might discredit the
profession.
answer
Integrity
question
Refrain from engaging in any conduct that would prejudice carrying out duties
ethically.
answer
Integrity
question
Provide decision support information and recommendations that are accurate,
clear, concise, and timely.
answer
Competence
question
The
----is geared toward producing periodic financial statements that will be used by investors
and creditors to make investment and lending decisions.
answer
financial accounting system
question
improves the quality of thought by skillfully analyzing, assessing, and reconstructing
initial thoughts.
answer
Critical thinking
question
The goal of producing near perfection with less than 3.4 defects per one million opportunities is called
answer
Six Sigma
question
The-----
is the person responsible for raising the firm's capital and investing its funds.
answer
treasurer
question
The three pillars of sustainability are:----
,------
, and-----
answer
social/environmental/economic
question
The
-----is the person responsible for general financial accounting, managerial accounting,
and tax reporting.
answer
controller
question
The role of the
-----function is to ensure that the company's internal controls and risk
management policies are functioning properly.
answer
internal audit
question
The
-----------was enacted to restore trust in publicly traded corporations, their management, their
financial statements, and their auditors.
answer
Sarbanes-Oxley Act of 2002
question
is a broad holistic report that describes all material elements of value creation, not just the
financial elements.
answer
Integrated report
question
is the management process of evaluating the results of business operations against the
plan and making adjustments to keep the company pressing toward its goals.
answer
Controlling
question
is the management process of overseeing the company's day-to-day operations.
answer
Directing
question
serves the information needs of people in accounting as well as people in marketing and
in the warehouse.
answer
ERP
question
is the ability to meet the needs of the present without compromising the ability of future
generations to meet their own needs.
answer
Sustainability
question
The ------
manages the company on a daily basis.
answer
CEO
question
--------
is the management process of setting goals and objectives for the company and determining
how to achieve them
answer
Planning
question
typically, the treasurer and the controller report directly to the
-----
answer
CFO
question
Which of the following management responsibilities often involves evaluating the results of operations against the budget?
A.
Directing
B.
Controlling
C.
Planning
D.
None of the above
answer
B.
Controlling
question
This course is dealing with managerial accounting versus financial accounting. One of the biggest differences between the two is
A.
managerial accounting is not as important as financial accounting.
B.
managerial accounting has strict deadlines when it provides information to managers and in financial accounting organiazation issue reports to investors, shareholders and creditors when it thinks it is needed.
C.
managers and other internal organization users will receive various reports to help them achieve their goals and objectives, whereas financial accounting deals with a set of financial statements that are provided to external users.
D.
financial accounting deals with internal reports and managerial accounting deals with making information available to third parties (investors, creditors, shareholders).
answer
C.
managers and other internal organization users will receive various reports to help them achieve their goals and objectives, whereas financial accounting deals with a set of financial statements that are provided to external users.
question
Which of the following corporate positions is responsible for general financial accounting, managerial accounting, and tax reporting?
A.
Chief Operating Officer (COO)
B.
Internal audit
C.
Controller
D.
Treasurer
answer
C.
Controller
question
Management accountants work with many different groups within a company. This concept is best
described as?
A.
Audit Committee
B.
Cross-functional teams
C.
Integrity
D.
Extensible business reporting
answer
B.
Cross-functional teams
question
Ethical Standards are critical for management accountants. Which one best relates to Competance?
A.
Inform all relevant parties regarding appropriate use of confidentail information.
B.
Mitigate actual conflicts of interest.
C.
Perform professional duties in accordance with laws, regulations and technical standards.
D.
Communicate information fairly and objectively.
answer
C.
Perform professional duties in accordance with laws, regulations and technical standards.
question
Of the following skills, which are needed by today's management accountants?
A.
Cost management
B.
Decision analysis
C.
Strategic thinking
D.
All of the above
answer
D.
All of the above
question
Due to many organizations reporting fraudulent financial statements, companies on certain stock exchanges are required to form an audit committee. An audit committee is/does all of the following except:
A.
internal audit reports to the audit committee
B.
are employees of the company
C.
sub-set of the Board of Directors
D.
hire the external auditors
answer
B.
are employees of the company
question
Ethical Standards are critical for management accountants. Which one best relates to Integrity?
A.
Communicate information fairly and objectively.
B.
Inform all relevant parties regarding appropriate use of confidentail information.
C.
Abstain from engaging in or supporting any activity that might discredit the profession.
D.
Monitoring subordinates' activities to ensure compliance with confidential information.
answer
C.
Abstain from engaging in or supporting any activity that might discredit the profession.
question
Communicate information fairly and objectively.(integrity/competence/credibility/confidentiality)
answer
Credibility
question
Recognize and communicate professional limitations that would preclude
responsible judgment or successful performance of an activity.(integrity/competence/credibility/confidentiality)
answer
Competence
question
Mitigate actual conflicts of interest. Regularly communicate with business-----
associates to avoid apparent conflicts of interest. Advise all parties of any
potential conflicts.
answer
Integrity
question
Provide decision support information and recommendations that are accurate, clear, concise, and timely.(integrity/competence/credibility/confidentiality)
answer
Competence
question
Abstain from engaging in or supporting any activity that might discredit the profession.
answer
Integrity
question
Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.(integrity/competence/credibility/confidentiality)
answer
Credibility
question
Inform all relevant parties regarding the appropriate use of confidential
information. Monitor subordinates' activities to ensure compliance.(integrity/competence/credibility/confidentiality)
answer
Confidentiality
question
Perform professional duties in accordance with relevant laws, regulations, and-----
technical standards.
answer
Competence
question
Refrain from engaging in any conduct that would prejudice carrying out duties ethically.
answer
Integrity
question
Keep information confidential except when disclosure is authorized or legally
required.
answer
Confidentiality
question
Disclose delays or deficiencies in information, timeliness, processing, or internal
controls in conformance with organization policy and/or applicable law.(integrity/competence/credibility/confidentiality)
answer
Credibility
question
Refrain from using confidential information for unethical or illegal advantage.
answer
Confidentiality
question
Maintain an appropriate level of professional expertise by continually developing
knowledge and skills.
answer
-Competence
question
Managers' responsibilities in an organization include decision making and continuous feedback. Of the three direct responsibilities of a manager, which one covered comparing the actual results to the budget the manger is responsible for?
A.
Planning
B.
Controlling
C.
Directing
D.
Decision making
answer
B.
Controlling
question
This course is dealing with managerial accounting versus financial accounting. One of the biggest differences between the two is
A.
managers and other internal organization users will receive various reports to help them achieve their goals and objectives, whereas financial accounting deals with a set of financial statements that are provided to external users.
B.
financial accounting deals with internal reports and managerial accounting deals with making information available to third parties (investors, creditors, shareholders).
C.
managerial accounting is not as important as financial accounting.
D.
managerial accounting has strict deadlines when it provides information to managers and in financial accounting organiazation issue reports to investors, shareholders and creditors when it thinks it is needed
answer
managers and other internal organization users will receive various reports to help them achieve their goals and objectives, whereas financial accounting deals with a set of financial statements that are provided to external users.
question
In the future, after graduation, you will end up working with various individuals accross the organization, not just employees in your own department. What term is best associated with this?
A.
Board of directors
B.
groups
C.
accounting department
D.
cross-functional teams
answer
D.
cross-functional teams
question
Which of the following is false?
A.
Globalization has increased the necessity for more detailed and accurate cost information.
B.
The triple bottom line focuses on three items: net income, net assets, and return on investment.
C.
ERP systems integrate information from all company functions into a centralized data warehouse.
D.
Lean operations is a philosophy and business strategy of operating without waste.
answer
B.
The triple bottom line focuses on three items: net income, net assets, and return on investment.
question
report three types of inventory on the balance sheet
answer
Manufacturing companies
question
for a company such as Best Buy (consumer electronics) includes all of the costs necessary to purchase products and get them onto the store shelves.
answer
Inventory (merchandise)
question
Most for-profit organizations can be described as being in one (or more) of three categories:
answer
service companies,
merchandising companies, and
manufacturing companies
question
is composed of goods partially through the manufacturing process (not finished yet).
answer
Work in process inventory
question
Forever 21, Target, and Kohl's are all examples of
.
answer
merchandising companies
question
typically do not have an inventory account.
answer
Service companies
question
Johnson & Johnson, a personal care products manufacturer, converts
-----
into finished products.
answer
raw materials inventory
question
A law office, an advertising agency, and a hospital are all examples of
answer
service companies
question
buy products in bulk from producers, marks them up, and resell to retailers.
answer
Wholesalers
question
are the costs of transforming direct materials into finished goods.
answer
Conversion costs
question
include R&D, marketing, distribution and customer service costs.
answer
Period costs
question
Direct material plus direct labor equals
answer
prime costs
question
Steel, tires, engines, upholstery, carpet, and dashboard instruments are used in the assembly of a car. Since the manufacturer can trace the cost of these materials (including freight-in and import duties) to specific units or batches of vehicles, they are considered ------
of the vehicles
answer
direct costs
question
Costs that can be directly traced to a(n) -----
are called
-----
answer
cost object/direct costs
question
---- are initially treated as -----
on the balance sheet.
answer
Product costs/assets
question
The allocation process results in a less precise cost figure being ----
to the
------
answer
assigned/cost objects
question
------ cannot be directly traced to a(n)
------
answer
Indirect costs/cost object
question
------ include the costs of all resources used throughout the value chain.
answer
Total costs
question
U.S. GAAP requires companies to use only
------
for inventory reported on external financial statements.
answer
product costs
question
Company-paid
----- may include health insurance, retirement plan contributions, payroll taxes, and paid vacations.
answer
fringe benefits
question
When manufacturing companies sell their finished products, the costs of those finished products are removed from inventory and expensed as
------
answer
cost of goods sold
question
Property taxes—30% of building is used for sales, marketing, and
administrative offices ???
answer
period cost/ null
question
Property taxes—70% of building is used for manufacturing
answer
product cost/ MOH
question
Wages and benefits paid to assembly-line workers in the manufacturing plant
answer
product cost/DL
question
Depreciation on automated production equipment
answer
product cost/MOH
question
Salaries paid to quality control inspectors in the plant
answer
product cost/MOH
question
Repairs and maintenance on factory equipment
answer
product cost/MOH
question
Standard packaging materials used to package individual units of product for
sale (for example, cereal boxes in which cereal is packaged)
answer
product cost/DM
question
Lease payment on administrative headquarters
answer
period cost/null
question
Telecommunications costs for the customer service call center
answer
period cost/null
question
Newspaper advertisements
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
D.Marketing
question
Payment to consultant for advice on location for new store
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
A.R&D
question
Purchases of merchandise
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
C.Purchases
question
Freight-in
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
C.Purchases
question
Salespeople's salaries
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
D.Marketing
question
Depreciation expense on delivery trucks
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
E.Distribution
question
Research on selling satellite radio service
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
A.R&D
question
Customer Complaint Department
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
F.Costumer service
question
Rearranging store layout
A.R&D
B.Design
C.Purchases
D.Marketing
E.Distribution
F.Costumer service
answer
B.Design
question
Which of the following types of companies would have work in process inventory?
A.
Service
B.
Merchandising
C.
Manufacturing
D.
All of the above
answer
C.
Manufacturing
question
Kohl's Department Store, a clothing and home goods store, is primarily what type of company?
A.
Retailer
B.
Manufacturer
C.
Service
D.
Real estate
answer
A.
Retailer
question
Which box on the value chain captures the cost of building a prototype of the product?
A.
Marketing
B.
Distribution
C.
Design
D.
Production or Purchases
answer
C.
Design
question
Lucky Cow Dairy provided the following expense information for May:
Assembly−line workers' wages
Caps for milk bottles
Reconfiguring the assembly line
Customer support hotline
Delivery expenses to customers
Depreciation on factory equipment
Plastic milk bottles
Salaries of salespeople
Salaries of research scientists
Customer toll−free order line
What is the total cost for the production category of the value chain?
answer
= assembly line workers wages + caps for milk bottle + depreciation on factory equipments + plastic milk bottles
question
Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?
A.
Machinery depreciation in the factory
B.
Cost of the automobile engines
C.
Plant utilities
D.
Plant supervisor salary
answer
B.
Cost of the automobile engines
question
The value chain describes the costs associated with making a product. What box captures the costs to build the product; the inventory related costs ("inventoriable product costs") that is used for reporting inventory on the balance sheet until it is sold and then is reported as Costs of Goods Sold on the income statement?
A.
Production or Purchases
B.
Marketing
C.
All of them
D.
Reserach & Development
answer
A.
Production or Purchases
question
An assembly line worker in the factory would be considered?
A.
direct materials.
B.
period costs.
C.
direct labor.
D.
indirect labor and manufacturing overhead.
answer
C.
direct labor.
question
Utilites and propert taxes for the plant factory would be considered?
A.
manufacturing overhead.
B.
direct materials.
C.
direct labor.
D.
indirect labor and manufacturing overhead.
answer
A.
manufacturing overhead.
question
Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:
Depreciation on sales office
Depreciation on factory equipment
Factory supervisor salary
Sales commissions
Lubricants used in factory equipment
Insurance costs for factory
Wages paid to maintenance workers
Fabric used to upholster furniture
Freight−in (on raw materials)
Costs of delivery to customers
Wages paid to assembly−line workers
Lumber used to build product
Utilities in factory
Utilities in sales office
Manufacturing overhead costs for Country Furniture Company totaled
answer
Factory supervisor salary+Lubricants used in factory equipment+insurance+ages paid to maintenance workers+Utilities in factory+Depreciation on factory equipment
=
question
Progressive Insurance Company sells insurance polices and related products. Profressive Insurance Company is primarily what type of company?
A.
Manufacturer
B.
Retailer
C.
Service
D.
Real estate
answer
C.
Service
question
Which element of the value chain would a technical support hotline for customers be considered?
A.
Marketing
B.
Distribution
C.
Design
D.
Customer service
answer
D.
Customer service
question
A cost that can be traced to a cost object is known as a(n)
A.
period cost.
B.
indirect cost.
C.
product cost.
D.
direct cost.
answer
D.
direct cost.
question
The value chain describes the costs associated with making a product. What box(es) are expensed immediately when incurred on the income statement as operating expenses/SGA ("period costs")?
A.
Production or Purchases
B.
All of them
C.
Marketing
D.
All of them, except production or purchases
answer
D.
All of them, except production or purchases
question
An assembly line worker in the factory would be considered?
A.
direct materials.
B.
period costs.
C.
indirect labor and manufacturing overhead.
D.
direct labor.
answer
D.
direct labor.
question
Rent paid for the plant factory would be considered?
A.
manufacturing overhead.
B.
direct labor.
C.
direct materials.
D.
indirect labor and manufacturing overhead.
answer
A.
manufacturing overhead.
question
Costs of Goods Sold of a manufacturing represents the costs related to building a product that are expensed when it is sold. To determine Costs of Goods Sold, three formulas where used representing the three different categories of inventory. Which schedule is based on work in process inventory?
A.
Cost of Goods Sold
B.
Costs of Goods Manufactured
C.
Income Statement
D.
Direct Materials Used
answer
B.
Costs of Goods Manufactured
question
Janitorial services company
Job costing/process costing
A(n)
----- is used to accumulate all of the costs affiliated with each job.
answer
job cost record
question
All direct laborers in the factory fill out a(n)
------.
answer
labor time record
question
The accounting department will not pay a(n)
----- unless it agrees with the quantity of parts both ordered and received.
answer
invoice
question
Each item in the raw materials storeroom has its own
-----
answer
raw materials record
.
question
The
------ is a control for the materials stored in the storeroom. In order to get direct materials, a(n)
------ must be presented.
answer
raw materials record
/materials requisition
question
Before production begins, the manufacturer's purchasing department issues
------
to its supplier for needed direct materials.
answer
purchase orders
question
A(n)
------ is typically a duplicate of the purchase order but without the quantity pre-listed on the form.
answer
receiving report
question
The
------ is like a list of ingredients in a recipe, stating the materials needed to produce a product.
answer
bill of materials
question
For which of the following would job costing not be appropriate?
A.
Manufacturer of custom-ordered production equipment
B.
Manufacturer of mass-produced carbonated beverages
C.
Electrician
D.
Law firm
answer
B.
Manufacturer of mass-produced carbonated beverages
question
Which of the following documents specifies the materials needed to produce a job?
A.
Raw materials records
B.
Bill of materials
C.
Receiving report
D.
Production schedule
answer
B.
Bill of materials
question
The amount of manufacturing overhead recorded on a job cost record for a particular job is found by
A.
allocating manufacturing overhead to the job.
B.
tracing manufacturing overhead to the job.
C.
either tracing or allocating manufacturing overhead costs (management's choice).
D.
None of the answers listed is correct.
answer
A.
allocating manufacturing overhead to the job.
question
Which statement is FALSE regarding Manufacturing Overhead?
A.
Examples of manufacturing overhead include costs of raw materials, assembly line workers, and other costs to produce the product.
B.
Examples of manufacturing overhead include: plant supervision, depreciation of plant and factory equipment, insurance and taxes on the plant, indirect materials and indirect labor.
C.
Manufactuirng overhead includes manufacturing costs of making the product, that are not direct materials and direct labor.
D.
Manufacturing overhead can include indirect materials and indirect labor (supervision, janitorial, engineers, etc.)
answer
A.
Examples of manufacturing overhead include costs of raw materials, assembly line workers, and other costs to produce the product.
question
When allocating manufacturing overhead using a predetermined manufacturing overhead rate, ______ can be used as a basis for allocation.
A.
machine hours
B.
direct labor costs
C.
direct labor hours
D.
all of the above can be used
answer
D.
all of the above can be used
question
A.
allocated overhead all year long is less than the actual manacturing overhead at year end
B.
estimated overhead at the beginning of the year is greater than the actual manacturing overhead at year end
C.
estimated overhead at the beginning of the year is less than the actual manacturing overhead at year end
D.
allocated overhead all year long is greater than the actual manacturing overhead at year end
answer
A.
allocated overhead all year long is less than the actual manacturing overhead at year end
question
Chapter 3 discusses job costing. Process costing was briefly discussed. Which company listed below would most likely use process costing.
A.
Engineering firm
B.
Law firm
C.
custom jewelry maker
D.
soda pop manufacturer
answer
D.
soda pop manufacturer
question
Which of the following documents specifies the materials needed to produce a job?
A.
Production schedule
B.
Raw materials records
C.
Receiving report
D.
Bill of materials
answer
D.
Bill of materials
question
When allocating MANUFACTURING OVERHEAD to a job.....
A.
it should be allocated based on the predetermined manufacturing overhead rate at the end of the year for all jobs.
B.
it should be allocated based on the indirect cost allocation rate.
C.
it should be allocated based on the predetermined manufacting overhead rate when the job is being completed.
D.
manufacturing overhead should not be allocated to any jobs and it is expensed as it is incurred.
answer
C.
it should be allocated based on the predetermined manufacting overhead rate when the job is being completed.
question
Which statement is FALSE regarding Manufacturing Overhead?
A.
Manufactuirng overhead includes manufacturing costs of making the product, that are not direct materials and direct labor.
B.
Examples of manufacturing overhead include: plant supervision, depreciation of plant and factory equipment, insurance and taxes on the plant, indirect materials and indirect labor.
C.
Manufacturing overhead can include indirect materials and indirect labor (supervision, janitorial, engineers, etc.)
D.
Examples of manufacturing overhead include costs of raw materials, assembly line workers, and other costs to produce the product.
answer
D.
Examples of manufacturing overhead include costs of raw materials, assembly line workers, and other costs to produce the product.
question
In job costing, what is included in the cost of a job?
A.
manufacturing overhead
B.
direct materials, direct labor and manufacturing overhead
C.
direct labor and manufacturing overhead
D.
direct materials and direct labor
answer
B.
direct materials, direct labor and manufacturing overhead
question
Underallocated/undercosted overhead occurs when
A.
allocated overhead all year long is greater than the actual manacturing overhead at year end
B.
allocated overhead all year long is less than the actual manacturing overhead at year end
C.
estimated overhead at the beginning of the year is greater than the actual manacturing overhead at year end
D.
estimated overhead at the beginning of the year is less than the actual manacturing overhead at year end
answer
B.
allocated overhead all year long is less than the actual manacturing overhead at year end
question
What is the difference between a service firm and a manufacturer?
A.
service firms allocate indirect period costs and a manufacturer allocates manufacturing overhead
B.
the cost of a job for a service firm consists of direct labor and indirect costs and a cost of a job for a manufacturer consists of direct materials, direct labor and manufacturing overhead
C.
a service firms largest cost of a job is labor where as a typical manufacturer direct labor is not the largest component but only part of the total cost of a job.
D.
All of the above are differences between a service firm and a manufacturer
answer
D.
All of the above are differences between a service firm and a manufacturer
question
1.
Patents are obtained for each new type of container mold.
answer
Product-level
question
2
Each type of container has its own unique molds.
answer
Product-level
question
3.
Routine maintenance is performed on the extrusion machines.
answer
Facility-level
question
4.
The sales force incurs travel expenses to attend various trade shows throughout the country to market the containers.
answer
Facility-level
question
5.
Plastic resins are used as the main direct material for the containers.
answer
Unit-Level
question
6.
The extrusion machine is calibrated for each batch of containers made.
answer
Batch-level
question
7
A plant manager oversees the entire manufacturing operation.
answer
Facility-level
question
8.
Rent is paid for the building that houses the manufacturing processes.
answer
Facility-level
question
9.
Each container product line has a product line manager.
answer
Product-level
question
10.
Each container is cut from the mold once the plastic has cooled and hardened.
answer
Unit-Level
question
1.
In bidding for jobs, managers lost bids they expected to win and won bids they expected to lose.
answer
More likely to benefit.
question
2.
The company operates in a very competitive industry.
answer
More likely to benefit.
question
3.
The company produces few products, and the products consume resources in a similar manner.
answer
Less likely to benefit.
question
4.
The company has very few indirect costs.
answer
Less likely to benefit.
question
5.
The company produces high volumes of some of its products and low volumes of other products.
answer
More likely to benefit.
question
6
The company has reengineered its production process but has not changed its accounting system. They are
answer
More likely to benefit.
question
a.
There is an emphasis on building in quality.
answer
Lean production
question
b.
The final operation in the production sequence "pulls" parts from the preceding operation.
answer
Lean production
question
c.
Employees do a variety of jobs, including maintenance and setups as well as operation of machines.
answer
Lean production
question
d.
Suppliers make frequent deliveries of small quantities of raw materials- this is what type of production.
answer
Lean production
question
e.
Each employee is responsible for inspecting his or her own work.
answer
Lean production
question
f.
Suppliers can access the company's intranet.
answer
Lean production
question
g.
Large stocks of finished goods protect against lost sales if customer demand is higher than expected.
answer
Traditional production
question
h.
The workflow is continuous to attempt to balance the rate of production with the rate of demand.(which type of production)
answer
Lean production
question
i.
Setup times are long.
answer
Traditional production
question
j.
A workplace organization system called "5S" is frequently used to keep work spaces clean and organized. What type of production?
answer
Lean production
question
k.
The manufacturing cycle times are longer.
answer
Traditional production
question
l.
Management works with suppliers to ensure defect-free raw materials.
answer
Lean production
question
m.
Products are produced in large batches.
answer
Traditional production
question
Strength-testing one item from each batch of panels
answer
Appraisal
question
Training employees in TQM
answer
Prevention
question
xTraining suppliers in TQM
answer
Prevention
question
Identifying preferred suppliers who commit to on-time delivery of perfect quality materials
answer
Prevention
question
Avoid lost profits from lost sales due to disappointed customers
answer
External failure
question
Avoid rework and spoilage
answer
Internal failure
question
Avoid inspection of raw materials
answer
Appraisal
question
Avoid warranty costs
answer
External failure
question
a.
The time that elapses between the start of production and the product's completion is known as
.
answer
manufacturing cycle time
question
b.
is the management philosophy and strategy focused on creating value for the customer by eliminating waste.
answer
Lean thinking
question
c.
The costs incurred for every batch, regardless of the number of units in the batch, are known as
.
answer
batch-level costs
question
d.
Costs incurred to avoid poor-quality good or services are
.
.
answer
prevention costs
question
e.
Using activity-based costing information to make decisions that increase profits while satisfying customers' needs is
.
answer
activity-based management
question
f.
An acronym for the eight wastes is
.
answer
DOWNTIME
question
g.
The costs incurred for a particular product, regardless of the number of units or batches of the product produced, are known as
.
answer
product-level costs
question
h.
focuses on activities as fundamental building blocks in compiling the indirect costs of products, services, and customers.
answer
Activity-based costing
question
i.
are costs incurred when defects in poor-quality goods or services are corrected before making delivery to customers.
answer
Internal failure costs
question
j.
are incurred for every single unit of product produced.
answer
Unit-level costs
question
k.
Costs incurred when the company does not detect poor-quality goods or services until after delivery is made to customers are
.
answer
external failure costs
question
l.
are costs incurred no matter how many units, batches, or products are produced.
answer
Facility-level costs
question
m.
is a Japanese word meaning "change for the better."
answer
Kaizen
question
n.
Costs incurred to detect poor-quality goods or services are
.
.
answer
appraisal costs
question
o.
The rate of production needed to meet customer demand yet avoid overproduction is known as
.
answer
takt time
question
p.
is a storage system used to reduce the waste of transportation and movement, in which tools, materials, and equipment are stored in proximity to where they will be used most frequently.
answer
POUS
question
q.
is a management philosophy of delighting customers with superior products and services by continually setting higher goals and improving every business function
answer
TQM
question
Companies often refine their cost allocation systems to minimize the amount of cost distortion caused by the simpler cost allocation systems.
True
False
answer
True
question
Cost distortion is more likely to occur when
A.
all products require the same amount and type of processing activities.
B.
a company uses departmental overhead rates rather than a single plantwide overhead rate.
C.
a company manufactures one type of product.
D.
departments incur different types of overhead and the products or jobs use the departments to a different extent.
answer
D.
departments incur different types of overhead and the products or jobs use the departments to a different extent.
question
Traditional costing systems are generally more accurate than ABC costing.
True
False
answer
False
question
Which of the following is true?
A.
Value-added activities are also referred to as waste activities.
B.
ABC is only applicable to manufacturers.
C.
ABM refers to using activity-based cost information to make decisions.
.D.
The goal of ABM is to decrease the amount of value-added activities.
answer
C.
ABM refers to using activity-based cost information to make decisions.
question
Managers often reap benefits by using ABC data in ABM to pinpoint opportunities to cut costs.
True
False
answer
True
question
Lean companies typically crossminus−train employees to perform more than one task.
True
False
answer
True
question
Which of the following is not one of the costs of quality categories?
A.
Appraisal costs
B.
Transportation costs
C.
External failure costs
D.
Prevention costs
answer
B.
Transportation costs
question
On a Cost of Quality report, which of the following cost items should be classified as an external failure cost?
A.
Customer returns of defective products
B.
Technical support provided to suppliers
C.
Supplies used in the quality inspection program
D.
Net cost of scrap
answer
A.
Customer returns of defective products
question
When is Exam 1?
A.
Wednesday - Friday, 9/27 - 9/29
B.
Monday - Wednesday, 9/25 - 9/27
C.
Monday - Friday, 9/25 - 9/29
D.
Tuesday - Thursday, 9/26 - 9/28
answer
D.
Tuesday - Thursday, 9/26 - 9/28
question
As a result of cost distortion, some products will be overcosted while other products will be undercosted.
True
False
answer
True
question
The first step in computing and using ABC is which of the following?
A.
Allocating some MOH to each job
B.
Identifying the company's primary activities
C.
Selecting appropriate allocation bases
D.
Calculating activity cost allocation rates
answer
B.
Identifying the company's primary activities
question
The potential benefits of ABC/ABM are generally higher for companies that
A.
have low manufacturing overhead costs.
B.
are in noncompetitive markets.
C.
produce high volumes of some products and low volumes of other products.
D.
produce one product.
answer
C.
produce high volumes of some products and low volumes of other products.
question
One key element of lean production is to produce large batches.
True
False
answer
False
question
Concerning lean operations, which of the following is false?
A.
Can leave companies vulnerable to supply-chain disruptions
B.
Focus on internal and external waste
C.
Are quickly becoming the dominant business paradigm
D.
Can be found in all sectors, not just manufacturing
answer
B.
Focus on internal and external waste
question
Which of the following is an example of a cost item that should be classified as an internal failure cost?
A.
Employee training costs
B.
Inspection costs
C.
Rework costs
D.
Product return costs
answer
C.
Rework costs
question
Reporter from The Wall Street Journal
(financial/managerial/both)
Loan officer at the company's bank
(financial/managerial/both)
answer
financial
question
Board of directors
(financial/managerial/both)
answer
both
question
Internal auditor
(financial/managerial/both)
answer
both
question
SEC examiner
(financial/managerial/both)
answer
financial
question
Current stockholders
(financial/managerial/both)
answer
finncial
question
Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations. (credibility,integrity,confidentiality)
answer
credibility
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