Accounting 202
Which person or group is not an employee of the corporation?
A member of the audit committee
Which of the following is not one of the primary responsibilities of management?
Adhering to GAAP
Which of the following individual is the only individual to use financial accounting information?
Bank credit officer
The IMA issues which of the following certifications?
CMA
Which of the following certifications is issued by the IMA?
CMA
Which of the following industries would be most likely to use a job costing system?
Commercial building construction
Manufacturers follow four steps to implement a manufacturing overhead allocation system. What is the first step?
Estimate total manufacturing overhead costs for the coming year
Which of the following is the name of the regulatory body that issues the Certified Management Accountant (CMA) certification?
Institute of management accountants (IMA)
Which product costing system would be better for custom-order products?
Job costing system
Which product costing system would better account for a unique product?
Job costing system
Which of the following statements is true regarding managerial accounting information?
Managerial accounting information emphasizes relevance
Which of the following is an example of an industry that would use a process costing-rather than a job costing- system?
Pepsi
What type of company resells tangible products it purchases ready- made from suppliers
Retailer, Wholesaler, and Merchandiser
Which of the following costs is an example of a fixed cost
Salary of plant manager
A job costing system can be used by which types of companies?
Service, manufacturing, and merchandising businesses
Planning involves which of the following activities?
Setting goals and objectives for the company
which one of the following items is not one of the three primary manager responsibilities?
adjusting
The contribution margin income statement presents _______ above the contribution margin line
all variable expenses
Manufacturers follow four steps to implement a manufacturing overhead allocation system. The last step is
allocate some manufacturing overhead to each individual job
The first three steps to allocating manufacturing overhead are taken before the year begins and include all of the following except
allocating some manufacturing overhead to each individual job
How often should managerial accounting reports be prepared?
as often as necessary
When is the predetermined manufacturing overhead rate computed?
before the period starts
All fixed costs are listed ________ on a contribution margin income statement.
below the contribution margin line
Which of the following are merchandising companies
both retailers and wholesalers
Which of the following is an example of an industry that would use a process costing-rather than a job costing- system?
coca cola
Fixed costs that are the result of previous management decision that current managers have no control over in the short run are called ____fixed costs
committed
The standards in the IMA Statement of Ethical Professional Practice includes
competence, confidentiality, integrity, credibility
What position is typically responsible for general financial accounting, managerial accounting, and tax reporting?
controller
When management uses feedback to take corrective action on the budgets, which of the following management responsibilities are being fulfilled?
controlling
Which of the following is being fulfilled when management compares the budget to actual results
controlling
Assigning manufacturing overhead costs and other indirect costs is called
cost allocation
What is the primary factor that causes a "cost" called?
cost driver
When volume increases, the fixed cost per unit of activity
decreases
Overseeing the day-to-day operations of a company is an example of which of the following management functions?
directing
To resolve ethical dilemmas, the IMA suggests that management accountants should first
follow their company's established policies for reporting unethical behavior
When volume decreases, the fixed cost per unit of activity
increase
All of the following are overarching principles in the IMA Statement of Ethical Professional Practice except
integrity
The focus of management accounting is on
internal reporting
A ________ is used to accumulate all of the direct materials and direct labor used on the job, as well as the manufacturing overhead allocated to the job
job cost record
The two basic types of costing systems are
job costing and process costing
Manufacturing overhead is allocated on the basis of
machine hours, direct labor hours, and direct labor costs
________ gathers, summarizes, and reports on the financial impact of changes to business operations
managerial accounting
Which of the following types of companies has raw materials, work in process and finished goods inventory?
manufacturers
Payroll-related costs for factory employees who do no work directly on the product are considered
manufacturing overhead
American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as
merchandise inventory
Macy's (the department store chain) classifies it's clothing held for sale as
merchandise inventory
A ____ company's balance sheet reports just one inventory called "Inventory"
merchandising
For external reporting purposes, U.S. GAAP allows companies to use
only the traditional format of the income statement
Preparing budgets is an example of which of the following management functions?
planning
When management analyzes whether to move production to another country or to keep the production located where it currently is, which of the following management responsibilities is being performed?
planning
A(n) ________ is an estimated manufacturing overhead rate computed during the year.
predetermined manufacturing overhead rate
Which of these documents authorizes the purchase of specific raw material from a specific supplier?
purchase order
Before these materials are used to manufacture its cars, Toyota classifies steel, glass, and plastic as
raw materials inventory
before these materials are used to manufacture cabinets, a woodworker classifies lumber, paint, and glue as
raw materials inventory
The _________ substantiates the total of the raw materials inventory account shown on the company's balance sheet
raw materials records
The contribution margin is equal to
sales minus variable expenses
A public accounting firm that provides business consulting to a consumer is what type of company?
service
In the United States, the fastest growing type of company is
service
Which type of company makes up the largest sector of the United State economy?
service companies
A snow removal business would be classified as a
service company
A(n) ________ cost is a cost whose total amount changes in direct proportion to a change in volume.
variable
How would Chevrolet classify its partially completed vehicles?
work in process inventory
When direct materials are requisitioned, they flow directly into
work in process inventory account