Chapter 1

Question 1

lected by the stockholders, the owners of Smart Touch Learning, and is responsible for developing the strategic goals of the corporation

Answer 1

Board of Directors

Question 2

is ultimately responsible for developing a plan to meet the company’s short- and long-term strategies as well as overseeing the implementation of the plans

Answer 2

CEO

Question 3

staff that are directly involved in providing goods or services to customers.

Answer 3

Line positions

Question 4

support the line positions. Vice president—chief financial officer (CFO), controller, treasurer, and payroll processing manager are examples.

Answer 4

Staff Positions

Question 5

means choosing goals and deciding how to achieve them. requires managers to look to the future and establish goals for the business.

Answer 5

Planning

Question 6

this type of planning involves developing long-term strategies to achieve a company’s 3-10 year goals

Answer 6

Strategic

Question 7

This type of planning focuses on short-term actions dealing with a company’s day-to-day operations. are most often one year in length, but may also span only a week, a month, or a quarter.

Answer 7

Operational

Question 8

involves running the day-to-day operations of a business.

Answer 8

Directing

Question 9

the process of monitoring day-to-day operations and keeping the company on track.

Answer 9

Controlling

Question 10

accountant certification that have demonstrated specialized knowledge in budgeting and forecasting, planning and analysis, risk management and internal controls, and performance management.

Answer 10

Certified Managerial Accountants (CMA’s)

Question 11

Accountant certification which distinguishes accountants as professionals with advanced knowledge in finance, operations, strategy, and management.

Answer 11

Chartered Global Management Accountant

Question 12

Type of company that sells time, skills, knolwedge

Answer 12

Service

Question 13

This type of company sells products they purchse from distributors

Answer 13

Merchandising

Question 14

These companies use labor, supplies, facilities and equipment to convert raw materials to goods

Answer 14

manufacturing

Question 15

These cost can easily and cost effectively be traced back to cost objects

Answer 15

Direct

Question 16

Costs theat cannot be easily or cost effectively tied back to a cost object

Answer 16

Inderect

Question 17

Three types of inventory used by manufacturing companies to track cost

Answer 17

Raw Materials inventory
Work in process Inventory
Finisthed good inventory

Question 18

Three types of manufacuting cost

Answer 18

Direct materials
Direct labor
manufactuing overhead

Question 19

are the manufacturer overhead cost of raw materials that are difficult or not cost-effective to trace directly to the product.

Answer 19

Indirect materials

Question 20

is the manufacturer overhead cost that includes the cost of wages and salaries in the factory for persons not directly producing the product.

Answer 20

Indirect labor

Question 21

cost that combine the direct costs: direct materials and direct labor.

Answer 21

prime

Question 22

cost that combine direct labor with manufacturing overhead. These are the costs to convert the direct materials into the finished product.

Answer 22

conversion

Question 23

cost that include the costs of purchasing or making a product. This cost is considered an asset on the balance sheet until sold, when it is expensed as cost of goods sold.

Answer 23

product cost

Question 24

costs are selling and administrative expenses and other expenses such as taxes and interest.

Answer 24

Period cost

Question 25

3 steps to calculate cost of goods manufactured

Answer 25

1. Calculate direct materials used
2. Calculate total manufacturing cost (direct materials and labor, and OH manufacturing)
3. Calculate cost of goods manufactured by adding the total manufacturing cost to the beginning work in process costs, then subtract the ending work in process inventory.

Question 26

How to calculate cost of goods sold in a manufacturing operation

Answer 26

It is the cost of finished goods inventory that has been sold. Cost of goods sold = (Beginning inventory plus cost of goods manufactured) - ending inventory

Question 27

Costs of the goods the finished the production process in a given accounting period

Answer 27

Cost of goods manufactured

Question 28

how to calculate unit product cost

Answer 28

cost of goods manufactured/total units produced

Question 29

Software that can help companies integrate all of it’s companies functions, departments, and data into one system.

Answer 29

Enterprise resource planning (ERP) system

Question 30

is a philosophy of continuous improvement of products and processes. Continuous improvement leads to fewer defects and higher customer satisfaction.

Answer 30

Total Quality Management

Question 31

refers to profits, people, and the planet—the economic, social, and environmental impact of doing business.

Answer 31

triple bottom line

Question 32

how to calculate unit cost per service provided

Answer 32

Total operating cost/total number of services provided