- A) Deals primarily with people and organizations outside of the business entity.
- B) Requires only periodic reporting on a regular basis.
- C) Uses any type of useful measurement unit, including physical as well as monetary measures.
- D) Deals only with the double-entry recording system
Which of the following type of information is not essential for a manger to run a business effectively?
Product or service costing information
Data for planning and controlling of operations
Special reports and analysis to support decisions
Quote of the current price of the company’s stock
Which of the following would not be included in the cost of manufactured product?
Cost to ship products to a customer
Cost of factory machinery used in production
Plant supervisor’s salary
Which of the following is not included in the purchase cost of merchandise inventory?
Purchase returns and allowances
Depreciation expense could be:
A period cost
A product cost
A fixed cost
All of the above
Production costs appear on the income statement in the form of:
Costs of goods sold
None of the above
If there is a debit balance in the Factory payroll account at the end of the accounting period it represents.
An amount because applied payroll was greater than actual payroll
An amount because actual payroll was greater than applied payroll
Labor costs which have not yet been distributed
An amount which should be charged to cost of goods sold.
Which of the following accurately describes a difference between job orders and process costings systems.
In job order costings systems, overhead costs are treated as product costs, whereas in process costing systems, overhead costs are treated as period costs.
Job order costing systems do not need to assign costs to production, whereas process costing systems do.
In job order costing systems, costs are traced to products whereas in process costing systems, a FIFO method may be used.
Since costs are assigned to products in a job order costing system, selling costs are treated as product costs in the job order costing system whereas they are treated as period costs in process costings system.
Which of the following statements is true?
The work in Process Inventory account is the focal point of process costing.
To compute unit costs using the FIFO costing method, total costs of direct Materia, direct labor, and overhead that have been accumulated in the Work in Process Inventory account or accounts are divided
Equivalent units usually are computed for direct materials and manufacturing overhead combined.
Labor costs are accounted for differently form manufacturing overhead costs in process costing system.
Nonvalue-adding activities are:
Including in the value chain of activities
All wasteful and targeted for elimination
Not all wasteful and may not be targeted for elimination.
Which of the following would not require the use of cost behavior analysis?
Transferring production costs from one department to another
Projecting anticipated costs of a new project
Buying an existing business
Changing an existing product or service.
Which of the following statements is true regarding fixed and variable costs?
Both costs are constant when considered on a total basis?
Variable costs are constant in total, and fixed costs are constant per unit.
Both costs are constant when considered on a per unit basis
Fixed costs are constant in total, and variable costs are constant per unit.
Should contain both revenues and expenses
Contain as much information as possible
Are presented in dollars only; nondollar data should be excluded
Are synonymous with managing and organization.
Budgets identify, gather, summarize and communicate:
Financial data only
Financial and nonfinancial data
Nonfinancial data only
None of the above
After management has set short-term goals, the budgeting process typically starts with
A clearly defined timetable of events
Input only from the accounting personnel
The naming of an efficient coordinator or director
A set of procedures or instructions
Which of the following represents a basic stakeholder of an organization?
The account receivable clerk of the organization
The vice president of the organization
A line supervisor of the organization
All of the above
By balancing all stakeholders’ needs, managers are more likely to achieve their objectives in
The long term
The short term
The short term as well as the long term
All areas of the organization
Which of the following is an example of a performance measurement?
Number of customer complaints
All of these choices
Service organizations do not develop standards for
c. direct materials.
d. any service costs.
A standard costing system
Is not typically used by management for cost planning and cost control purposes
Is a system in which all costs affecting the three inventory accounts and the Cost of Goods Sold account are stated in terms of actual cost incurred
Depends on actual costs rather than planned costs
Is employed with an existing job order costing or process costing system and is not a full cost accounting system in itself.
Quantitative factors used by decision makers include all of the following except
Annual or projected revenues
An example of pricing objective is to
Have prices hat top the market
Maintain or gain market share
Minimize quality and cost
When making the decision on a product’s price the manager must consider
All products at the same time
The minimum price that will produce a profit
Only cost-based information
The product’s total variable costs
All of the following are capital investment decisions, except whether or not to
Replace old equipment
Issue stock to raise capital
Acquire another company
Add a new product line
Information captured by a management information system allows managers to do all of the following except
Determine accurate product or service costs
Provide timely feedback
Satisfy all customer inquiries
How does ERP differ from an MIS?
The ERP system informally links the different areas of management for specific purposes
There is no difference
The ERP system combines all areas of management into one centralized data warehouse
The ERP system can be used only in a service business
The overall objective of controlling the costs of quality is to eliminate:1 appraisal costs.
2 costs of nonconformance.
3 costs of conformance.
4 the costs of quality.
Service department costs are allocated so that
Budgeting purposes are fulfilled
They can be properly managed
A business can then assess the profitability of a product or service
They will have a zero balance at the end of the accounting period.
Joint costs are
Incurred prior to the separation of joint products
Incurred after separation of joint products
Incurred prior and after separation of joint products
None of the above
Executive’sofficer’s compensation is typically comprised of all of the following except:
Stock option awards
Annual base salaries
Financial performance measurement is useful for all of the following except assessment of
Return by investors
Risk by creditors
Risk by investors.