Week 1

Question 1

What is managerial accounting?

Answer 1

A field of accounting that provides
economic and financial information
for managers and other internal users.

Question 3

Financial statements quarterly and annually ( Financial or managerial accounting)

Answer 3

Financial

Question 4

Internal users: officers and managers (Financial or managerial accounting)

Answer 4

managerial accounting

Question 5

external users: shareholders, creditors and regulators ( Financial or managerial accounting)

Answer 5

Financial

Question 6

General purpose ( Financial or managerial accounting)

Answer 6

Financial accounting

Question 7

Internal reports: as frequently as needed ( Financial or managerial accounting)

Answer 7

managerial accounting

Question 8

special-purporse for specific decisions ( Financial or managerial accounting)

Answer 8

Managerial accounting

Question 9

Pertains to business as a whole ( Financial or managerial accounting)

Answer 9

financial

Question 10

Highly aggregated (condensed) (Financial or managerial accounting)

Answer 10

Financial

Question 11

Limited to double-entry accounting and cost data. ( Financial or managerial accounting)

Answer 11

Financial

Question 12

Generally accepted accounting principles ( GAAP) ( Financial or managerial accounting)

Answer 12

Financial

Question 13

Pertains to subunits of the business. ( Financial or managerial accounting)

Answer 13

managerial accounting

Question 14

Extends beyond double-entry accounting to any relevant data ( Financial or managerial accounting)

Answer 14

managerial accounting

Question 15

Very detailed ( Financial or managerial accounting)

Answer 15

managerial accounting

Question 16

Standard is relevance to decisions. ( Financial or managerial accounting)

Answer 16

Managerial accounting

Question 17

No independent audits ( Financial or managerial accounting)

Answer 17

managerial accounting

Question 18

Audited by CPA (chartered professional accountant) (( Financial or managerial accounting)

Answer 18

Financial

Question 19

Lego approach

Answer 19

Bricks (concepts) and Structures (decision analyses)

Here: Tasks and Tools

Question 20

Organizational charts

Answer 20

identify the interrelationships of activities, the delegation of authority and the delegation of responsibility

Question 21

Line positions

Answer 21

directly involved in the company’s main revenue-generating operating activities

Question 22

Staff positions

Answer 22

involved in activities that support the efforts of the line employees

Question 23

Just in Time (JIT) Inventory Methods

Answer 23

Inventory system in which goods are manufactured or purchased just in time for use

Question 24

Quality/TQM

Answer 24

Increased emphasis on product quality because goods are produced only as needed

Total Quality Management (TQM) -a philosophy of zero defects; all employees participate in managing quality

Question 25

Activity-Based Costing (ABC)

Answer 25

Overhead is allocated based on each product’s use of economic resources as it undergoes various activities (number of orders or number of machine set ups)

Question 26

Theory of Constraints

Answer 26

Used to identify and manage constraints or “bottlenecks”

Helps achieve overall goals of the company, particularly profits

Question 27

Lean manufacturing: 5 basic principles

Answer 27

1. Define value
2. Identify the value stream
3. Make the value stream flow
4. Implement a pull system
5. Strive for perfection.

Question 28

Prime costs include

Answer 28

Direct material and direct labor