Accounting Final 123

Front 1

Which is not a characteristic of management accounting information?

Back 1

Emphasizes the external financial statments

Front 2

What are characteristics of management accounting information?

Back 2

1. Provide detailed info about individual parts of the company.

2. Emphasizes relevance.

3. Focuses on the future.

Front 3

A management accountant who avoids conflicts of interest meets the ethical standard of:

Back 3

Integrity

Front 4

Period costs are:

Back 4

Selling and administrative expenses

Front 5

A direct cost of manufacturing a sport boat is:

Back 5

Cost of the boat engine

Front 6

This is not part of manufacturing overheads for producing a computer:

Back 6

Depreciation on delivery trucks

Front 7

The following are part of manufacturing overheads for producing a computer:

Back 7

1. Manufacturing plant property taxes.

2. Insurance on plant equipment.

3. Manufacturing plant utilities

Front 8

1. Would an advertising agency use job orderprocess or process costing? What about acell phone manufacturer?

Back 8

a. Advertising agency-job orderingcosting; Cell phone manufacturer-process costing

Front 9

1. For which of the following reasons would anowner of a law firm, want to know the total costs of a job (serving aparticular client)?

Back 9

To determine the fees to charge clients

Front 10

Which company is least likely to use a process costing system

Back 10

accounting firm

Front 11

which characteristic is the same in both job order costing systems and process costing systems?

Back 11

Types of product costs

Front 12

1. The manger of a company used the production costreport to compare budgeted costs to actual costs and then based bonuses on theresults. This is an example of using thereports to:

Back 12

Evaluate performance

Front 13

for a sound company, straight-line depreciation on the trucks is a:

Back 13

fixed cost

Front 14

1. If a company increases its selling price perunit for Product A, the new breakeven point will:

Back 14

decrease

Front 15

if a company increases its fixed costs for product B, then the contribution margin per unit will:

Back 15

remain the same

Front 16

1. A company can expect to receive which of thefollowing benefits when its uses a budgeting process?

Back 16

a. The budget provides mangers with a benchmarkagainst which to compare actual results for performance evaluationb. The budget helps motivate employees to achievesales growth and cost-reduction goalsc. The planning required to develop the budgethelps mangers foresee and avoid potential problems before they occur

d. All of the above

Front 17

which of the following is the cornerstone of the master budget?

Back 17

the sales budget

Front 18

Information technology has made it easier for managers to perform all of the following tasks except:

Back 18

Removing budgetary slack form the budget

Front 19

a company would set direct labor standards based on:

Back 19

time-and-motion studies, continuous improvement, benchmarking

Front 20

which is not one of the potential advantages of decentralization?

Back 20

increases goal congruence

Front 21

which of the following is not a goal of performance evaluation systems?

Back 21

reprimanding unit mangers

Front 22

in making short-term special decisions, what should you do?

Back 22

separate variable from fixed costs

Front 23

which of the following is relevant to kitchenware.com's decision to accept a special order at a lower sale price from a large customer in china?

Back 23

the cost of shipping the order to the customer

Front 24

which of the following costs are irrelevant to business decisions?

Back 24

sunk costs

Front 25

when making decisions, managers should consider:

Back 25

revenues that differ between alternative

Front 26

when pricing a product or service, managers must consider which of the following?

Back 26

all costs

Front 27

in deciding whether to drop its electrongics product line, smith company should consider:

Back 27

the costs it could save by dropping the product line, how dropping the electornics product line would affect sales of its other products like DVDs, the revenues it would lose form dropping the product line

Front 28

1. In deciding which product lines to emphasizewhen a production constraint exists, kitchenware.com should focus on theproduct line that has the highest:

Back 28

contribution margin per unit of the constraining factor

Front 29

when making outsourcing decisions, which of the following is true?

Back 29

the variable cost of producing the product in-house is relevant

Front 30

when deciding whether to sell as is or process a product further, mangers should ignore which of the following?

Back 30

the costs of processing the product thus far

Front 31

What is the first step of capital budgeting?

Back 31

identifying potential projects

Front 32

both projects generate positive NPV, yet the corporation only chooses the bar coding project. Why?

Back 32

The company is practicing capital rationing