ACCT200- CHAPTER 10

If a company incurs $4,000 in manufacturing costs to produce 200 units, the average cost per unit is Blank______. Multiple choice question. $20 $4,000 $2,000 $200

$20

At what level is information aggregated in financial accounting? Multiple choice question. -Local on subunits of the organization -Global on the company as a whole

Global on the company as a whole

At what level is information aggregated in managerial accounting? Multiple choice question. -Local on subunits of the organization -Global on the company as a whole

Local on subunits of the organization

At what level is information aggregated in managerial accounting? Multiple choice question. Local on subunits of the organization Global on the company as a whole

Local on subunits of the organization

Identify the costs that are included in manufacturing a product. Multiple select question. Overhead Labor Materials Research and development Administrative

Overhead Labor Materials

Costs incurred before the manufacturing process begins are called Blank______ costs. Multiple choice question. prep downstream upstream midstream

upstream

Costs incurred before the manufacturing process begins are called Blank______ costs. Multiple choice question. upstream prep downstream midstream

upstream

Research and development costs are Blank______ costs. Multiple choice question. product midstream upstream downstream

upstream

The sequence of activities used to provide products is called a(n) Blank______ chain. Multiple choice question. value product flow activities service

value

The only reporting restriction for managerial accounting is the BLANK- BLANK principle.

value added

The sequence of activities used to provide products is called a(n) BLANK BLANK

value chain

The three costs recognized by GAAP that are incurred in the process of making products are BLANK, BLANK and BLANK.

Blank 1: labor Blank 2: materials Blank 3: overhead

Which of the following statements is correct? Multiple choice question. -All wages and salaries in a manufacturing company are recorded the same way. -Production wages are recorded as inventory and salaries to selling and administrative employees are expensed as incurred. -Production wages are expensed as incurred and salaries to selling and administrative employees are treated as product costs.

Production wages are recorded as inventory and salaries to selling and administrative employees are expensed as incurred.

Which of the following are added to Inventory? Multiple choice question. Production wages and selling and administrative salaries. Production wages only. Selling and administrative salaries only.

Production wages only.

The cost of raw materials is first recorded in a(n) Blank______ account. Multiple choice question. equity liability expense asset

asset

Recording a cash payment for product costs is a(n) Blank______ transaction. Multiple choice question. asset exchange claims exchange asset source asset use

asset exchange

Product costs are first recorded as Blank______. Multiple choice question. assets expenses

assets

In most cases cost per unit means Blank______ cost per unit. Multiple choice question. average actual

average

The practice of identifying the best practices used by competitors is BLANK

benchmarking

The practice of identifying the best practices used by competitors is Blank______. Multiple choice question. reengineering activity-based management total quality management benchmarking

benchmarking

Just-in-time inventory reduces inventory holding costs Blank______. Multiple choice question. but creates more waste by making products to order but reduces customer satisfaction by reducing customer customization

by making products to order

Indirect costs Blank______. Multiple choice question. -are not product costs -cannot be cost-effectively traced to products and services -are not used to produce products -should be expensed immediately on the income statement

cannot be cost-effectively traced to products and services

Characteristics of financial accounting information include Blank______. Multiple select question. relevance consistency timeliness objectivity reliability

consistency objectivity reliability

A key component of TQM is an ongoing process through which employees strive to eliminate waste, reduce response time, minimize defects and simplify processes that is known as BLANK BLANK

continuous improvement

IMA members must communicate information fairly and objectively under the standard of BLANK

credibility

Managerial accounting information is Blank______. Multiple choice question. delivered on a continuous basis reported periodically, normally at year end

delivered on a continuous basis

Labor costs that can be easily and conveniently traced to products are called BLANK labor.

direct

Raw materials that can be easily and conveniently traced to products are called BLANK raw materials.

direct

When a company records a cash payment for manufacturing costs, total assets Blank______. Multiple choice question. are decreased do not change are increased

do not change

Direct raw materials are Blank______. Multiple choice question. -any materials used to create products -the same thing as raw materials -easily and conveniently traced to products

easily and conveniently traced to products

Managerial accounting provides information used primarily by Blank______. Multiple select question. investors creditors employees executives

employees executives

Financial accounting provides information used primarily by Blank______.

employees, investors, creditors

Costs incurred before the manufacturing process begins are called Blank______ costs. Multiple choice question. prep downstream midstream upstream

upstream

The primary difference between how manufacturing and service companies handle product costs is that service companies Blank______. Multiple choice question. -expense product costs because services are consumed immediately -hold product cost in inventory for longer periods of time -use multiple inventory accounts to keep track of product costs

expense product costs because services are consumed immediately

Costs incurred in the process of making products, including direct materials, direct labor and manufacturing overhead are upstream costs. True or false

false

To meet the needs of different user groups, Blank______. Multiple choice question. -financial accounting data are more aggregated than managerial accounting data -managerial accounting data are more aggregated than financial accounting data -there is little difference between the aggregation of financial and managerial accounting data

financial accounting data are more aggregated than managerial accounting data

Raw materials are expensed when Blank______. Multiple choice question. goods are sold they are purchased

goods are sold

General operating costs and selling and administrative costs are generally expensed when Blank______. Multiple choice question. incurred the related products are sold

incurred

Costs that cannot be traced to a product or service in a cost-effective manner are called BLANK costs.

indirect

Manufacturing overhead includes Blank______. Multiple select question. rent on administrative facilities selling and administrative salaries indirect materials factory utilities depreciation on manufacturing assets indirect labor

indirect materials factory utilities depreciation on manufacturing assets indirect labor

IMA standards include Blank______. Multiple select question. integrity adherence to GAAP credibility competence confidentiality

integrity credibility competence confidentiality

Financial accounting provides information used primarily by Blank______. Multiple select question. investors employees executives creditors

investors creditors

Management accounting information gathering and reporting Blank______. Multiple choice question. -has no restrictions -is only restricted by the value-added principle -cannot include forecasts which are

is only restricted by the value-added principle

Multiple Choice Question Management accounting information gathering and reporting Blank______. Multiple choice question. -is only restricted by the value-added principle -has no restrictions -cannot include forecasts which are prohibited by GAAP

is only restricted by the value-added principle

Reduced inventory holding costs and increased customer satisfaction can occur as a result of implementing Blank______. Multiple choice question. reengineering warehousing just in time customer repurchasing

just in time

Direct labor is Blank______. Multiple choice question. -any labor that is incurred in a company that manufactures products -any labor cost used to create products -labor costs that are indirectly related to the product -labor cost that can be easily and conveniently traced to products

labor cost that can be easily and conveniently traced to products

Direct labor is Blank______. Multiple choice question. any labor that is incurred in a company that manufactures products labor costs that are indirectly related to the product labor cost that can be easily and conveniently traced to products any labor cost used to create products

labor cost that can be easily and conveniently traced to products

Indirect costs incurred to make a product, including indirect labor, indirect materials, factory utilities, rent on manufacturing facilities, and depreciation on manufacturing facilities are called Blank______. Multiple choice question. manufacturing overhead direct product costs production costs period costs

manufacturing overhead

Costs incurred in the process of making products, including direct materials, direct labor and manufacturing overhead are Blank______ costs. Multiple choice question. midstream downstream upstream

midstream

Costs incurred in the process of making products, including direct materials, direct labor and manufacturing overhead are Blank______ costs. Multiple choice question. upstream downstream midstream

midstream

When compared to financial accounting, managerial accounting uses Blank______. Multiple choice question. -less estimates and more facts -more estimates and facts -less estimates and fewer facts -more estimates and fewer facts

more estimates and fewer facts

the costs of running a business that are not directly related to producing a good or service. These costs can be fixed, such as rent, or variable, such as transport costs. They can also be semi-variable, such as utilities.

overhead

Which of the following are added to Inventory? Multiple choice question. Production wages and selling and administrative salaries. Production wages only. Selling and administrative salaries only

production wages only

Materials used to make products are usually called BLANK materials.

raw

Multiple Choice Question Materials used to make products are usually called Blank______ materials. Multiple choice question. direct building raw production

raw

Lumber, metals, paints, and chemicals that will be used to make the company's products are all part of BLANK BLANK inventory

raw material

Inventory accounts for manufacturers are Blank______. Multiple select question. raw materials finished goods work in process cost of goods sold

raw materials finished goods work in process

Financial accounting information is Blank______. Multiple choice question. delivered on a continuous basis reported periodically, normally at year end

reported periodically, normally at year end

Product costs are expensed when products are Blank______. Multiple choice question. sold produced

sold

Characteristics of managerial accounting information include Blank______. Multiple select question. timeliness objectivity consistency reliability relevance

timeliness relevance

A management practice that involves a systematic problem-solving philosophy that encourages frontline workers to achieve zero defects and an organizational commitment to achieve customer satisfaction is Blank______. Multiple choice question. activity-based management total quality management benchmarking reengineering

total quality management

Merchandising companies are often viewed as service companies rather than considered a separate business category. True or false

true

Production workers' salaries are not expensed because the cash paid to the workers is used to produce inventory, not revenue. True or False

true

Production workers' salaries are not expensed because the cash paid to the workers is used to produce inventory, not revenue. True or false

true