Chapter 16 GCA
A budget is a managerial accounting tool used in the planning process.
TRUE
ERP systems can integrate all of a company's functions, departments, and data into a single system
TRUE
The IMA standards of ethical practice require managerial accountants to maintain their professional competence
TRUE
How is the management of a company accountable to its employees?
The management must provide a safe workplace.
Which of the following is a philosophy designed to integrate all organizational areas in order to provide customers with superior products and services, while meeting organizational goals throughout the value chain?
Total Quality Management (TQM)
________ is a philosophy of continuous improvement of products and processes
Total Quality Management (TQM)
Managerial accounting focuses on providing information for internal planning and control
True
What is Total Quality Management (TQM)?
a philosophy of supplying customers with superior products and services
Comparing actual performance to previously budgeted amounts is part of the ________
controlling function of managerial accounting
Managerial accounting includes the planning function. Which of the following items would be part of the planning function of a business's managerial accounting?
creating detailed budgets
Which of the following is a product cost?
depreciation on production equipmen
For a manufacturing company, which of the following is a period cost?
direct materials used
In which of the following ways is the management of a company accountable to its communities?
ensuring the company's environmental impact is not harmful to its community
Which of the following is a part of manufacturing overhead?
factory insurance
Which of the following will be included in manufacturing overhead costs?
indirect labor and indirect materials used
Manufacturing overhead is also referred to as ________.
indirect manufacturing costs
An Enterprise Resource Planning system (ERP) ________
integrates all worldwide functions, departments, and data of a company into a single system
Managerial accounting information is used to help managers plan and control their operations
its employees to plan and control operations
Management's accountability to its suppliers and vendors is to ________.
make timely payments and comply with contract terms
Which of the following is a period cost for a manufacturing company?
office rent
Which of the following is the primary objective of managerial accounting?
providing information that managers need to make operational decisions
Which of the following is the primary focus of financial accounting?
providing summarized information on operational results to investors and creditors
Management of a company is accountable to ________ for obeying laws and paying taxes
the government
The entire sequence of activities that add value to a company's products and services is called ________.
the value chain
Which of the following is an objective of managerial accounting?
to provide information to business managers to assist them in controlling their business
Which of the following is an example of direct labor cost in a factory?
wages of assembly line personnel
Which of the following is a product cost for a manufacturing company?
wages paid to factory janitor
Financial accounting prepares reports for internal purposes, whereas managerial accounting provides information to external stakeholders.
FALSE
Which of the following correctly describes the accounting for factory depreciation?
Factory depreciation is a product cost and is expensed when the manufactured product is sold
Which of the following correctly describes the accounting for indirect labor costs?
Indirect labor costs are product costs and are expensed when the manufactured product is sold.
Which of the following correctly describes Just-in-Time (JIT) Management?
It is a cost management approach that focuses on maintaining lean inventory levels.
Which of the following is true of Just-in-Time (JIT) Management?
It is a system in which the company produces products only after receiving an order
Which of the following statements is true of financial accounting?
It provides information to investors needed for their investment decisions.
Which of the following describes a system in which suppliers deliver materials at the time they are needed and finished units are completed when customer orders need to be filled?
Just-in-Time (JIT) Management
Which of the following statements is true of managerial accounting?
Managerial accounting information is used to help managers plan and control their operations
