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Accounting Exam 1 > Chapter 14 > Flashcards

Chapter 14 Flashcards

1
Q

True or false the main purpose of managerial accounting is to provide relevant information to it’s managers

A

True

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2
Q

Match the types of accounting
Financial accounting
Managerial accounting

A

Financial accounting uses past performance using historical information

Managerial accounting uses current performance and future projections

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3
Q

Which of the following characteristics describe managerial accounting

A

Used to make planning and control decisions

Many future projects

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4
Q

Managerial accounting primarily provides information to

A

Internal users

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5
Q

Managerial reporting systems are

A

Flexible

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6
Q

True or false
The main purpose of managerial accounting is to provide general purpose financial statements

A

False

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7
Q

Managerial information:

A

Allows estimates and projections

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8
Q

Managerial accounting has the following characteristics

A

Focus is on internal users

Emphasis on projects, processes, and divisions

Includes mostly monetary and some nonmonetary information

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9
Q

The characteristics of the fraud triangle include

A

Rationalization
Pressure
Opportunity

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10
Q

Financial accounting provides information for (internal/external) _______ users, while managerial accounting provides information got (internal/external) ________ decision makers.

A

Financial- external

Managerial- internal

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11
Q

True or false
Managerial accounting provides information to internal managerial and executive employees who are in charge of a company’s business activities.

A

True

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12
Q

Consider a company that manufactures picture frames. Which of the following costs would be considered direct costd?

A

Oak wood used for frame
Glass used in frame
Wages of assembly line workers

(Anything that is tied to directly to the product)

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13
Q

(Managerial/Financial) accounting allows internal users to determine what information they need to make planning and control decisions and is not rule based.

A

Managerial

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14
Q

Direct materials costs for an automobile manufacturer would include all of the following

A

Tires
Bumpers
Steering wheels
(Not employees who work on the product)
You’re looking for direct materials only.

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15
Q

Managerial accounting information is normally provided to managers when?

A

As they request it

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16
Q

The fraud triangle shows three factors that push a person to commit fraud and includes _____ , pressure, and rationalization

A

Opportunity

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17
Q

Those who work directly on the product to convert raw materials into a finished product are known as

A

Direct labor

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18
Q

Which of the following characteristics describe managerial accounting

A

Used to make planning and control decisions

Many future projections

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19
Q

Conversion costs consist of

A

Direct labor and factory overhead

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20
Q

Which of the following are direct costs for a shoe manufacturer

A

Shoe laborers who make the shoes

Leather used in the shoes

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21
Q

Costs which are crucial parts of the finished product are called

A

Direct costs

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22
Q

The efforts of employees who work directly to convert direct materials into the finished product are referred to as

A

Direct labor

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23
Q

Which of the following are product costs for a manufacturer

A

Depreciation on factory equipment

Direct materials

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24
Q

Prime costs consist of

A

Direct labor and direct materials

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25
Q

Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers

A

Direct

Variable

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26
Q

Which of the following are indirect costs for the finishing department of a furniture manufacturer?

A

Electricity cost for the plant
Plant managers salary
Rent on the manufacturing facility

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27
Q

Direct materials cost for an automobile manufacturer would include the following

A

Steering wheel
Bumpers
Tires

28
Q

Which of the following are included in Raw materials inventory?

A

Direct materials

29
Q

Inventory which is partially complete is known as

A

Work in process

30
Q

Which of the following are period costs for a manufacturer?

A

Salary for admin staff
Rent on office building
Sales commission

31
Q

Consider a service company that provides carpet cleaning and used straight line depreciation. classify the cost of the depreciation on the carpet cleaning machines

A

Indirect

Overhead

32
Q

Inventory which is completed but not yet sold by a manufacturer is known as

A

Finished goods inventory

33
Q

The cost of materials a company purchases to use in making products are

A

Rae materials

34
Q

Partially complete units are known as

A

Work in process

35
Q

The cost of goods sold for a manufacturer is computed as

A

Beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory

36
Q

True or false
Finished goods are products which are partially complete

A

False

37
Q

List the following activities in the order in which they occur with the first activity on top

A

Materials activity
Production activity
Sales activity

38
Q

Materials activities include

A

Purchasing materials

Raw materials beginning inventory

39
Q

The primary difference between the income statement for a merchandising company and a manufacturing company is in the ___ section

A

Cost of goods sold

40
Q

Consider a service company that provides carpet cleaning and used straight line depreciation. Classify the cost of the depreciation on the carpet cleaning machines

A

Overhead
Indirect

41
Q

Activities such as using materials and labor to produce finished products are considered ______ activities

A

Production

42
Q

Activities that include finished goods are considered _____ activities

A

Sales

43
Q

Activities such as purchasing raw materials are considered ______ activities

A

Materials

44
Q

Production activities include

A

Work in process inventory beginning
Direct materials used
Direct labor used
Factory overhead used
Factory overhead costs

45
Q

Sales activities include

A

Finished goods inventory

Selling finished products

46
Q

An emphasis on the changing needs of customers is called customer ____

A

Orientation

47
Q

The following items would be included in the overhead section of the schedule of cost of goods manufactured.

A

Factory utilities
Factory insurance
Factory supplies used

48
Q

Compute Cost of goods manufactured

A

Total manufacturing costs(sum of direct materials, direct labor, and overhead) + beginning work in process inventory - ending work in process inventory

49
Q

Process of analyzing data to identify meaningful relations and trends

A

Data analytics

50
Q

Graphical depiction of data to help people interpret their meaning

A

Data visualization

51
Q

Expansion of competitive boundaries which allows customers many choices is called a

A

Global economy

52
Q

Activities such as using materials and labor to produce products are considered ______ Activities

A

Production activities

53
Q

A trend where consumers expect to be able to purchase item electronically whenever and wherever they want is known as

A

E-commerce

54
Q

Understanding the changing needs of customers is referred to as

A

Customer orientation

55
Q

Lean principles include all of the following except

Total quality management
Just in time manufacturing
Global economy

A

Global economy

56
Q

A schedule of cost of goods manufactured has the following main sections

A

Cost of goods manufactured
Direct labor
Overhead
Direct materials

57
Q

Expansion of competition which provides customers with many choices is called a ____ economy

A

Global economy

58
Q

All of the following are types of e-commerce

A

Smartphone sales activities
Online sales activities
Text messaging sales activities

59
Q

Lean practices include those which are designed to eliminate waste while still satisfying the customer. Examples of lean practices include all of the following

A

Total quality management
Just in time manufacturing
Continuous improvement

60
Q

The triple bottom line focuses on three measures including

A

Environmental
Social
Financial

61
Q

Raw materials inventory turnover formula

A

Average rate materials inventory

62
Q

A series of activities that add value to a company’s products or services is called

A

Value chain

63
Q

Total overhead cost formula

A

Indirect costs totalled

64
Q

Cost of goods manufactured formula

A

Beginning WIP inventory + total manufacturing costs - ending WIP inventory.

65
Q

Days sales in raw materials formula

A

Ending raw materials inventory/ raw materials used X365

66
Q

The sustainability accounting standards board was established to develop _____ standards for businesses sustainability activities

A

Reporting standards

67
Q

Raw materials inventory turnover formula

A

average raw materials inventory/2

Accounting Exam 1 (3 decks)

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