ACCT 202 - LearnSmart Chapter 1

Fixed costs __________

Become progressively smaller per unit as the level of activity increases Remain constant in total

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

Budgeting (Typically done on an annual basis)

Identifying a problem and taking corrective action is part of the ______ process

Control

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

Control

Manufacturing costs include _________

Direct materials, manufacturing overhead, and direct labor

A(n) ________ cost does not change in total and a(n) _________ cost does not change per unit.

Fixed and Variable

When faced with an ethical dilemma

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

Decisions made during the ____________ phase are sometimes called operational decisions

Implementation

Manufacturing overhead costs include ____________

Indirect materials, factory supervisors' salaries, and factory depreciation

Apple and Harley Davidson are examples of _______ firms

Manufacturing

When classifying costs, ______ costs relate to making a product and ________ costs relate to delivering and selling a product

Manufacturing and nonmanufacturing

A department store is part of the _______ companies category of business

Merchandising

The Sarbanes-Oxley (SOX) Act focuses on three factors that affect the accounting reporting environment:

Opportunity, incentive, and character

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

Which of the following are most likely fixed costs?

Rent, administrative salaries, and property taxes

When comparing financial and managerial accounting, which of the following apply to managerial accounting?

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

Decision making __________

Requires up-to-date information Uses feedback from other managerial processes

Hotels and airlines are examples of _______ companies

Service

Product costs "attach" to units of product as they are purchased for resale or produced

Tru

GAAP requires all manufacturing costs be treated as product costs

True

The U.S. economy is moving more towards the service industry

True

Costs that remain constant on a per unit bases are called ______ costs

Variable

Which type of cost changes in total, in direct proportion to changes in activity level?

Variable

Cost objects include ___________

customers, anything for which cost data is desired, and activities

Materials that become an important component of the finished product whose cost can be easily and conveniently traced to the finished product are ________ materials

direct

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 are ________ costs

direct and indirect

Labor costs that can be easily and conveniently traced to specific products are _______ costs

direct labor

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

ethics

Salaries of managers and maintenance personnel are examples of ______ labor costs

indirect

Direct materials and direct labor are both _______ costs

manufacturing

Costs incurred to get the final product to the customer are known as ________ marketing or selling expenses

marketing

Nonprofit organizations _________

must make decisions that use managerial accounting information

Any item a manager wants to know the cost of is called a(n) ___________

object cost

The difference between ________ costs and _______ costs determines how and when the cost will be matched up against revenue on the income statement

period and inventoriable

A relevant cost _________

pertains to the future, differs between alternatives

Direct materials, direct labor, and manufacturing overhead are all _______ costs

product

Indirect materials include ________

salt and pepper

A cost that has already been incurred is called a(n) ______ cost

sunk

Differential cost is _________

the difference in cost between two alternatives

Period costs are expensed in the period in which _________

they occur