Chapter 1

Select all that apply Which of the following statements are true? Costs are treated differently in different situations. There are many different ways to categorize costs. When making decisions regarding costs, GAAP rules must be followed.

-Costs are treated differently in different situations. -There are many different ways to categorize costs.

Select all that apply The Sarbanes-Oxley (SOX) Act ______. was primarily aimed at renewing investor confidence is focused on the managerial accounting system puts more responsibility on accountants and less on managers has many implications for managers

-has many implications for managers -was primarily aimed at renewing investor confidence

When comparing financial and managerial accounting, which of the following apply to managerial accounting? Multiple select question.

Emphasizes the future Reports are prepared as needed Reports at the decision making level

Which of the following statements is true? - Financial accounting reports are prepared as needed. -It is important that managerial accounting reports be objective and reliable. -Managerial accounting reports provide information for the company as a whole. -Managers need more detailed information than financial reports can capture.

Managers need more detailed information than financial reports can capture.

Which of the following statements is true? -Every firm can be identified as one type of organization: manufacturer, merchandiser or service company. -Some firms operate as more than one type of organization: manufacturer, merchandiser and/or service company.

Some firms operate as more than one type of organization: manufacturer, merchandiser and/or service company.

In an attempt to reduce the opportunities for error and fraud, SOX places additional responsibilities on ______.

all managers board of directors external auditors

The process of discovering and communicating meaningful patterns and insights from data to find more intelligent ways of operating a business is known as

analytics

A cost is treated as a direct cost when is it ______. -not worth the effort to trace it to a cost object -both possible and reasonable to trace it to a cost object -a material used in production of the product -a labor cost

both possible and reasonable to trace it to a cost object

Which of the following is not an activity that managers perform on a regular, routine basis?

budgeting

Which of the following people would be more interested in managerial accounting data than in financial accounting data?

business owners and employees

Managers keep track of how they are doing and determine if adjustments are needed during _________ the phase.

controlling

Direct labor and manufacturing overhead are referred to as _____ costs.

conversation

When making a decision, ______. cost control is a critical concern for most organizations managers should only consider costs most of the information managers need is not based on cost data

cost control is a critical concern for most organizations

A cost that can be easily traced to a specific cost object is a(n) ____ cost, whereas costs that cannot be traced or are not worth the effort to trace are ____ costs.

direct ; indirect

The components of prime costs are ______. direct materials and direct labor direct labor and manufacturing overhead direct materials and manufacturing overhead

direct material and direct labor

The standards of conduct for judging right from wrong is referred to as _______.

ethics

True or false: Virtually all accounting and business problems have clear right or wrong answers.

false

True or false: When faced with an ethical dilemma, it is only important to identify those who may be harmed by the decision.

false

True or false: Monitoring metrics that are important to various areas of operations is part of implementing the plan.

false ; it is part of control

If cost data will be used for decision making, it is important to consider ______. what costs are under the decision maker's direct control whether or not the rules of GAAP are being followed how costs will behave or change

how costs will behave or change

When faced with an ethical dilemma ______. identify the parties that will be affected by the situation choose the alternative that is most legal and lawful identify and evaluate the alternative courses of action

identify the parties that will be affected by the situation identify and evaluate the alternative courses of action

Decisions made during the _______ phase are sometimes called operational decisions

implementing

Decisions such as deciding how many employees to hire, salary schedules, and training policies are made during the ______ phase of the management process.

implementing

Hiring workers, dealing with suppliers and serving customers are all part of __

implementing

Which of the following is NOT one of the three common types of analytics? Informative Prescriptive Predictive Descriptive

informative

Which type of firm converts materials into finished products?

manufacturing

When classifying costs, ____ costs relate to making a product and _____ costs relate to delivering and selling a product.

manufacturing ; non-manufacturing

controlling involves

measuring actual results

There are two broad classifications of costs: manufacturing costs and costs.

non-manufacturing

Which of the following is NOT one of the three categories of businesses? Nonprofit organization Service company Manufacturing firm Merchandising company

nonprofit organization

The Sarbanes-Oxley (SOX) Act focuses on three factors that affect the accounting reporting environment: _____, _____, and ____.

opportunity incentives character

Determining tactics that management will use to achieve objectives is part of ______.

planning

Determining the key factors that are important to a company's success is a major component of the ______ function

planning

The first step in _____ is to establish goals or objectives and tactics to achieve them

planning

The future-oriented aspect of the management process is ______.

planning

Which of the following is NOT a component of the triple bottom line? profit planning planet people

planning

The continuous, ongoing cycle of management functions include ______.

planning, implementing, and controlling

Direct materials and direct labor together are referred to as _____ costs.

prime

Managers must conduct a review of the company's internal control system and issue a report of their effectiveness. This was enacted as part of SOX in an attempt to ______.

reduce the opportuity for error and fraud

Hotels and airlines are examples of ____ companies.

service

When applied to business, _____ means a company can meet today's needs without sacrificing future generations from meeting their own needs.

sustainability

True or false: Cost control is a critical concern for most organizations.

true

Costs that remain constant on a per unit basis are called costs.

variable

Which type of cost changes in total, in direct proportion to changes in activity level? Opportunity Variable Differential Fixed

variable

Select all that apply Variable costs ______. vary in total vary per unit remain constant in total remain constant per unit

vary in total remain constant per unit