Corporate Governance

Question 1

ERM Framework - What component of enterprise risk management addresses an entity’s assignment of authority & responsibility?

Answer 1

Internal Environment

Question 2

ERM Framework - What component of enterprise risk management addresses an entity’s reporting deficiencies?

Answer 2

Monitoring

Question 3

Which Internal control framework addresses an entity’s timely reporting of identified internal control deficiencies?

Answer 3

Monitoring

Question 4

Appropriate knowledge, skills, & abilities to prepare timely & effective financial reporting is applying the ideas from which principle?

Answer 4

Financial reporting competencies.

Question 5

Sarbanes-Oxley Act addresses the problems related to inadequate board oversight by requiring public companies to have an:

Answer 5

Audit Committee

Question 6

Management report on internal control include:

Answer 6

1) Conclusion about the effectiveness of the company’s internal controls
2) statement that the auditor has attested & reported on management’s evaluation of internal controls
3) Statement of management’s responsibilities for establishing & maintaining adequate internal controls.

Question 7

Control activities are most closely related to:

Answer 7

Risk responses

Question 8

The board of directors has a:

Answer 8

fiduciary responsibility to act on behalf of and in the best interest of the corporation.

Question 9

The criteria for evaluating the effectiveness of enterprise risk management are:

Answer 9

the components of the ERM framework

Question 10

A financial expert serving on the audit committee of an issuer must have experience with:

Answer 10

Internal accounting controls

Question 11

Productivity Ratios

Answer 11

Total productivity ratios (TPRS) consider all inputs simultaneously as well as the prices of the inputs.

Question 12

Pareto Diagrams

Answer 12

display the individual & cumulative frequency of quality issues, defects, or problems.

Question 13

Allocating Joint costs to joint products: Sales price less the cost to complete is defined as:

Answer 13

Net sales value at split-off

Question 14

Allocating Joint costs to joint products: Sales price less cost to complete after split-off, is assumed to be equal to:

Answer 14

Relative sales value at split-off

Question 15

Direct Labor

Answer 15

represents the cost of labor directly associated with the manufacturing of the finished product.

Question 16

Product cost

Answer 16

assigned good that were either purchased or manufactured for resale.

Question 17

A cost that would decrease if production levels were increased within the relevant range

Answer 17

Fixed costs per unit

(constant in total, but decrease per unit as production levels increase

Question 18

Focus of managerial accounting

Answer 18

needs of the organization’s internal parties(managers) & data relevant for decision making

Question 19

Activity-Based Costing

Answer 19

it can be used with either process or job costing

Question 20

Basic assumption of ABC

Answer 20

Products or services require the performance of activities, and activities consume resources

Question 21

Over/Underapplied OH

Answer 21

Overapplied OH occurs when more overhead was applied than actually occurred.
Underapplied OH occurs when less overhead was applied than was actually incurred.

Question 22

ABC system, cost reduction is accomplished by identifying & eliminating:

Answer 22

Nonvalue-adding activities

Question 23

Traditional job order cost system, the issue of indirect materials to a production department increases:

Answer 23

Factory overhead control

Question 24

Joint Costs

Answer 24

• physical measures such as weights/volume
• constant gross margin percentage net realizable value, &
• sales value at split-off

Question 25

FiFo & Weighted Average has how many steps involved?

Answer 25

Fifo = 3 Step process

Weighted Average Method = 2 Step process

Question 26

Cost driver is defined as:

Answer 26

A casual factor that increases the total cost of a cost objective.

Question 27

Cost drivers are:

Answer 27

Activities that cause costs to increase as the activity increases,