Acct 2002 Final Test 1

Front 1

T F Managerial accounting places less emphasis on precision and more emphasis on flexibility and relevance than financial accounting.

Back 1

true

Front 2

T F Staff departments generally have direct authority over line departments in an organization.

Back 2

False

Front 3

T F A value chain consists of the major business functions that add value to the company's products and services.

Back 3

True

Front 4

T F The Sarbanes-Oxley Act of 2002 was intended to protect the interests of those who invest in publicly traded companies by improving the reliability and accuracy of corporate financial reports and disclosures.

Back 4

True

Front 5

The phase of accounting concerned with providing information to managers for use in planning and controlling operations and in decision making is called:

Back 5

managerial accounting

Front 6

Which of the following is NOT one of the three major customer value propositions discussed in the text?

Back 6

discount pricing

Front 7

Which of the following is NOT one of the five steps in the lean thinking model discussed in the text?

Back 7

Implement an enterprise system.

Front 8

All of the following are characteristics of a pull production system:

Back 8

Manufactured parts are completed just in time to be assembled into products.
Inventories are reduced to a minimum by purchasing raw materials and producing units only as needed to meet consumer demand.
Products are completed just in time to be shipped to customers.

Front 9

The five step framework used to guide Six Sigma improvement efforts includes all of the following

Back 9

Define, measure, analyze, improve,and control

Front 10

the Institute of Management Accountants' five Standards of Ethical Conduct?

Back 10

Competence, Confidentiality, Integrity, credibility,

Front 11

Manufacturing overhead includes:

Back 11

all manufacturing costs except direct labor and direct materials.

Front 12

Materials used in the operation of a factory, such as cleaning supplies, that are not an integral part of the final product should be classified as:

Back 12

manufacturing overhead.

Front 13

All of the following are examples of product costs:

Back 13

insurance on the factory equipment.
salary of the plant manager.
rental costs of the factory facility.

Front 14

Inventoriable (i.e., product) costs that have become expenses can be found in:

Back 14

cost of goods sold.

Front 15

Which of the following is an example of a period cost?

Back 15

Advertising cost for a new product campaign.

Front 16

Within the relevant range, as the number of units produced increases:

Back 16

the variable cost per unit remains the same.
fixed costs in total remain the same.
variable costs increase in total.

Front 17

The distinction between indirect and direct costs depends on:

Back 17

whether a cost can be easily traced to the cost object under consideration.

Front 18

The potential benefit that is given up when one alternative is selected over another is called:

Back 18

An opportunity cost.

Front 19

Which of the following types of firms typically would use process costing rather than job-order costing?

Back 19

A breakfast cereal manufacturer.

Front 20

The job cost sheet:

Back 20

summarizes all costs charged to a particular job.

Front 21

What source document is used to determine the actual amount of direct materials to record on a job cost sheet?

Back 21

materials requisition form