chapter 1 from old book

Question 1

does managerial accounting apply to all businesses? which are they?

Answer 1

yes

service, merchandising, and manufacturing

Question 2

does does managerial accounting apply to all business organizations? which are they?

Answer 2

yes

proprietorships, partnerships, and corporations.

Not-for-profit entities as well as profit-oriented enterprises need managerial accounting.

Question 3

do you need managerial accounting to advance in your career like get promoted and shid?

Answer 3

ye boy

all levels at a business organization have knowledge in managerial accounting

Question 4

wh¡at are organizational charts used for?

Answer 4

the show the delegation of power in an organization

Question 5

what are line positions?

give examples

Answer 5

positons that are contribute directly to the company’s primary revenue-generating operating activities

vice president of operations

vice president of marketing

plant managers

supervisors

production personnel

Question 6

what are staff positions?

give examples

Answer 6

involved in activities that support the efforts of the line employees

finance

legal

human resources

Question 7

why was the Sarbanes-Oxley Act of 2002 (SOX) created?

Answer 7

In response to corporate scandals in 2000 and 2001, the U.S. Congress enacted legislation to help prevent lapses in internal control

Question 8

what does SOX clarify?

Answer 8

SOX clarifies top management’s responsibility for the company’s financial statements.

In addition, top managers must certify that the company maintains an adequate system of internal control to safeguard the company’s assets and ensure accurate financial reports

Question 9

what is included in manufacturing costs

Answer 9

direct materials

direct labor

manufacturing overhead

Question 10

what are indirect materials and indirect labor classified as?

Answer 10

manufacturing overhead

Question 11

manufacturing overhead

Answer 11

costs that are indirectly associated with the manufacture of the finished product

Question 12

what does manufacturing overhead include?

Answer 12

indirect materials

indirect labor

depreciation on factory buildings and machines

insurance

taxes

maintenance on factory facilities

Question 13

why is direct labor dropping?

Answer 13

because of automation

Question 14

product costs (manufacturing costs)

Answer 14

direct materials

direct labor

manufacturing overhead

costs that are integral in the fabrication of a product

Question 15

how are product costs recorded?

Answer 15

as inventory when incurred

recorded as expenses when product has been sold

Question 16

what are period costs (non manufacturing costs)?

Answer 16

costs that are matched with the revenue of a specific time period rather than included as part of the cost of a salable product

selling and administrative expenses

Question 17

what is the total cost of work in process?

Answer 17

the cost of manufacturing this period and

the cost of the beginning work in process

Question 18

ending work in process inventory

Answer 18

units that are only partially completed by the end of the period

Question 19

cost of goods manufactured schedule

Answer 19

reports cost elements used in calculating cost of goods manufactured

Question 20

what are the possible inventory accounts for the balance sheet of a manufacturer?

Answer 20

raw materials inventory

work in process inventory

finished goods inventory

Question 21

raw materials inventory

Answer 21

shows the cost of raw materials on hand

Question 22

work in process inventory

Answer 22

shows the cost applicable to units that have started into production but are only partially completed

Question 23

finished goods inventory

Answer 23

shows the costs of completed goods on hand

Question 24

how are the inventory accounts of a manufacturer listen in the balance sheet?

Answer 24

in order of liquidity

finished goods

work in process

raw materials

Question 25

what is the main difference between service companies and manufacturing companies?

Answer 25

service companies have their products consumed immediately

Question 26

what does the value chain refer to?

Answer 26

it refers to all activities associated with providing a product or service

Question 27

what does a manufacturer's value chain include?

Answer 27

include research and development product design acquisition of raw materials production sales and marketing delivery customer relations, and subsequent service

Question 28

has computerization and automation increased the value chain's effectiveness?

Answer 28

yeee boyyy

Question 29

enterprise resource planning (ERP) software systems

Answer 29

provide a comprehensive, centralized, integrated source of information companies can it use to manage all major business processes, from purchasing to manufacturing to human resources ERP systems enable a two-way flow of information between a company and its major suppliers, customers, and business partners

Question 30

why can ERP replace as many as 200 individuals in large companies?

Answer 30

an ERP system can eliminate the need for individual software packages for personnel, inventory management, receivables, and payroll

Question 31

computer-integrated manufacturing (CIM)

Answer 31

many companies can now manufacture products that are untouched by human hands An example is the use of robotic equipment in the steel and automobile industries

Question 32

just-in-time (JIT) inventory method

Answer 32

goods are manufactured or purchased just in time for sale

Question 33

total quality management (TQM) systems

Answer 33

reduce defects in finished products to hopefully achieve the zero defect level provide information on nonfinancial measures these include customer satisfaction, number of service calls, and time to generate reports

Question 34

can overhead costs be directly traced to individual products?

Answer 34

nah boyyy

Question 35

how can you determine each product's cost with overhead?

Answer 35

by allocating overhead to various products to obtain more accurate product costs, companies now use activity-based costing (ABC)

Question 36

activity-based costing (ABC)

Answer 36

companies allocate overhead based on each product’s use of activities in making the product For example, companies can keep track of their cost of setting up machines for each batch of a production process Then companies can allocate part of the total set-up cost to a particular product based on the number of set-ups that product required

Question 37

theory of constraints

Answer 37

specific approach used to identify and manage constraints in order to achieve the company’s goals

Question 38

The balanced scorecard

Answer 38

performance-measurement approach uses both financial and nonfinancial measures to evaluate all aspects of a company’s operations in an integrated fash- ion

Question 39

how are the performance measures in the balance scorecard linked?

Answer 39

The performance measures are linked in a cause-and-effect fashion to ensure that they all tie to the company’s overall objectives

Question 40

Outsourcing

Answer 40

hiring an outside supplier to provide elements of a product rather than producing them internally

Question 41

are office supplies cost manufacturing overhead or period costs?

Answer 41

period costs

Question 42

are rent and insurance manufacturing overhead or period costs?

Answer 42

manufacturing overhead

Question 43

is depreciation on office equipment manufacturing overhead or period costs?

Answer 43

period costs

Question 44

is depreciation on manufacturing building manufacturing overhead or period costs?

Answer 44

manufacturing overhead

Question 45

are period costs included in the total manufacturing costs?

Answer 45

nah boyyy

Question 46

in the accounting cycle of both the merchandising and manufacturing companies, where does it differ?

Answer 46

in the work sheets in the closing entries the rest remains the same

Question 47

how are manufacturing companies' spreadsheets different?

Answer 47

it needs two additional columns for the cost of goods manufactured schedule we insert debit and credit columns for this schedule before the income statement columns

Question 48

how are manufacturing companies' closing entries different?

Answer 48

Manufacturing companies use a Manufacturing Summary account it closes all accounts that appear in the cost of goods manufactured schedule The balance of the Manufacturing Summary account is the Cost of Goods Manufactured for the period Manufacturing Summary is then closed to Income Summary

Question 49

The group of officials elected by the stockholders of a corporation to formulate operating policies, select officers, and otherwise manage the company

Answer 49

board of directors

Question 50

Corporate officer who has overall responsibility for managing the business and delegates responsibilities to other corporate officers

Answer 50

CEO

Question 51

Corporate officer who is responsible for all of the accounting and finance issues of the company

Answer 51

CFO