Introduction to Managerial Accounting

Question 1

(ABC) A costing system for situations where overhead is high and/or a variety of products are produced; costs are traced to activities and then activities are allocated to production

Answer 1

activity based costing

Question 2

Comprehensive database software that tracks an almost endless array of business and accounting data

Answer 2

ERP Enterprise Resource Packages

Question 3

Costs that attach to a product; the summation of direct materials, direct labor, and factory overhead

Answer 3

product cost

Question 4

A cost not attributable to the acquisition or manufacture of inventory; expensed as incurred

Answer 4

period cost

Question 5

Gross wages paid to those who physically and directly work on the goods being produced

Answer 5

direct labor

Question 6

The costs of all materials that are an integral part of a finished product and that have a physical presence that is readily traced to that finished product

Answer 6

direct material

Question 7

All costs of manufacturing other than direct materials and direct labor (also called factory overhead)

Answer 7

manufactering overhead

Question 8

A costing approach whereby actual labor and material is tracked for each job or product

Answer 8

job costing method

Question 9

A product costing method particularly well suited to situations where production occurs in a continuous process; costs are pooled and assigned to aggregate output

Answer 9

process costing methods

Question 10

The components that will be used in manufacturing units that are not yet started – also known as direct materials

Answer 10

raw materials

Question 11

Goods that are in production but not yet complete; an accumulation of monies spent on direct material, direct labor, and applied manufacturing overhead

Answer 11

work in process

Question 12

Finished goods represent the cost of completed products awaiting sale to a customer

Answer 12

finished goods

Question 13

Benchmarks against which actual productive activity is compared

Answer 13

standards

Question 14

Efficiency is improved by seeking out and eliminating constraints within the organization

Answer 14

TOC theory of constraints

Question 15

A process for continuous improvement by focusing on customer service and systematic problem solving via teams made up of front-line employees

Answer 15

TQM total quality management