CGA mod 1 multple choice Flashcards
Which of the following characterizes a line position
a. it is only indirectly related to the achievement of the basic objective of an organization
b. it is supportive in that it provides service or assistance to other parts of the organization
c. it is directly related to the achievement of the basic objectives of an organization
d. it involves a direct relationship between a supervisor and his or her subordinates
c.
which of the following does NOT describe managerial accounting
a. it draws heavily upon other disciplines
b. it emphasizes the segments of an organization rather than looking at the organization as a whole
c. it is not mandatory
d. it is governed by GAAP
d.
Which of following costs should be included as part of manufacturing overhead in the production of a wooden table
a. the amount paid to the individual who stains the table
b. the commission paid to the salesperson who sells the table.
c. the cost of the glue used in the table
d. the cost of the wood used in the table
c
a monthly electricity bill computed on the basis of a flat rate plus fee for usage is an example of which of the following
a. variable cost and fixed cost
b. variable cost and direct cost
c. product cost and period cost
d. direct cost and indirect cost
a
which of the following statements describes the treatment of period costs.
a. they will never constitute part of the COGM statement but will always be part of the income statement
b. they will always be part of the COGM statement
c. they will only be incurred if the product is made in the current period
d. they will never constitute part of the COGM statremet or be part of the income statement
a.
In planning and control cycle, planning determines action, and action generates results and feedback what does feedback influence
a. reports
b. accounting systems
c. planning
d. deviations
c
Which of the following is NOT normally considered to be a component of the planning and control cycle
a. implementing plans
b. reporting to owners and lenders
c. measuring performance
d. formulating long-and short term plans
b
which of the flowing statements is true
a. indirect costs can be identified specifically with a given cost object in an economically feasible way
b. direct costs cannot be identified specifically with a given cost objective in an economically feasible way
c. managers prefer to classify costs as indirect rather direct
d. a cost may be simultaneously direct and indirect to different cost objects
d
There are major differences between managerial accounting and financial accounting. which of the following statements about the difference is correct
a. Managerial accounting places more emphasis on the past
b. managerial accounting is more concerned with verifiability
c. managerial accounting is more concerned with providing timely information
d. management accounting procedures are consistent with GAAP
c
bill is the manager of the product development division at Fiao Co. He ahs been invited to a company lunch with several colleagues. he is also expected to prepare a quarterly financial performance report on his division. the report is due in 2 days and bill estimates that there is approximately 16 -20 hours of work remaining. a colleague remarks to bill while they discuss if bill should attend the lunch, you are not one to refuse a fee lunch! you should go. bill responds by saying :in this case, I am not sure there is such a thing as a free lunch. which cost concept best applies to bill`s response.
a. sunk cost
b. opportunity cost
c. period cost
d. fixed cost
b
