Acct 101

a company's calculated predetermined overhead rate is $90 per direct labor hour. If a job requires 4 hrs of direct labor

$360 is assigned to the job to cover indirect costs

which of the following statements are true: 1. most public companies now issue CSR reports 2. most managers today are driven primarily by economic results 3. the triple bottom line is a component of sustainability accounting 4. the sole focus of most business strategies is achieving final results

1. 2. 4.

which of the following statements are true 1. the distinction between product and period costs have more to do with financial accounting than managerial accounting 2. all costs in merchandising company are considered to be period costs 3. classifying a cost as product or period can impact reported profitability 4. inventorial costs are expensed in the period in which they incurred.

1. & 2.

which of the following statements are true 1. product costs include all costs involved in making and selling a product 2. product costs "attach" to units of product as they are purchsed for resale or produced 3. GAAP requires all manufacturing costs be treated as product costs 4. Product costs are always expensed in the same period in which the related products are produced

2 & 3

the SOX act increased the max jail sentence for fraudulent reporting to __ years

20

when a comparing financial and managerial accounting, which of the following apply to managerial accounting

a) reports are prepared as needed b) emphasizes the future c) reports at the decision making level

companies with strong ethical cultures

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

what of the following may be credited in the journal entry to record the purchase of materials

accounts payable

the work in process account accumulates ___

actual direct materials, actual direct labor and applied overhead costs

on the job cost sheet and work in process accounts, the ____ manufacturing overhead is recorded

applied

when is the predetermined overhead rate calculated

before the period begins

a cost is treated as a direct cost when it is

both possible and reasonable to trace it to a cost object

cost objects

can be products, customers or jobs

the cost of goods _____ is the sum of all the amounts transferred from work in process to finished goods during a period

completed

a journal entry that debits finished goods inventory and credits work in process records the

completion of a job

job-order costing would most likely be used in a

construction company

identifying a problem and taking corrective action is part of the ___ process

control

when calculating a predetermined overhead rate, the ideal allocation base should be a

cost driver

all managerial functions involve

decision making

major inputs such as lumber and fixtures that can be easily traced to a specific job are called ___ ____

direct material

manufacturing cost include

direct material direct labor MOH

when materials are requisitioned into production ____

direct materials are recorded on the job cost sheet direct materials are recorded in work in process

costs are transferred from raw materials inventory to

either work in process or manufacturing overhead

a predetermined overhead rate is calculated by dividing the ___ total manufacturing overhead by the ___ total cost driver

estimate estimate

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

ethics

ideally an allocation base should ___

explain or influence the amount of overhead incurred

in an attempt to reduce the opportunities for error and fraud, SOX places additional responsibilities on

external auditors all managers board of directors

examples of indirect labor costs include

factory security guards factory supervisors restaurant managers

monitoring metrics that are important to various area of operations is a part of the implementing the plan

false

preparing a budget is part of the controlling process

false

intended users of ___ accounting include investors and regulators; business owners and employees are included in the intended user of ____

financial, managerial

when a job is completed, its costs are transferred into

finished goods

a journal entry debits cost of goods sold and crediting finished goods inventory is made when

goods are sold

decisions made during the ____ phase are sometimes called operational decisions

implementation

a cost is fixed when it does not change ___

in total

The sabanes oxley act

includes rules that should help employees make ethical decisions

materials are treated as ____ costs when it is not worth the cost of effort to trace them to specific products

indirect

A(n) _____ cost will not influence a decision

irrelevant

managerial accounting information ____

is important for both profit and nonprofit organizations

a journal entry that debits work in process and manufacturing overhead and credits raw material inventory records the ___

issuance of materials

which of the following is an example of an indirect labor cost

janitor wages or supervisor RECALL ADMIN WAGES IS NOT A MOH (it is a nonmanufacturing costa

manufacturing costs can be divided into three categories: direct materials, direct ____, and ______ ________

labor, manufactoring overhead

actual manufacturing overhead consists of all

manufacturing costs other than direct labor and materials indirect costs

factory costs such as cleaning supplies, taxes, insurance and janitor wages are classified as ____

manufacturing overhead

a job cost sheet contains ___ the job

material MOH labor costs

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 ____

non manufacturing

which of the following is NOT one of the three categories of business

nonprofit organization

the SOX act focuses on three factors that affect the accounting reporting environment

opportunity, incentives, character

non manufacturing costs incurred during a period are treated as

period expenses

determining the key factors that are important to a company's success is a major component of the ___ function

planning

all material that will be issued in production are recorded in the ___ ___ inventory accout

raw material

material requisition forms are used to

record the cost of raw materials in the acc syst control the flow of material from inventory to production

fixed costs

remain constant in total become progressively smaller per unit as the level of activity increases

what type of cost is irrelevant and should be disregarded when making decisions

sunk

which of the following would not be part of direct labor cost

supervisor salaries

when applied to business, _____ mean a company can meet today's needs sacrificing future generations from meeting their own needs

sustainability

click the answer you think is correct 1. the US econ is moving towards service industry 2. over 50% of our nations gross domestic product comes from manufacturing activities 3. the merchandising sector of the US econ is larger than either manufacturing or service

the US econ is moving towards service industry

a journal entry that debits work in process inventory and credits manufacturing overhead is recording

the application off manufacturing overhead costs

differential cost is

the difference in cost between two alternatives

period costs are expensed in the period in which

they occur

A direct labor ___ ___ is a document used to record how long workers spend on each job and task

time ticket

which of the following would not be classified as manufacturing overhead

tires used to make vehicles

costs that remains constant on a per unit basis are called ___ costs

variable

which account is credited in the journal entry to record labor costs

wages payable

costs are transferred out of finished goods inventory

when goods are sold

costs of partially completed units are accounted for in

work in process