Test 1 (acct) first packet

Question 1

What is managerial accounting

Answer 1

Providing information to managers for use within the organization, giving info to interal users

Question 2

Financial and managerial accounting, the 7 key differences

Answer 2

1. users
2. Time focus
3. verifiability
   4.precision vs timeliness
   5.subject
   6.Rules
4. requirements

Question 3

Work of management, what three jobs does a manager have?

Answer 3

planning, controlling and decision making

Question 4

What does planning consist of?

Answer 4

Establishing goals, specify how goals will be achieved, and developing budgets

Question 5

What does planning do?

Answer 5

it can have budgets to predict what will happen in the future, and can budget for utility costs future revenue, etc.

Question 6

What does controlling consist of?

Answer 6

Function gathers feedback to ensure the plans are being followed

Question 7

What is an essential part of the control function of work of management?

Answer 7

feedback in the form of performance reports that compare actual results with the budget

Question 8

What else can the control function do?

Answer 8

It can ensure people work towards a goal.
Observes that people actions/ behaviors follows a plan

Question 9

What three questions are asked when decision-making?

Answer 9

What should we be selling, who should we be serving, how should we execute?

Question 10

What is decision making?

Answer 10

involves making a selection among competing alternatives

Question 11

What is a certified management accountant

Answer 11

a management accountant who has the necessary qualifications and who passes a rigorous professional exams

Question 12

What is the primary purpose of the ACCT 2 course?

Answer 12

To teach measurement skills that managers use to support, planning, control, and decision-making activities.

Question 13

What are 3 manufacturing costs

Answer 13

Manufacturing costs, direct labor, and manufacturing overhead

Question 14

materials that become an integral part of the finished product and can be easily traced to the finished product

Answer 14

Direct materials

Question 15

Labor cost that can be easily traced to the finished product/ directly work on the making of the product

Answer 15

Direct labor

Question 16

All manufacturing costs except direct materials and direct labor

Answer 16

Manufacturing overhead

Question 17

What type of costs are selling costs and administrative costs?

Answer 17

non-manufacturing costs

Question 18

manufacturing costs are also known as

Answer 18

product costs

Question 19

non-manufacturing costs are also called

Answer 19

period costs

Question 20

raw materials, work in process, finished goods are all what type of accounts on the balance sheet

Answer 20

inventory accounts

Question 21

materials that are used to make a product

Answer 21

raw materials

Question 22

units of product that are partially complete and will require further work before they are ready for sale to a customer

Answer 22

Work in process (WIP)

Question 23

units of product that have been completed but have not yet been sold to customers

Answer 23

finished goods

Question 24

a cost that varies in total in direct proportion to changes in the level of activity.

Answer 24

Variable cost

Question 25

a variable cost is constant per unit of

Answer 25

activity

Question 26

a cost that remains constant, in total, regardless of changes in the level of activity

Answer 26

fixed cost

Question 27

A ______ is a constant in total for changes in activity within the relevant range

Answer 27

fixed cost

Question 28

a____ is inversely related to activity when expressed on a per unit basis

Answer 28

fixed cost

Question 29

a difference in costs between two alternatives under consideration

Answer 29

differential costs

Question 30

the potential benefit that is given up when one alternative is selected over another

Answer 30

opportunity cost

Question 31

a cost that has already been incurred and that cannot be changed by any decision made now or in the future

Answer 31

sunk cost

Question 32

All costs of production are treated as product costs, regardless of whether they are variable or fixed

Answer 32

absorption costing

Question 33

what are the two type of absorption costing systems?

Answer 33

job-order costing and process costing

Question 34

used where different type of products are produced

Answer 34

job-order costing

Question 35

used where single,homogeneous product is produced

Answer 35

process costing

Question 36

only variable production costs are included in product costs

Answer 36

variable costing