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200 Cards in this Set
- Front
- Back
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which of the following management responsibilities often involves the use of budgets? -planning -directing -controlling |
planning |
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which of the following corporate positions is responsible for raising capital and investing funds? -controller -treasurer -internal audit -chief operating officer |
treasurer |
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managerial accounting differs from financial accounting in that managerial accounting -is used primarily by external decision makers -is required by generally accepted accounting principals (GAAP) -tends to report on the company as a whole rather than segments of the company -emphasizes data relevance over data objectivity |
emphasizes data relevance over data objectivity
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of the following skills, which are needed by todays management accountants? -knowledge of both financial and managerial accounting -knowledge of how a business functions -oral and written communication skills -all of the above |
all of the above |
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which of the following organizations is the professional association for managerial accountants? -AICPA -IMA -IFRS -FASB |
IMA
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which of the following professional standards requires management accountants to mitigate conflicts of interest? -competence -confidentiality -integrity -credibility |
integrity |
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which of the following professional standards requires management accountants to communicate information fairly and objectively? -competence -confidentiality -integrity -credibility |
credibility |
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which of the following requires the company's CEO and CFO to assume responsibility for the company's financial statements and disclosures? -Sarbanes-Oxley Act of 2002(SOX) -International Financial reporting language(XBRL) -Lean operations |
Sarbanes-Oxley Act of 2002 (SOX) |
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T/F Lean operations is a philosophy and business strategy with out water |
True |
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T/F globalization has increased the necessity for more detailed and accurate cost information |
True |
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T/F TQM is a standardized coding system used to tag financial and business data so that it can be read by computer programs |
False |
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T/F ERP systems integrate information from all company functions into a centralized data warehouse |
True |
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the triple bottom line focuses on: -profit -planet -people -all of the above |
all of the above |
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Planning, Directing, or Controlling? Management conducts variance analysis by comparing budget to actual. Responsibility: |
Controlling |
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Planning, Directing, or Controlling? Management uses information on product costs to determine sales prices. Responsibility: |
Directing |
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Planning, Directing, or Controlling? Management decides to increase sales growth by 10% next year. Responsibility: |
Planning |
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Planning, Directing, or Controlling? To lower product costs, management moves production to mexico. Responsibility: |
Controlling and Directing |
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Planning, Directing, or Controlling? Management reviews hourly sales reports to determine the level of staffing needed to service customers. Responsibility: |
Directing |
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Managerial or Financial Accounting? Main characteristic of data is that it must be reliable and objective |
Financial |
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Managerial or Financial Accounting? Reports are prepared as needed |
Managerial |
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Managerial or Financial Accounting? Not governed by legal requirements |
Managerial |
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Managerial or Financial Accounting? Primary users are external (creditors and investors) |
Financial |
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Managerial or Financial Accounting? Focused on the future |
Managerial |
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Managerial or Financial Accounting? Reporting is based mainly on the company as a whole |
Financial |
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Managerial or Financial Accounting? Reports are usually prepared quarterly and annually |
Financial |
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Managerial or Financial Accounting? Information is verified by external auditors |
Financial |
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Managerial or Financial Accounting? Focused on the past |
Financial |
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Managerial or Financial Accounting? Main characteristic of data is that it must be relevant |
Managerial |
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Managerial or Financial Accounting? Reports tend to be prepared for the parts of the organization rather than the whole organization |
Managerial |
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Managerial or Financial Accounting? Primary users are internal (company manager) |
Managerial |
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Managerial or Financial Accounting? Governed by GAAP and IFRS |
Financial |
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Treasurer, Controller, or Internal Auditing Department? Invest company funds |
Treasurer |
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Treasurer, Controller, or Internal Auditing Department? Report to the audit committee of the board of directors and to a senior executive such as the CFO or the CEO |
IAD |
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Treasurer, Controller, or Internal Auditing Department? Prepares company tax returns |
Controller |
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Treasurer, Controller, or Internal Auditing Department? Performing cash counts at branch offices |
Controller |
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Treasurer, Controller, or Internal Auditing Department? Preparing journal entries for month end closing |
Controller |
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Treasurer, Controller, or Internal Auditing Department? Issue company stock |
Treasurer |
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Treasurer, Controller, or Internal Auditing Department? that the company's internal controls are functioning properly |
IAD |
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Treasurer, Controller, or Internal Auditing Department? Create an analysis about whether to lease or buy a delivery truck |
Controller |
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Treasurer, Controller, or Internal Auditing Department? Calculate the cost of a product |
Controller |
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Treasurer, Controller, or Internal Auditing Department? Issue company bonds |
Treasurer |
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Treasurer, Controller, or Internal Auditing Department? Check to make sure that company risk management procedures are being followed |
IAD |
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Treasurer, Controller, or Internal Auditing Department? Work with various departments in preparing operating budgets for the upcoming year |
Controller |
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Treasurer, Controller, or Internal Auditing Department? Oversee accounts payable activities |
Controller |
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What is the treasurers responsibilities? |
raising capital and investing funds |
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What are the controllers responsibilities? |
Financial accounting, managerial accounting, and tax reporting |
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Who does the internal audit function report to? |
CFO, CEO, and the audit committee |
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Who is the CEO hired by? |
The Board of Directors |
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Whose responsibilities are the company's operations? |
The COO |
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Who do management accountants often work with? |
Cross functional teams |
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Who do the CFO and the COO report to? |
The CEO |
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What is the subcommittee of the board of directors? |
Audit Committee |
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Do more accountants work in organizations or CPA firms? |
Organizations |
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What is the certification offered by the Institute of Management Accountants called? |
Certified Management Accountant (CMA) |
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What does the CMA focus on? |
Managerial accounting, economics, and finance topics |
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What is the monthly professional magazine published by the Institute of Management Accountants called? |
Strategic Finance |
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__________ is a broad holistic report that describes all material elements of value creation, not just the financial elements |
Integrated Report |
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________ is the management process of overseeing the company's day to day operations |
Directing |
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The _________ manages the company on a daily basis |
CEO |
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The __________ was enacted to restore trust in publicly traded corporations, their management, their financial statements, and their auditors |
Sarbanes-Oxley Act of 2002 |
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Firms acquire the ___________ certification to demonstrate their commitment to quality |
ISO 9001:2008 |
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The three pillars of sustainability are: |
Economic, environmental, and social |
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The ________________ focus on people, profit and planet |
Triple bottom line |
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_________ is the management process of setting goals and objectives for the company and determining how to achieve them |
Planning |
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The role of ____________ function is to ensure that the company's internal controls and risk management policies are functioning properly |
Internal audit |
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______ serves the information needs of people in accounting as well as people in marketing and in the warehouse |
ERP |
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___________ is a language that utilizes a standard coding system companies use to tag each piece of financial an business information in a format that can be quickly and efficiently accessed over the internet |
XBRL |
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___________ is both a philosophy and a business strategy of operating with out waste |
Lean thinking |
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Typically, the treasurer and the controller report directly to the ______ |
CFO |
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_______________ is the time between buying raw materials and selling the finished products |
Throughput time |
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__________ is the management process evaluating the results of business operations against the plan and making adjustments to keep the company pressing towards its goals |
Controlling |
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__________ is the ability to meet the needs of the present with out compromising the ability of future generations to meet their own needs |
Sustainability |
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Which of the following types of companies would carry raw materials, work in process, and finished goods inventory? -Service -Merchandising -Manufacturing -All of the above |
Manufacturing |
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Which of the following is not an activity in the value chain? -Design -Administration -Marketing -Customer Service |
Administration |
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A cost that can be traced to a cost object is known as an: -direct cost -indirect cost -period cost -inventoriable product cost |
Direct cost |
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Period costs are often referred to as -selling, general, and administrative expenses -operating expenses -both selling, general, and administrative expenses and operating expenses |
Both
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What do prime costs consist of? |
direct materials and direct labor |
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Which of the following is not apart of manufacturing overhead? -indirect materials, such as lubricants -indirect labor such as forklift operators wages -period costs, such as depreciation on office computers |
Period costs, such as depreciation on office computers |
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Which of the following types of companies will always have the cost of goods sold account on their income statement? -service and merchandising companies -merchandising and manufacturing companies -service and manufacturing companies -service, merchandising, and manufacturing companies |
Merchandising and manufacturing companies |
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Which of the following is a calculated amount rather than a general ledger account? -COGS -Finished goods inventory -Cost of goods manufactured -Sales revenue |
Cost of goods manufactured |
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T/F Sunk costs are generally relevant decisions |
False |
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T/F The difference in cost between two alternatives is known as differential cost |
True |
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T/F Uncontrollable costs are costs over which the company has little or no control in the short run |
True |
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T/F Sunk costs are costs that have already been incurred |
True |
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T/F Fixed costs stay constant in a total over a wide range of activity levels |
True |
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T/F Direct material are considered to be variable costs |
True |
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T/F The average cost per unit is valid for predicting total cost at many different output levels |
False |
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T/F Manufacturing overhead is a mixture of fixed and variable costs |
True |
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Direct or Indirect? wages of checkout clerks |
indirect |
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Direct or Indirect? wages for workers in the produce department |
direct |
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Direct or Indirect? depreciation on refrigerated produce display cases |
direct |
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Direct or Indirect? cost of weekly advertisements in local newspaper |
indirect |
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Direct or Indirect? Cost of bananas, lettuce, and other produce |
direct |
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Direct or Indirect? baggies and twist ties available for shoppers in the produce department |
direct |
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Direct or Indirect? monthly lease payment for grocery store retail location |
indirect |
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Direct or Indirect? cost of scales hanging in produce department |
direct |
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Inventoriable product costs or period cost? Cost of leasing the retail locations |
Period costs |
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Inventoriable product costs or period cost? Cost of managers and sales associates salaries |
Period costs |
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Inventoriable product costs or period cost? Cost of merchandise purchase for resale |
Inventoriable product costs |
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Inventoriable product costs or period cost? Cost of designing and operating the company's website |
Period cost |
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Inventoriable product costs or period cost? cost of shipping merchandise to the store |
Inventoriable product costs |
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Inventoriable product costs or period cost? cost of providing free shipping to customers who buy product online |
period costs |
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Inventoriable product costs or period cost? cost of utilities used in running the retail locations |
period costs |
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Inventoriable product costs or period cost? cost of import duties paid on merchandise purchased from overseas suppliers |
Inventoriable product costs |
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Inventoriable product costs or period cost? depreciation on store shelving and shopping carts |
period costs |
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____________ typically do not have an inventory account |
service companies |
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Honda Motors converts ____ ______ __________ into finished products |
raw materials inventory |
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An insurance company, a health care provider, and a bank are all examples of ______ ______ |
service companies |
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_______________ buy products in bulk from producers, marks them up, and sell to retailers |
Wholesalers |
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__________ _________ report three types of inventory on the balance sheet |
Manufacturing companies |
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_____________ for a company such as Staples includes all of the costs necessary to purchase products and get them onto the store shelves |
inventory(merchandise) |
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Most for profit organizations can be described as being in one (or more) of the three categories: |
Manufacturing companies Merchandising companies Service companies |
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_____ __ ______ ________ is composed of goods partially through the manufacturing process (not finished yet) |
work in process inventory |
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Land's End, Sears, and L.L. Bean are all examples of ______________ _____________. |
Merchandising companies |
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Marketing, Design, Production, distribution, customer service, research and development? Cost of a prime-time TV ad featuring the new HP logo |
Marketing |
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Marketing, Design, Production, distribution, customer service, research and development? Salary of engineers who are designing the printers on-off switch |
Design |
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Marketing, Design, Production, distribution, customer service, research and development? Depreciation on Roseville, CA, plant |
Production |
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Marketing, Design, Production, distribution, customer service, research and development? Deprecation on delivery vehicles |
Distribution |
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Marketing, Design, Production, distribution, customer service, research and development? Transportation costs to deliver laser printers to retailers such as best buy |
Distribution |
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Marketing, Design, Production, distribution, customer service, research and development? Costs of a customer support center website |
Customer Service |
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Marketing, Design, Production, distribution, customer service, research and development? Plant managers salary |
Production |
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Marketing, Design, Production, distribution, customer service, research and development? purchase of plastic used in printer casing |
Production |
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Marketing, Design, Production, distribution, customer service, research and development? Depreciation on research lab |
research and development |
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Indirect/Direct Depreciation of the building |
indirect |
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Indirect/Direct Cost of costume jewelry on the mannequins in the Juniors Department |
Direct |
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Indirect/Direct Cost of juniors clothing |
direct |
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Indirect/Direct Electricity of the building |
indirect |
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Indirect/Direct Cost of hangers use to display the clothing in the store |
indirect |
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_________ cannot be directly traced to an __________ |
indirect costs, cost object |
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__________________ include the costs of all resources used in the value chain |
total costs |
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GAAP requires companies to use only _______ _______ _______ for inventory reported on external financial statements |
inventoriable product costs |
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Company paid __________ may include health insurance, retirement plan contributions, payroll taxes, and paid vacations |
fringe benefits |
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when manufacturing companies sell their finish products, the costs of those finished products are removed from inventory and expensed as _____ ___ _____ _____. |
Cost of goods sold |
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_________ _______ are the costs of transforming direct materials into finished goods |
Conversion costs |
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______ _____ include R&D, marketing, distribution, and customer service costs |
period costs |
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direct materials plis direct labor equals ____ ____ |
prime costs |
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Inventoriable product costs or period costs? Cost of TV ads promoting environmental awareness |
period costs |
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Inventoriable product costs or period costs? purchase of lumber to be cut into boards |
inventoriable product costs |
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Inventoriable product costs or period costs? Salaries scientists studying ways to speed forest growth |
period costs |
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Product-MOH, Product-DM, Product-DL, Period? cost of milk purchased from local dairy farmers |
Product DM |
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Product-MOH, Product-DM, Product-DL, Period? Depreciation on marketing department's computers |
period |
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Product-MOH, Product-DM, Product-DL, Period? property tax on dairy processing plant |
product MOH |
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Product-MOH, Product-DM, Product-DL, Period? Company president's annual bonus |
period |
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Product-MOH, Product-DM, Product-DL, Period? plastic gallon containers in which milk is packaged |
product dm |
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Product-MOH, Product-DM, Product-DL, Period? wages and salaries paid to machine operators at the dairy processing plant |
product dl |
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Cost of goods sold equation: |
beginning inventory Plus: purchases import duties freight in Cost of goods available for sale Less: Ending inventory Cost of goods sold |
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Income statement equation: |
sales revenues less: cost of goods sold gross profit less: operating expenses operating income |
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calculation for direct materials used: |
beginning raw materials inventory Plus: Freight in purchases of direct materials import duties materials available for use Less: ending raw materials inventory Direct materials used |
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relevant information always pertains to the _____ and ______ between alternatives |
future, differs |
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costs that differ between alternatives are called _______ ________ |
differential costs |
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in the long run, most costs are _________ _________, meaning management is able to influence or change the amount of the costs |
controllable costs |
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______ _____ are the costs that have already been incurred |
sunk costs |
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a _______ _____ is the cost of making one more unit |
marginal cost |
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gasoline is one of many _______ ________in the cost of making one more unit |
variable costs |
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a products __________ and __________ not the products________ should be used to forecast total costs at different production volumes |
fixed costs, variable costs, average costs |
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within the relevant, __________ do not change in total with changes in production volume |
fixed costs |
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the __________ per unit declines as a production facility produces more units |
average costs |
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Fixed or variable? costs of coffee used at a starbucks store |
variable |
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Fixed or variable? hourly wages paid to sales clerks at best buy |
variable |
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Fixed or variable? monthly flower costs for a florist |
variable |
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Fixed or variable? monthly rent for a nail salon |
fixed |
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Fixed or variable? Sales commission at a car dealership |
Variable |
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Fixed or variable? monthly insurance costs for the home office of a company |
fixed |
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Fixed or variable? monthly depreciation of equipment for a customer service office |
fixed |
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Fixed or variable? cost of fabric used at a clothing manufacturer |
variable |
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Fixed or variable? monthly cost of french fries at macdons |
variable |
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Fixed or variable? depreciation on the exercise equipment at the ymca |
fixed |
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Relevant or irrelevant? cost of insurance on a new vehicle when evaluating purchase of new vehicle |
relevant |
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Relevant or irrelevant? cost of roof repair made on rental property last year when evaluating sale of rental property |
irrelevant |
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Relevant or irrelevant? accumulated depreciation on old equipment being evaluated for replacement |
irelevent |
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Relevant or irrelevant? cost of previous years insurance policy on old equipment being evaluated for replacement |
irrelevent |
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how do total variable costs behave? -they decrease as production decreases -they remain the same throughout production levels within the relevant range -they decrease as production increases -they increase as production decreases |
they decrease as production decreases |
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which of the following describes the way in which total fixed costs behave? -they will decrease as production increases -they will decrease as production decreases -they will remain the same throughout production levels within the relevant range -they will increase as production decreases |
they will remain the same throughout production levels within the relevant range |
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How do fixed costs per unit behave? -they remain the same throughout production levels within the relevant range -they decrease as production decreases -they increase as production decreases -they increase as production increases |
-they increase as production increases |
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variable costs: -are fixed per unit and cary in total ad production levels change -are fixed in total as production levels change -decrease per unit as production volume increases -vary per unit of out put as production levels change |
are fixed per unit and cary in total ad production levels change |
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London Plastics sells a product for 15 per unit. The product requires $4 per unit in variable costs to produce it. The company plans on selling 12,000 units of this product. If the monthly fixed costs are $84,000, the total sales revenue will be |
$180,000 |
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A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, the fixed costs in total will: -double -remain the same -be cut in half |
remain the same |
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A company produces toy airplanes at a variable costs of $23 per toy. if 7,000 toys are produced at a total variable cost of $161,000 the total variable cost at 4,500 toys will be |
$103,500 |
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Kramer manufacturing produces blenders. its total fixed costs are $30,000. its variable costs are $55 per blender. as production of blender increases, fixed costs will: -stay the same per unit -decrease as production increase -decrease per unit as production increases -increase as production decreases |
decrease per unit as production increases |
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a company total costs are calculated by |
adding total fixed costs to variable costs |
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What is the total cost divided by volume? |
Average cost |
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What is the difference in cost between two alternative courses of action? |
Differential costs |
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What is the combination of direct labor and manufacturing over head costs? |
conversion costs |
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What is the cost of producing one more unit? |
Marginal costs |
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What are the costs than can be traced to the cost object? |
direct costs |
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Job costing system or process costing system? custom home builder |
job |
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Job costing system or process costing system? paint manufacturer |
process |
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Job costing system or process costing system? carpet manufacturer |
process |
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Job costing system or process costing system? jumbo jet manfacturer |
job |
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What is the bill from a supplier? |
invoice |
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What is the list of all the raw materials needed to manufacture a job? |
bill of materials |
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What is the system for assigning costs to a specific unit or to a small batch of products or services that pass through production steps as a distinct identifiable job? |
job costing |
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What is a written or electronic document authorizing the purchase of specific raw materials from a specific supplier? |
purchase order |
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What is the system for assigning costs to large numbers of identical units that usually proceed in a continuous fashion throughout a series of uniform production steps or processes? |
process costing |
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What is a written or electronic document that requests specific materials be transferred from the raw materials inventory storeroom to the production floor? |
materials requisition |
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what is the written or electronic document listing the quantity and the of raw materials, direct labor, and an incoming shipment? |
receiving report |
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What is the primary factor that causes a cost? |
cost driver |
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What is the written or electronic document that lists the direct materials, direct labor, and manufacturing overhead costs assigned to each individual job? |
job cost record |
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what is the written or electronic document that identifies the employee, the amount of time spent on a particular job, and the direct labor cost charged to a job? |
labor time report |
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the order of the cost flow |
raw materials inventory work in process inventory finished good inventory cost of goods sold |
