Accounting 2

Which of the following statements is true? Every firm can be identified as one type of organization: manufacturer, merchandiser or service company. Some firms operate as more than one type of organization: manufacturer, merchandiser and/or service company.

Some firms operate as more than one type of organization: manufacturer, merchandiser and/or service company.

When applied to business, __ means a company can meet today's needs without sacrificing future generations from meeting their own needs.

Sustainability

Which of the following is NOT one of the V's of big data? Validity Variety Volume Velocity

Validity

Materials are treated as _______ costs when it is not worth the cost or effort to trace them to specific products. (Enter only one word per blank.)

indirect or overhead

Direct materials and direct labor are both ______ costs.

manufacturing

Levi Strauss and Ford Motors are examples of____ firms.

manufacturing

Indirect materials and indirect labor are classified as ______.

manufacturing overhead

Indirect materials include ______.

salt and pepper

Hotels and airlines are examples of ___________ companies.

service

Providing managers with a broader set of information to meet the needs of multiple stakeholders, with the goal of ensuring the company's long-term survival in an uncertain and resource-constrained world is the goal of ________ accounting.

sustainability

True or false: Cost control is a critical concern for most organizations.

true

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

variable costs

Costs that remain constant on a per unit basis are called ___________ costs.

varible

The Sarbanes-Oxley (SOX) Act ______.

was primarily aimed at renewing investor confidence has many implications for managers

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

Budgeting Reason: Budgeting is typically done on an annual basis.

Which of the following statements are true?

Classifying a cost a product or period can impact reported profitability. The distinction between product and period costs has more to do with financial accounting than managerial accounting.

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

Controlling

Which of the following statements are true? When making decisions regarding costs, GAAP rules must be followed. Costs are treated differently in different situations. There are many different ways to categorize costs.

Costs are treated differently in different situations. There are many different ways to categorize costs.

What is the primary difference between managerial and financial accounting?

Managerial accounting provides information for internal use and financial accounting provides information to external users.

Determining tactics that management will use to achieve objectives is part of ______.

Planning

The future-oriented aspect of the management process is

Planning

Variable costs ______.

remain constant per unit and vary in total

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

ethics

True or false: Virtually all accounting and business problems have clear right or wrong answers.

false

True or false: When faced with an ethical dilemma, it is only important to identify those who may be harmed by the decision.

false

Companies with strong ethical cultures ______.

have higher productivity than those without such cultures have higher levels of customer satisfaction

If cost data will be used for decision making, it is important to consider ______.

how costs will behave or change

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 such as deciding how many employees to hire, salary schedules, and training policies are made during the ______ phase of the management process.

implementation

Decisions made during the ___________ phase are sometimes called operational decisions. (Enter only one word per blank.)

implementing

The Sarbanes Oxley Act ______.

includes rules that should help employees make ethical decisions

Wholesalers and retailers are both types of __________ companies.

Merchandising

Which of the following is NOT one of the three categories of businesses? Nonprofit organization Manufacturing firm Service company Merchandising company

Nonprofit organization

A __________ lays out plans in monetary or financial terms. (Enter only one word per blank.)

budget

Cost objects

can be products, customers, or jobs

When making a decision, ______.

cost control is a critical concern for most organizations

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

cost object

In an automobile manufacturing plant, assembly-line workers' wages are ___ costs.

direct labor

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

direct labor

Manufacturing costs can be divided into three categories:

direct materials direct labor manufacturing overhead

The components of prime costs are ______.

direct materials and direct labor

Controlling involves ______.

measuring actual results

A department store is part of the ______ companies category of business.

merchandising

There are two broad classifications of costs: manufacturing costs and ____ cost.

nonmanufacturing

The distinction between manufacturing and nonmanufacturing costs applies ______.

only to companies that make a physical product

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

opportunity, incentives, and character

Determining the key factors that are important to a company's success is a major component of the __________ function.

planning