Final Flashcards
Managerial Accounting is primarily focused on:
- Providing creditors info on the status of their loans
- Providing investors with usefule info for valuing securities
- providing IRS with info to determine the amount of taxes owed
- Providing managers with relevant information to help acheive organizational goals
Providing managers with relevant information to help acheive organizational goals
In order to be useful to managers, management accounting reports:
Should be prepared to meet the specific needs of decision makers
Financial accounting information is least useful in providing:
Information for internal decision makers
The 3 analysis that comprise strategic cost management include all except:
Ratio analysis
Strategic position analysis is best defined as:
An organization’s basic way of competing to sell products and services
A goal is best defined as:
a definable and measurable objective
Which of the following is not one of the 3 strategic positions that Porter views as leading to business success?
All things to all people
Product or service differentiation involves:
creating something that is perceived as unique and worth a premium price
The process of selecting strategies to acheive goals is often referred to as:
Planning
The process of making the organization into a well-ordered whole is referred to as:
Organizing
The process of ensuring the results agree with plans is referred to as:
Controlling
The act of delegating authority for implementing plans to other managers and employees can be viewed as an aspect of:
Organizing
World-class companies must continuously struggle to improve performance in the dimensions of: Price/Cost, Service, Quality, All
All of the Above
_____ are fundamental choices about the size and scope of operations and about technologies employed in delivering products or services to customers
Structural Cost Drivers
This is an organizational cost driver for a discount department store chain:
Decision to rearrange merchandise within the store
A decision to work closely with a limited number of suppliers for the purpose of ensuring that the proper materials are available at the optimal time is an example of:
Organizational Cost Driver
_______ are specific units of work performed to serve customer needs that consume costly resources.
Activity Cost Drivers
Examples of activity cost drivers include all of the following except:
Deciding how to arrange raw materials inventory within the warehouse
Ethical behavior:
Is not guided by well-defined rules and is often subjective
Ethics deal with: the propriety of a course of action, the fitness of a course of action, the moral quality of a course of action, all
All of the above
T/F: Cost-volume-profit analysis is most useful for determining costs
False
T/F: Fixed costs, variable costs and revenues are all included in profitablity analysis
True
T/F: Cost-volume-analysis is not typically used to determine the break-even point
False
T/F: Contribution margin is the difference between total revenue and total variable costs
True
T/F: One of the basic assumptions underlying the cost-volume-analysis model is that the revenue curve is curvilinear.
False
T/F: Functional income statements classify expenses based on business function and are typically found in corporate annual reports
True
T/F: A cost-volume-profit graph includes lines for total revenues, total fixed cost, total variable cost and total profit
False
T/F: If prices are assume to increase by 10%, the slope of the cost curve will increase by 10%, but there will be no changes in the cost curves
True
T/F: The break-even point for a company with multiple products cannot be determined using a unit contribution margin calculation since there are multiple products each of which has a different unit contribution margin
False
A basic assumption of the cost-volume-profit model is that:
All costs can be accuratley classified as either fixed or variable
All of the following are assumptions used in cost-volume-profit analysis, except: all costs are classified as fixed or variable, the total cost function is linear, the total revenue function is linear, all
All of the above
Which of the following inventories results in recording an expense when its asset account is reduced in the accounting system?
Finished goods inventory
Partially completed goods that are in the process of being converted into a finish product are defined as:
Work-in-process inventories
How is depreciation on the manufacturing building and equipment classified in financial reporting?
As part of the cost of the products produced
When is the cost of manufacturing equipment recognized as an expense?
When finished goods inventory is sold
Which of following costs are treated as part of the cost of product? Wages of plant security guards, insurance on the plant building and equipment, depreciation, all
All of the above
For which of the following products would job order costing be least likely to be used?
Newsprint paper manufacturing
For which of the following manufactured products would job costing be more appopriate than process costing?
Designer dresses sold to celebrities
Which of the following tasks does not pertain to job-costing?
Computing equivalent units
Which of the following results in an increase in work-in-process inventory?
Using direct manufacturing labor hours
When finished goods are sold, there is an increase in which of the following accounts?
Cost of goods sold
