Accounting 1B Chapter 14 LearnSmart

Managerial accounting systems report both monetary and nonmonetary information. Examples of nonmonetary information include the

Employees satisfaction data

Managers use an internal control system to

Ensure reliable accounting, Promote efficient operations, protect assets

The triple bottom line focuses on the three measures including:

Environmental, Financial, and Social

JIT Manufacturing

Establishing better relationships with vendors to ensure on-time delivery of quality raw materials

TQM

Evaluating business activities with a focus on improving quality

Financial accounting provides information to _______ users, while managerial accounting provides information to _______ users

External, Internal

Conversion costs consist of:

Factory overhead and direct labor

The main purpose of managerial accounting is to provide general-purpose financial statements

False

Inventory which is completed but not yet sold by a manufacturer is known as

Finished Goods Inventory

The inventory account used by manufacturing companies to record costs of completed products ready for sale is called

Finished Goods Inventory

Managerial reporting systems are

Flexible

The main difference between manufacturer's and a merchandiser's balance sheet is in the

Inventory account

Which of the following are direct costs for a shoemaker

Leather used in shoes, Shoe laborers who make the shoes

Activities such as purchasing and storing raw materials are considered ________ activities

Materials

Purchase Materials Use Materials Product Sold

Materials Activity Production Activity Sales Activity

Which of the following are the variable cots relative to number of units produced and sold

Materials used in production, Commissions based on sales

Managerial accounting information is normally provided to managers

Quickly when needed

The manufacturing company reports the following items: Work in Process Inventory, Beginning Balance: 1000 Work in Process Inventory, Ending Balance: 3000 Direct Materials: 5000 Direct Labor: 7000 Factory Overhead: 4000 Cost of Goods Manufactured=?

(1000+5000+7000+6000)=17000 19000-3000= 14000

Minor manufacturing company has ending raw materials inventory balance of $15000, raw materials used of $60000. Calculate the days' sales in raw materials inventory.

(15000/60000)x(365)= 91.25

The main focus of managerial accounting is providing

Information on specific activities

List the items below in the correct order in which they would appear in the calculation of cost of goods sold for a manufacturing company

1. Beginning Finished Goods Inventory 2. Plus 3. Cost of Goods Manufactured 4. Minus 5. Ending Finished Goods Inventory

Major manufacturing company has direct materials used of $50,000, beginning raw materials inventory of $10,000 and ending raw materials inventory of $8000. Compute the raw materials inventory turnover

50,000/[(10000+8000)/2]= 5.55

The Institute of Management Accountants' Statement of Ethical Professional Practice requires members to

Act with integrity, Be competent

The main difference between merchandising and manufacturing companies is the merchandisers _____________ (buy/produce) goods ready for sale and manufacturers __________ (buy/produce) goods

Buy, Produce

E-commerce

Company's website used to promote online sales transactions

The managerial accountant at XYZ Company told her friend that the company expects to announce a major recall in a few weeks. The friend promptly sells all her stock in XYZ. The accountant violated which IMA Statement of Ethical Professional Practice Standards?

Confidentiality, Integrity

The primary difference between the income statement for a merchandising company and a manufacturing company is in the _________ section

Cost of Goods Sold

Understanding the changing needs of customers is referred to as

Customer Orientation

Which of the following are product costs for a manufacturer

Depreciation on the factory equipment; Direct materials

The effort of employees who work directly to convert direct materials into finished product are referred to as

Direct Labor

Costs which are tangible components of the finished product are called ________ __________ costs

Direct Materials

A schedule of cost of goods manufactured has the following main sections:

Direct Materials, Direct Labor, Overhead, Computation of Goods Manufactured

Which of the following are included in Raw Materials Inventory

Direct Materials, Indirect Materials

Customer Orientation

Emphasis on customers as the most important part of the business

Managerial accounting has which of the following characteristics

Emphasis on projects, processes, and subdivisions; Internal Users; Monetary and nonmonetary information.

Consider a company that manufactures picture frames. Which of the following costs would be consider direct costs

Oakwood Used for Frame, Glass Used for Frame, Assembly Line Worker Wage

All of the following are types of e-commerce:

Online sales activities, Text messaging sales activities, Smartphone sales activities

Activities such as using materials and labor to produce finished products are considered __________ activities

Production

Production activities include:

Production workers assembling products, incurring overhead costs, using materials

The main purpose of managerial accounting is

Providing useful information to internal managers

List the activities in the order they occur for a cookie retailer

Purchase Raw Materials Baking Sales Service

The characteristics of the fraud triangle include:

Rationalization; Opportunity; Financial Pressure

Activities such as selling and storing finished products are considered ________ activities

Sales

Which of the following are period costs for a manufacturer?

Sales commissions, Rent on the office building, Wages for administrative

Lean practices include those which are designed to eliminate waste while still satisfying the customer. Examples of lean practices include all of the following:

Total Quality Management; Continuous Improvement; Just-In-Time Management

Factory Overhead are all manufacturing costs except direct materials and direct labor

True

Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines.

Variable, Direct

Consider the production department of a manufacturer of laptops. Classify the cost of the processor chips

Variable, Direct, Product

Partially Complete Units are known as ______________ ____________ __________ inventory

Work in Process