Managerial Acct Ch. 1,2,3

Non-Manufacturing Costs (Period Costs). Ex. Depreciation of salesman's car

All other costs, expensed as incurred

Inventory (merchandise)

___ for a company such as Staples includes all of the costs necessary to purchase products and get them onto the store shelves

Work in process Inventory

___ is composed of goods partially through the manufacturing process (not finished yet)

Manufacturing Companies

___ report three types of inventory on a balance sheet

Managerial Accounting

___ systems are chosen by comparing the costs versus the benefits of the system and are not restricted by GAAP or IFRS

Managerial Accounting

___ systems report on various segments or business units of the company.

Service Companies

___ typically do not have an inventory account

Planning

Choosing goals and the means to achieve them is the ___ function of management

Competence

The CFO directed that certain expenses be reclassified as assets, so that target profit could be achieved. The CFO rationalized that jobs would be saved by reaching the targeted income figures.

Integrity

Stealing from your employer is a violation of

Board of Directors

The CEO is hired by the ___

Marginal Cost

cost to produce one more unit

Prime Cost

the direct cost of a commodity in terms of the materials and labor involved in its production, excluding fixed costs

Financial Accounting

State tax agency auditor Specify Use: MA or FA

Expense

"Used up cost"

Differential Cost

A company is choosing between two alternatives. If the total cost of alternative A is 50k and the total cost of alternative B is 34K, then 16K is

Audit Committee

A subcommittee of the board of directors is called the ___

Financial

Accounting information for external users. Guided by rules, not flexible, historical, looks at company as a whole

Managerial

Accounting information for internal users. No rules, flexible, forward-looking, segmented information

Value Chain

Activities that add value to a company's product and services

Manufacturing Costs (Product Costs). Ex. Depreciation of factory equipment

All costs related to making product

Service Companies

An insurance company, a health care provider, and a bank are all examples of ___

Cost Object

Anything managers want a separate measure of costs for

Both

Board of directors Specify Use: MA or FA

Financial Accounting

Bookkeeping department Specify Use: MA or FA

Financial Accounting

CPAs audit the ___ statements of public companies.

Value Chain

Collectively all costs such as distribution, marketing, and design are part of

Financial Accounting

Companies must follow GAAP or IFRS in their ___ systems.

Marketing

Cost of a prime-time TV ad featuring HP logo Classify each 'HP' costs using six business functions in value chain:

Globalization

Creates more competition and opportunity

Financial Accounting

Current stockholders Specify Use: MA or FA

Credibility

Daniel provides an analysis of the profitability of a company-owned store. Daniel neglects to include direct fixed costs in the report. If Daniel includes those allocated fixed costs, the store will show a loss.

Integrity

David, a purchasing agent for his company, received two tickets from a supplier to the upcoming Ohio State vs. University of Michigan football game. These tickets sell for over $500.

Managers

Decision makers inside a company are the ___

Production

Depreciation of Roseville, California plant Classify each 'HP' costs using six business functions in value chain:

Distribution

Depreciation on delivery vehicles Classify each 'HP' costs using six business functions in value chain:

Planning Activities

Developing company objectives and goals

Tracking Job Costs

Direct labor, direct materials, overhead

Both

Division controller Specify Use: MA or FA

Sarbanes-Oxley Act

Enacted to restore trust in publicly traded corporations. Better oversights, management accountability, financials signed by CEO and CFO, auditor independence

True

Evaluation operation by comparing actual results to budgeted results is a part of the controlling function of management True or False

Competence

Even though Kayla's company is adopting International Financial Accounting Standards (IFRS) this year, Kayla (a management accountant) has not completed the required IFRS training.

Financial Accounting

External auditor (public accounting firm) Specify Use: MA or FA

Credibility

Failing to provide job description information to management because you fear it may be used to cut a position in your department violates

Creditors, Shareholders

Financial accounting develops reports for external parties such as ___ and ___

Controller

Financial accounting, managerial accounting, and tax reporting are the direct responsibilities of the ___

Manufacturer

Flash Co. is a ___, because it has three kinds of inventory

Raw Materials Inventory

Honda Motors converts ___ into finished products

Financial Accounting

Information on a company's past performance is provided to external parties by ___

Both

Internal Auditor Specify Use: MA or FA

False

Job cost sheets contain entries for actual direct labor, and actual manufacturing overhead costs incurred in completing a job True or False

merchandising companies

Land's End, Sears Roebuck & Co., and LL Bean are all examples of ___

Total Quality Management

Lean operations, Just-in-time Inventory

Financial Accounting

Loan officer at the company's bank Specify Use: MA or FA

Cross Functional Teams

Management accountants often work with ___

Managerial Accounting

Manager of service department Specify Use: MA or FA

Detailed segment reports about departments, products, and customers

Managerial Accounting place considerable weight on

True

Managerial Accounting places less emphasis on precision and more emphasis on flexibility and relevance than financial accounting True or False

Indirect materials, indirect labor, (depreciation and utilities, insurance related to factory)

Manufacturing Overhead

Sustainability

Meeting the needs of the present without sacrificing needs of future generations

Control Activities

Monitor, motivate, evaluate performance

Merchandising, Service, and Manufacturing

Most for-profit organizations can be described as being in one (or more) of three categories:

Shifting Economy

Moving away from manufacturing more to service

Directing Activities

Overseeing day to day business operations

Financial Accounting

Potential investors Specify Use: MA or FA

Confidentiality

Providing earnings information to your brother before it is publicly announced violates

Managerial Accounting

Regional division managers Specify Use: MA or FA

Treasurer

Raising capital and investing funds are the direct responsibilities of the ___

Financial Accounting

Reporter from WSJ Specify Use: MA or FA

Financial Accounting

SEC examiner Specify Use: MA or FA

Design

Salary of engineers who are redesigning the printer's on-off switch Classify each 'HP' costs using six business functions in value chain:

Competence, Integrity

Skipping continuing education sessions your company paid for you to attend

Confidentiality

Tara, an accountant for a smartphone manufacturer, told her friends about a new model of smartphone being released by the company in the following quarter. For competitive reasons, the company keeps its models shrouded in secrecy until release date.

Refrain from disclosing info acquired in the course of work except when authorized by management or legally

The Institute of Management Accountants Standards of Ethical Conduct contains a policy regarding confidentiality that requires that management accountants

Financial statements must be audited once every three years by the government

The Sarbanes-Oxley Act of 2002 contains provisions EXCEPT

CFO, Controller

The ___ and the ___ report to the CEO

CEO & Audit Committee

The internal audit function reports to the CFO or the ___ and the ___

COO

The company's operations are the direct responsibility of the ___

Distribution

Transportation costs to deliver laser printers to retailers such as Best Buy Classify each 'HP' costs using six business functions in value chain:

Direct Materials, Direct Labor, Manufacturing Overhead

Types of Manufacturing (Product) Costs

Cost

Use of company resources

Financial Accounting

Wall street analyst Specify Use: MA or FA

Technology

What factor has changed the way we view managerial accountants

Controlling

When managers evaluate the company's performance compared to the plan, they are performing the ___ role of management.

Financial accounting provides sufficient information for managers to effectively plan and control operations

Which is statement FALSE?

Plant Managers

Which of the following is an example of indirect labor in a factory

Breakfast Cereal Manufacturer

Which of the following types of firms typically would use process costing rather than job costing

Service

Woody Co. is a ___ company, because it has no inventory

Merchandiser

Zippy Co. is a ___, because it has a single inventory account

Wholesalers

___ buy products in build from producers, mark them up, and resell them to retailers

Competence

ailing to read the specifications of the software package before purchasing it

Job Costing

cost assigned to each job or product

Process Costing

cost assigned to the process involved in making product (paint, drinks, detergent)

Differential Cost

cost difference between two alternatives

Pre-determined overhead rates

estimated Total MOH/Estimated Total Allocation

Cost Pools

grouping of similar overhead costs

Sunk Cost

irrelvant to decision making, cost that has already been incurred

Over-Applied overhead

the amount of overhead applied to the job costs greater than actual overhead costs

Under-Applied overhead

the amount of overhead applied to the job costs is less than actual overhead costs

Product cost per unit

total product costs/units produced