ACCT 311 CH1,2,4 (EXAM 1)

The stockholders of a company are:

A. the owners

Which of the following represents the components of the income statement for a service business?

B. Service Revenue - Operating Expenses = operating income

When a representative of an organization gives money to another business official in order to gain favor and/or manipulate a business decision, this is known as ________.

B. bribery

An inventory system that organizations use to increase efficiency and decrease waste is ________.

B. just-in-time manufacturing

Which of the following statements is true regarding average fixed costs?

C. Average fixed costs per unit fall as the level of activity rises

A quality control program that depends on multiple team members for removing waste and diminishing defects within products is ________.

C. Lean Six Sigma

What is the law that protects investors from fraudulent financial accounting activity?

C. SOX

Which of the following is not an objective used in the balanced scorecard approach?

C. Vendor

Which of the following terms means the ability to work in cross-functional teams in order to complete a task?

C. collaboration

The Certified Management Accountant (CMA) certification:

C. includes a two-part exam, education requirements, and a work experience requirement

In the cost equation Y = a + bx, Y represents which of the following?

C. total costs

Which of the following is not true regarding continuous improvement?

D. It can be applied only to improve processes and products but not services and practices.

Which of the following statements is incorrect?

D. Reports produced using management accounting must follow GAAP.

Which of the following are prime costs?

D. direct labor and direct materials

Conversion costs include all of the following except:

D. direct materials purchased

A scatter graph is used to test the assumption that the relationship between cost and activity level is ________.

D. linear

The managers of an organization are responsible for performing several broad functions. They are ________.

D. planning, controlling, and evaluating

Which of the following would not be classified as manufacturing overhead?

C. direct labor

External users of accounting information would include ________.

C. investors

Which of the following is the primary source of revenue for a service business?

C. providing intangible goods and services

What year was the Sarbanes-Oxley Act enacted?

D. 2002

The law that specifically prohibits payments to foreign officials in order to attain business is known as ________.

A. FCPA

Which of the following is false regarding strategic planning?

A. It is the sole responsibility of supervisors

Which of the following represents the components of the income statement for a manufacturing business?

A. Sales Revenue - Cost of Goods Sold = gross profit

Which of the following represents the components of the income statement for a merchandising business?

A. Sales Revenue - Cost of Goods Sold = gross profit

The controller of a corporation:

B. reports to the CFO and is in charge of the accounting side of the business

Management accountants help the management of an organization in their planning function through ________.

B. strategic planning

Fixed costs are expenses that ________.

D. remain constant as activity changes

Which of the following is not considered a product cost?

D. selling expense

Management accounting:

A. emphasizes special-purpose information

Managerial accounting produces information:

B. that is often focused on the future

Internal users of accounting information would not include ________.

C. creditors

Which of the following terms means knowing how a business is run and how it is influenced by external forces, and knowing and understanding the overall industry?

A. commercial awareness

Which of the following is a primary aspect of the evaluating function within an organization?

A. comparing actual results against expected results for products, departments, divisions, or the company as a whole

Variable costs are expenses that ________.

A. remain constant on a per-unit basis but change in total based on activity level

Which of the following methods of cost estimation relies on only two data points?

A. the high-low method

Which of the following is the primary source of revenue for a manufacturing business?

A. the production of products from raw materials

Total costs for ABC Distributing are $250,000 when the activity level is 10,000 units. If variable costs are $5 per unit, what are their fixed costs?

B. $200,000

A company's attempts to utilize sustainable business practices with regard to its employees, the environment, and society are known as ________.

B. corporate social responsibility

During the control function, the measurements taken of the performance must be accurate enough to see ________.

B. deviations and variances

Which of the following is the primary source of revenue for a merchandising business?

B. the purchase and resale of finished products

The Certified Financial Analyst (CFA) certification:

C. consists of three separate exams that must be taken in succession

Which of the following is not a step in the outline for examining ethical issues?

D. Confirm decision with FASB.

The high-low method and least-squares regression are used by managers to ________.

D. estimate costs

A process that is often linked to Six Sigma and is designed toward continuous improvement by eliminating waste is ________.

D. kaizen