Midterm 1

Question 1

What are the functions performed by managers

Answer 1

Planning
Directing and motivating
Controlling
Decision making

Question 2

What is Intrinsic Motivation

Answer 2

Motivation that comes from within

Question 3

Extrinsic Incentives

Answer 3

Highlight important goals to motivate employees to achieve them

Question 4

Manufacturing costs

Answer 4

Direct Materials
Direct Labour
Manufacturing overehead

Question 5

Manufacturing overhead

Answer 5

contains all cost of manufacturing except direct labour and materials

Question 6

Manufacturing overhead combined with direct labour is called what

Answer 6

conversion cost

Question 7

Non-manufacturing costs

Answer 7

Market or selling costs
Administrative cost

Question 8

Product costs

Answer 8

costs involved with making a product

Question 9

Period costs

Answer 9

all costs not included with product costs

Question 10

Work in process inventory

Answer 10

consists of units of product that are partially complete

Question 11

Finished goods inventory

Answer 11

consists of complete units of product that have yet to be sold

Question 12

Differential cost

Answer 12

differs between alternatives

Question 13

Sunk cost

Answer 13

past cost not affected by a decision

Question 14

Cost object

Answer 14

any unit of analysis for which cost data are desired

Question 15

Step-variable costs

Answer 15

cost of a resource that is obtainable only in large amounts and that increases or decreases in response to changes in activity

Question 16

Committed fixed costs

Answer 16

Investments in facilities, equipment and basic elements of operating

Question 17

High low method

Answer 17

Change in cost/Change in activity

Question 18

Contribution Margin

Answer 18

amount remaining from sales revenue after variable expenses have been deducted