act 210 exam 1, ch.1-3

lean manufacturing

is a methodology that focuses on minimizing waste within manufacturing systems while simultaneously maximizing productivity.

Predictive analytics

look at patterns in data to determine if those patterns are likely to emerge again, which allows businesses and investors to adjust where they use their resources to take advantage of possible future events.

Which of the following types of costs are not allocated to production departments? Select one: A. Selling department costs B. Manufacturing overhead costs directly identifiable with the production departments C. Manufacturing overhead costs requiring allocation to production departments D. Service department costs

A. Selling department costs

Total Manufacturing Costs for the period include: Select one: A. Total Direct Labor B. Total Materials Purchased C. Total Cost of Goods Sold D. Administrative and Selling Expenses E. All of the above

A. Total Direct Labor

Just-in-time (JIT) inventory systems are designed to reduce which of the following: Select one: A. Possibility of delayed shipments B. Costs of carrying inventory C. Threat of lost sales due to unexpected demand D. All of the above

B. Costs of carrying inventory

Accumulating cost information on a per-unit basis is useful for making management decisions in companies such as: Select one: A. Manufacturers B. Hospitals C. Insurance companies D. A, B, and C E. None of the above

D. A, B, and C

Which of the following are not included in the Work in Process Inventory? Select one: A. Direct Materials that have been put into production B. Direct Labor incurred in production C. Manufacturing Overhead allocated to units of production D. All of the above are included in Work in Process Inventory

D. All of the above are included in Work in Process Inventory

Which of the following is not a source of information used by Management Accountants? Select one: A. Upper management B. Line employees C. Financial results of the company's operations D. All of these are sources of managerial accounting information

D. All of these are sources of managerial accounting information

Outsourcing

s an agreement in which one company hires another company to be responsible for a planned or existing activity

Just-in-time (JIT) inventory system

system is a management strategy that aligns raw-material orders from suppliers directly with production schedules.

Factory Automation

the process of incorporating automation into the manufacturing process of end products.

Managerial Accounting provides information which is primarily useful for: Select one: A. Determining how much a company owes to the IRS in taxes B. Helping banks know whether to loan money to a company C. Setting a company's stock price on the stock exchanges D. Helping managers plan, manage, and make strategic decisions regarding the growth and profitability of the company

D. Helping managers plan, manage, and make strategic decisions regarding the growth and profitability of the company

Which of the following types of firms normally carry inventory? Select one: A. Manufacturing firms B. Service firms C. Merchandising firms D. All of the above E. A and C only

E. A and C only

Management Accountants provide information that is: Select one: A. Timely B. Relevant C. Useful for making decisions D. Easily accessible to management E. All of the above

E. All of the above

Using a cost accounting system to track product costs is needed for Select one: A. Managerial decision making B. Financial statements C. Setting product prices D. Both A and C E. All of the above

E. All of the above

The Schedule of Cost of Goods Manufactured includes all of the following except: Select one: A. Total Manufacturing Costs for the period B. Beginning Work in Process Inventory C. Cost of Goods Manufactured D. Manufacturing Overhead for the period E. All of these are included in the Schedule of Cost of Goods Manufactured

E. All of these are included in the Schedule of Cost of Goods Manufactured

A variable cost is one that varies both in total (with respect to the amount of items produced) and per unit. Select one: True False

False

Management Accountants are required to report financial results in accordance with legally set guidelines. Select one: True False

False

Service department costs are considered product costs. They are accumulated in the service departments, and then allocated to the production departments as overhead, where they are then applied to the manufactured goods or provided services. Select one: True False

True

Total Manufacturing costs for a period include all direct materials used, all direct labor, and all manufacturing overhead. Select one: True False

True

Managerial Accounting utilizes both financial and non-financial data of a company. Select one: True False

True

Predetermined overhead rates are calculated by dividing estimates of total factory overhead cost in the upcoming accounting period (usually a year) by an estimated usage or capacity of some unit of related activity (such as direct labor hours). Select one: True False

True

Which of the following correctly explains what should be done with any under- or over-applied overhead? Select one: A. Monthly, any significant amount of under- or over-applied overhead should be closed to Cost of Goods Sold. B. At year end, if there is a significant amount of under- or over-applied overhead, it should be allocated proportionally to Work in Process, Finished Goods, and Cost of Goods sold. C. It is not normal for a company to have under- or over-applied overhead, because overhead is allocated based on actual costs incurred. D. At year end, if there is a significant amount of under- or over-applied overhead, it should all be closed to Cost of Goods Sold. E. At the end of a project, any insignificant under- or over-applied overhead should be closed to Work in Process prior to transferring the costs to Finished Goods.

B. At year end, if there is a significant amount of under- or over-applied overhead, it should be allocated proportionally to Work in Process, Finished Goods, and Cost of Goods sold.

If production increases within a given range, fixed costs per unit will: Select one: A. Increase B. Stay constant C. Decrease D. Vary depending on the source of the fixed costs E. None of the above

C. Decrease

Which of the following would not appear on a job order cost sheet? Select one: A. Direct Labor costs incurred B. Direct Materials requisitioned for the job C. General administrative expense D. Total cost of the job E. All of the above would appear on the job order cost sheet.

C. General administrative expense

Cost of Goods Manufactured is the cost of items transferred from Work in Process Inventory to Finished Goods Inventory. Select one: True False

True