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