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