SB Prologue and Ch. 1Assignment

The following information is for S&P Enterprises for the month of July: Total product cost for the month of July was ______.

$171,000

A company purchased a 12 month insurance policy on October 1 for $1,200. On the December 31 annual financial statements, ______.

$300 is reported as a expense and $900 is reported as an asset

Given: Sales of $360,000, Gross Margin of $140,000, Contribution Margin of $110,000, and Total Selling & Administrative Exp. of $60,000, net income using the traditional income statement format equals ______.

$80,000

Which of the following are most likely fixed costs?

Administrative salaries Factory rent Factory insurance

Large collections of information that are gathered from inside or outside a company to provide opportunities for ongoing reporting and analysis is referred to as _____ _____.

Big Data

The following information is for S&P Enterprises for the month of September: Total product cost for the month of September was $_____.

Blank 1: 195,000 or 195000

How individual costs react to changes in activity level is referred to as cost _____.

Blank 1: behavior or behaviour

Sales revenue minus variable expenses equals _____ _____.

Blank 1: contribution Blank 2: margin

Any item for which cost data is desired is called a(n) _____ _____.

Blank 1: cost Blank 2: object

A change in revenues between two alternatives is known as _____ revenue or incremental revenue.

Blank 1: differential

Product costs are also called _____ costs.

Blank 1: inventoriable or manufacturing

The accrual concept that costs incurred to generate a revenue are expensed in the same period the revenue is recognized is known as the _____ principle.

Blank 1: matching

Manufacturing costs can be divided into three categories: direct _____, _____ labor and manufacturing _____.

Blank 1: materials or material Blank 2: direct or touch Blank 3: overhead or burden

A potential benefit that is forfeited or lost when one decision is chosen over another is called a(n) _____ _____.

Blank 1: opportunity Blank 2: cost

On a traditional income statement, cost of goods sold reports the _____ costs attached to merchandise sold during the period, while selling and administrative expenses report all _____ costs that have been expensed as incurred.

Blank 1: product or manufacturing Blank 2: period

Customers, employees, suppliers, communities, and environmental and human rights advocates are all stakeholders which a company might have a corporate _____ _____ to serve.

Blank 1: social Blank 2: responsibility, duty, or obligation

Big Data can be both _____, such as memos and reports, and _____, such as videos, pictures, audio, and other digital forms.

Blank 1: structured Blank 2: unstructured or nonstructured

An income statement focusing on product and period costs has been prepared using a(n) _____ format, while a(n) _____ format income statement makes a distinction between fixed and variable costs.

Blank 1: traditional or GAAP Blank 2: contribution or contribution margin

The term often used to describe how an organization's functional departments interact with one another to form business processes is _____ _____.

Blank 1: value Blank 2: chain

Cost of goods sold for a merchandising company, direct materials and commissions are all examples of _____ costs.

Blank 1: variable

Without ethical behavior, the quality of products and services would ______.

Decrease

Costs that can be easily and conveniently traced to a specific product are called ______ costs.

Direct

Giving employees an annual bonus increases their intrinsic motivation to pursue company goals.

False

Which of the following is not a COST CLASSIFICATION associated with decision making?

Indirect costs

Which of the following statements is true?

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

Direct materials, direct labor, and manufacturing overhead are all ______ costs.

Product

Which of the following are differences between the traditional and contribution format to income statements?

Traditional income statements focus on cost classifications. Contribution format statements focus on cost behavior. Contribution format statements make it easier to predict how decisions affect the future.

Managerial accounting skills are needed in for profit, not-for-profit and governmental entities.

True

Which of the following is not one of the basic questions asked during the decision making process?

When should we be selling?

Differential cost is ______.

also known as incremental cost the difference in cost between two alternatives

Period costs ______.

are expensed in the period incurred include all costs that are not product costs

Cost behavior ______.

categorizes costs as fixed, mixed and variable refers to how a cost will change as activity level changes

Major business functions that add value to a company's products and service comprise a company's value ______.

chain

A type of indirect cost incurred to benefit more than one cost object is a(n) ______ cost.

common

Costs that are shared by multiple cost objects in a company are known as ______ costs.

common

Nonmanufacturing costs include ______.

company president's salary sales commissions

A strategy helps a company distinguish itself from ______.

competitors

Cost objects include ______.

customers organizational subunits anything for which cost data is desired

Differential costs, opportunity costs and sunk costs are all cost classifications used in ______.

decision making

Fantastic Furniture makes custom order couches. The material used to make a couch is a(n) ______ cost of the customer placing the order.

direct

Managerial accounting ______.

emphasizes the future emphasizes relevance reports to managers inside the organization is not mandatory

Companies have a corporate social responsibility to serve ______.

employees customers communities suppliers

Lower quality goods and services, less from which to choose and higher prices are all possible effects of abandoning ______.

ethical behavior

Administrative costs include ______.

executive compensation and public relations costs

Within the relevant range of activity, ______ costs remain constant in total.

fixed

Product costs flow through the inventory accounts until the goods are sold, at which time they are matched against sales on the ______.

income statement

The difference in revenues between two alternatives is called ______.

incremental revenue

Motivation that comes from within is known as _____ motivation.

intrinsic or internal

Perhaps the most basic managerial skill is the ability to ______.

make intelligent decisions

Direct materials and direct labor are both ______ costs.

manufacturing

Parties more interested in managerial accounting data than in financial accounting data include ______.

sales managers production managers

Contribution margin is ______.

sales revenue minus variable costs

Opportunity costs ______.

should be considered in decision making are benefits lost when choosing one option over another

A game plan that enables a company to attract customers by distinguishing itself from competitors is a(n) _____.

strategy

Period costs are always expensed on the income statement in the period in which ______.

they are incurred

Managerial accounting skills are ______.

useful in a variety of careers and industries

Within the relevant range, a cost that changes in direct proportion to changes in the activity level is a ______ cost.

variable