Multiple Choice Questions

------ include the costs of all resources used throughout the value chain.
  • product cost/ MOH
  • financial
  • Total costs
  • Job costing
Rent paid for the plant factory would be​ considered? A.manufacturing overhead.B.direct labor.C.direct materials.D.indirect labor and manufacturing overhead.
  • D.All of the above
  • D.soda pop manufacturer
  • Inventory (merchandise)
  • A.manufacturing overhead.
The potential benefits of​ ABC/ABM are generally higher for companies thatA.have low manufacturing overhead costs. B.are in noncompetitive markets.C.produce high volumes of some products and low volumes of other products. D.produce one product.
  • C.Abstain from engaging in or supporting any activity that might discredit the profession.
  • C.produce high volumes of some products and low volumes of other products.
  • B.direct​ materials, direct labor and manufacturing overhead
  • D.Tuesday​ - Thursday, ​ 9/26 -​ 9/28
Costs that can be directly traced to​ a(n) ----- are called -----
  • Financial accounting information
  • A.manufacturing overhead.
  • cost object/direct costs
  • Less likely to benefit.
10.Each container is cut from the mold once the plastic has cooled and hardened.
  • Unit-Level
  • Facility-level
  • controlling
  • financial
Due to many organizations reporting fraudulent financial​ statements, companies on certain stock exchanges are required to form an audit committee. An audit committee​ is/does all of the following​ except:A.internal audit reports to the audit committeeB.are employees of the companyC.​sub-set of the Board of DirectorsD.hire the external auditors
  • A.manufacturing overhead.
  • B.​Cross-functional teams
  • B.Focus on internal and external waste
  • B.are employees of the company
report three types of inventory on the balance sheet
  • Indirect costs/cost object
  • More likely to benefit.
  • Less likely to benefit.
  • Manufacturing companies
h.Choosing goals and the means to achieve them is the---- function of management.
  • controlling
  • managers
  • planning
  • financial
Communicate information fairly and objectively.(integrity/competence/credibility/confidentiality)
  • Credibility
  • Job costing
  • prime costs
  • Critical thinking
typically, the treasurer and the controller report directly to the-----
  • managerial
  • External failure
  • CFO
  • Batch-level
Disclose all relevant information that could reasonably be expected to influence an intended user's understanding of the reports, analyses, or recommendations.(integrity/competence/credibility/confidentiality)
  • B.Controlling
  • Credibility
  • Controlling
  • Confidentiality
When allocating MANUFACTURING OVERHEAD to a job.....A.it should be allocated based on the predetermined manufacturing overhead rate at the end of the year for all jobs.B.it should be allocated based on the indirect cost allocation rate.C.it should be allocated based on the predetermined manufacting overhead rate when the job is being completed. D.manufacturing overhead should not be allocated to any jobs and it is expensed as it is incurred.
  • B.are employees of the company
  • C.it should be allocated based on the predetermined manufacting overhead rate when the job is being completed.
  • C.Controller
  • C.Abstain from engaging in or supporting any activity that might discredit the profession.
Bookkeeping Department
  • financial
  • Financial accounting information
  • Managerial accounting
  • financial accounting
g.Large stocks of finished goods protect against lost sales if customer demand is higher than expected.
  • Traditional production
  • Inventory (merchandise)
  • Managerial accounting
  • financial accounting
Provide decision support information and recommendations that are accurate,clear, concise, and timely.
  • -Competence
  • controlling
  • Competence
  • Integrity
Johnson​ & Johnson, a personal care products​ manufacturer, converts ----- into finished products.
  • merchandising companies
  • manufacturing cycle time
  • raw materials inventory
  • financial accounting
Provide decision support information and recommendations that are accurate, clear, concise, and timely.(integrity/competence/credibility/confidentiality)
  • Confidentiality
  • Competence
  • C.Manufacturing
  • Wholesalers
b.The final operation in the production sequence​ "pulls" parts from the preceding operation.
  • Directing
  • Job costing
  • Lean production
  • Batch-level
Ethical Standards are critical for management accountants. Which one best relates to​ Integrity?A.Communicate information fairly and objectively.B.Inform all relevant parties regarding appropriate use of confidentail information.C.Abstain from engaging in or supporting any activity that might discredit the profession.D.Monitoring​ subordinates' activities to ensure compliance with confidential information.
  • A.allocating manufacturing overhead to the job.
  • C.Abstain from engaging in or supporting any activity that might discredit the profession.
  • C.Rework costs
  • B.allocated overhead all year long is less than the actual manacturing overhead at year end
This course is dealing with managerial accounting versus financial accounting. One of the biggest differences between the two isA.managers and other internal organization users will receive various reports to help them achieve their goals and​ objectives, whereas financial accounting deals with a set of financial statements that are provided to external users.B.financial accounting deals with internal reports and managerial accounting deals with making information available to third parties​ (investors, creditors,​ shareholders).C.managerial accounting is not as important as financial accounting.D.managerial accounting has strict deadlines when it provides information to managers and in financial accounting organiazation issue reports to​ investors, shareholders and creditors when it thinks it is needed
  • C.it should be allocated based on the predetermined manufacting overhead rate when the job is being completed.
  • managers and other internal organization users will receive various reports to help them achieve their goals and​ objectives, whereas financial accounting deals with a set of financial statements that are provided to external users.
  • financial accounting
  • Activity-based costing
systems report on various segments or business units of the company.(managerial/financial) accounting information
  • financial accounting
  • Facility-level
  • internal audit
  • Managerial accounting
Of the following​ skills, which are needed by​ today's management​ accountants?A.Cost managementB.Decision analysisC.Strategic thinkingD.All of the above
  • product-level costs
  • batch-level costs
  • assigned/cost objects
  • D.All of the above
Which statement is FALSE regarding Manufacturing​ Overhead?A.Examples of manufacturing overhead include costs of raw​ materials, assembly line​ workers, and other costs to produce the product.B.Examples of manufacturing overhead​ include: plant​ supervision, depreciation of plant and factory​ equipment, insurance and taxes on the​ plant, indirect materials and indirect labor.C.Manufactuirng overhead includes manufacturing costs of making the​ product, that are not direct materials and direct labor.D.Manufacturing overhead can include indirect materials and indirect labor​ (supervision, janitorial,​ engineers, etc.)
  • B.Controlling
  • B.Costs of Goods Manufactured
  • A.Examples of manufacturing overhead include costs of raw​ materials, assembly line​ workers, and other costs to produce the product.
  • D.Tuesday​ - Thursday, ​ 9/26 -​ 9/28
A law​ office, an advertising​ agency, and a hospital are all examples of
  • managerial
  • Process costing
  • service companies
  • Job costing
------ cannot be directly traced to​ a(n) ------
  • Indirect costs/cost object
  • Less likely to benefit.
  • Process costing
  • product cost/ MOH
Oil refineryJob costing/process costing
  • Process costing
  • product costs
  • service companies
  • Product costs/assets
Perform professional duties in accordance with relevant laws, regulations, and-----technical standards.
  • Integrity
  • Competence
  • Job costing
  • controlling
An assembly line worker in the factory would be​ considered? A.direct materials.B.period costs.C.direct labor.D.indirect labor and manufacturing overhead.
  • C.direct labor.
  • period cost/ null
  • D.All of the above
  • internal audit
Which statement is FALSE regarding Manufacturing​ Overhead?A.Manufactuirng overhead includes manufacturing costs of making the​ product, that are not direct materials and direct labor.B.Examples of manufacturing overhead​ include: plant​ supervision, depreciation of plant and factory​ equipment, insurance and taxes on the​ plant, indirect materials and indirect labor.C.Manufacturing overhead can include indirect materials and indirect labor​ (supervision, janitorial,​ engineers, etc.)D.Examples of manufacturing overhead include costs of raw​ materials, assembly line​ workers, and other costs to produce the product.
  • B.Cost of the automobile engines
  • D.Customer service
  • D.Examples of manufacturing overhead include costs of raw​ materials, assembly line​ workers, and other costs to produce the product.
  • C.Controller
The value chain describes the costs associated with making a product. What​ box(es) are expensed immediately when incurred on the income statement as operating​ expenses/SGA ("period​ costs")?A.Production or PurchasesB.All of themC.MarketingD.All of​ them, except production or purchases
  • B.Transportation costs
  • B.The triple bottom line focuses on three​ items: net​ income, net​ assets, and return on investment.
  • D.All of​ them, except production or purchases
  • B.​Cross-functional teams
e.Using​ activity-based costing information to make decisions that increase profits while satisfying​ customers' needs is .
  • purchase orders
  • Less likely to benefit.
  • activity-based management
  • Inventory (merchandise)
Depreciation on automated production equipment
  • Product-level
  • Service companies
  • product cost/MOH
  • Process costing
All direct laborers in the factory fill out​ a(n) ------.
  • labor time record
  • Managerial accounting
  • F.Costumer service
  • Conversion costs
Payment to consultant for advice on location for new storeA.R&DB.DesignC.Purchases D.MarketingE.DistributionF.Costumer service
  • True
  • finncial
  • Kaizen
  • A.R&D
Movie studioJob costing/process costing
  • financial
  • Service companies
  • Directing
  • Job costing
Which of the following is false​?A.Globalization has increased the necessity for more detailed and accurate cost information.B.The triple bottom line focuses on three​ items: net​ income, net​ assets, and return on investment.C.ERP systems integrate information from all company functions into a centralized data warehouse.D.Lean operations is a philosophy and business strategy of operating without waste.
  • B.The triple bottom line focuses on three​ items: net​ income, net​ assets, and return on investment.
  • takt time
  • A.Production or Purchases
  • direct costs
Avoid lost profits from lost sales due to disappointed customers
  • C.Manufacturing
  • External failure
  • financial accounting
  • Internal failure
Medical practice of six doctors and four physician assistantsJob costing/process costing
  • -Competence
  • Controlling
  • Confidentiality
  • Job costing
The accounting department will not pay​ a(n) ----- unless it agrees with the quantity of parts both ordered and received.
  • Integrity
  • Directing
  • invoice
  • financial
Janitorial services companyJob costing/process costing
  • job cost record
  • Job costing
  • controlling
  • product cost/MOH
Bookkeeping Department(financial/managerial/both)
  • managerial
  • Directing
  • financial
  • Appraisal
3.Routine maintenance is performed on the extrusion machines.
  • Traditional production
  • labor time record
  • Facility-level
  • Confidentiality
Salaries paid to quality control inspectors in the plant
  • product cost/MOH
  • Job costing
  • product cost/DL
  • Process costing
Country Furniture Company manufactures furniture at its​ Akron, Ohio, factory. Some of its costs from the past year​ include:Depreciation on sales officeDepreciation on factory equipmentFactory supervisor salarySales commissionsLubricants used in factory equipmentInsurance costs for factoryWages paid to maintenance workersFabric used to upholster furnitureFreight−in ​(on raw​ materials)Costs of delivery to customersWages paid to assembly−line workersLumber used to build productUtilities in factoryUtilities in sales officeManufacturing overhead costs for Country Furniture Company totaled
  • Factory supervisor salary+Lubricants used in factory equipment+insurance+ages paid to maintenance workers+Utilities in factory+Depreciation on factory equipment=
  • cost of goods sold
  • Competence
  • D.soda pop manufacturer
5.The company produces high volumes of some of its products and low volumes of other products.
  • Work in process inventory
  • Lean production
  • F.Costumer service
  • More likely to benefit.
Internal auditor(financial/managerial/both)
  • financial
  • both
  • Process costing
  • Job costing
Most​ for-profit organizations can be described as being in one​ (or more) of three​ categories:
  • service companies,merchandising companies, andmanufacturing companies
  • B.Transportation costs
  • Both financial and managerial accounting information
  • Process costing
Plastic bottle manufacturerJob costing/process costing
  • product cost/DL
  • Process costing
  • product cost/MOH
  • Product-level
​Kohl's Department​ Store, a clothing and home goods​ store, is primarily what type of​ company?A.RetailerB.ManufacturerC.ServiceD.Real estate
  • Confidentiality
  • C.Service
  • Credibility
  • A.Retailer
Company providing Web design services (Job costing/process costing)
  • fringe benefits
  • Job costing
  • prime costs
  • product cost/MOH
The ------manages the company on a daily basis.
  • Process costing
  • Lean production
  • both
  • CEO
Choosing goals and the means to achieve them is the----function of management.
  • finncial
  • Integrity
  • planning
  • financial
Costs of Goods Sold of a manufacturing represents the costs related to building a product that are expensed when it is sold. To determine Costs of Goods​ Sold, three formulas where used representing the three different categories of inventory. Which schedule is based on work in process​ inventory?A.Cost of Goods SoldB.Costs of Goods ManufacturedC.Income Statement D.Direct Materials Used
  • D.all of the above can be used
  • D.soda pop manufacturer
  • B.Costs of Goods Manufactured
  • B.Focus on internal and external waste
d.Suppliers make frequent deliveries of small quantities of raw materials- this is what type of production.
  • product costs
  • batch-level costs
  • controlling
  • Lean production
Repairs and maintenance on factory equipment
  • prime costs
  • product cost/ MOH
  • product cost/MOH
  • Process costing
Regional division managers(financial/managerial/both)
  • financial
  • managerial
  • Manufacturing companies
  • Unit-Level
Standard packaging materials used to package individual units of product forsale (for example, cereal boxes in which cereal is packaged)
  • product cost/ MOH
  • Job costing
  • purchase orders
  • product cost/DM
Depreciation expense on delivery trucksA.R&DB.DesignC.Purchases D.MarketingE.DistributionF.Costumer service
  • Lean production
  • Credibility
  • batch-level costs
  • E.Distribution
g.Companies must follow GAAP (or International Financial Reporting Standards, IRFS, in the case of companies headquartered in many countries outside of the United States) in their ---------systems.
  • financial accounting
  • Managerial accounting
  • Lean production
  • Inventory (merchandise)
U.S. GAAP requires companies to use only ------ for inventory reported on external financial statements.
  • product cost/DL
  • product cost/DM
  • product costs
  • Product-level
Board of directors
  • B.Focus on internal and external waste
  • service companies,merchandising companies, andmanufacturing companies
  • Both financial and managerial accounting information
  • B.direct​ materials, direct labor and manufacturing overhead
a.There is an emphasis on building in quality.
  • E.Distribution
  • Facility-level
  • Unit-level costs
  • Lean production
Which of the following documents specifies the materials needed to produce a​ job?A.Raw materials recordsB.Bill of materialsC.Receiving reportD.Production schedule
  • B.Transportation costs
  • financial accounting
  • B.Bill of materials
  • Managerial accounting
The role of the-----function is to ensure that the company's internal controls and riskmanagement policies are functioning properly.
  • internal audit
  • Confidentiality
  • credibility
  • D.direct cost.
An assembly line worker in the factory would be​ considered? A.direct materials.B.period costs.C.indirect labor and manufacturing overhead.D.direct labor.
  • D.direct labor.
  • period cost/null
  • B.Controlling
  • C.Manufacturing
---- are initially treated as ----- on the balance sheet.
  • financial accounting
  • Product costs/assets
  • labor time record
  • product costs
Purchases of merchandiseA.R&DB.DesignC.Purchases D.MarketingE.DistributionF.Costumer service
  • A.Retailer
  • Competence
  • C.Purchases
  • Credibility
Which of the following types of companies would have work in process​ inventory?A.ServiceB.MerchandisingC.ManufacturingD.All of the above
  • C.Manufacturing
  • Lean production
  • internal audit
  • Manufacturing companies
f.An acronym for the eight wastes is .
  • financial
  • Job costing
  • DOWNTIME
  • finncial
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Multiple Choice Questions
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