module 4 accounting
Which of the following statements is true?
Management accountants need strong, financial accounting skills
Within the relevant range, a cost that changes in direct proportion to changes in the activity level is
Variable
Which of the following is not one of the basic questions asked during the decision making process
When should we be selling?
A likely result of abandoning ethical standards is
a less efficient economy
Which of the following are most likely fixed costs
Administrative salaries Factory rent Factory insurance
Management's detailed plans for the future are often expressed formally in
Budget
Fixed costs that cannot easily be changed, and often lock a company into a multiyear decision called
Committed
calls that can be easily and conveniently traced to a specific product are called
Direct cost
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
Major business functions that add value to a company's products and services compromise a companies value
chain
A type of indirect cost incurred to Benefit more than one cost object is a
common cost
A strategy helps a company distinguish itself from ______.
competitors
Sales revenue minus variable expenses equals
contribution margin
Within the relevant range of activity
costs and activity can be approximated by a straight line fixed costs remain constant in total
Customer chooses one company over another because of
customer value propositions
cost objects include
customers organizational subunits anything for which cost data is desired
Undesirable events that have already happened are uncovered by ______ controls
detective
The difference in revenues between two alternatives is called ______.
differential revenue
Fantastic Furniture makes custom order couches. The material used to make a couch is a(n) ______ cost of the customer placing the order.
direct
Manufacturing costs include
direct materials, direct labor, manufacturing overhead
Planning involves
establishing goals and specifying how to achieve them
Giving employees a bonus for meeting a specific goal is an example of
extrinsic
Indirect labor costs include
factory security guard wages, assembly-line supervisor salary
Perhaps the most basic managerial skill is the ability to
make intelligent decisions
Product costs are also called
manufacturing costs
A report comparing actual results to budgeted amounts that is often used to reward and evaluate employees is called a(n) _________ report.
performance
The management activity off ________ includes specifying how to achieve established goals
planning
three activities vital to the role of managerial accounting are
planning, controlling, decision making
The materials that go into the final product are called
raw materials
Managerial Accounting
reports to Manager's inside the organization for planning, controlling and decision making Emphasizes decision affecting the future Emphasizes relevance Emphasizes timeliness Emphasizes segments reports Does not need to follow GAAP Not mandatory
Non-manufacturing costs include
sales commissions company president's salary
A game plan that enables a company to attract customers by distinguishing itself from competitors is a(n)
strategy
committed fixed costs include
top management salaries real estate taxes
A fixed cost remains fixed ______ within the relevant range of activity.
total
Managerial accounting skills are
useful in a variety of careers and industries
The term often used to describe how an organizations functional departments interact with one another to form. Business processes is.
value chain
Cost of goods sold for merchandising company direct materials and commissions are all examples of
variable costs
Parties more interested in managerial accounting data than in financial accounting data include
- production managers - sales managers
The primary role of managerial accountant is to
Partner with coworkers within the organization to help improve performance
A budget is a detailed plan for the future that is usually expressed in formal qualitative terms.
Pause
A performance report
helps identify, and illuminate sources of unsatisfactory performance Can be used to help evaluate and reward employees
cost behavior
how a cost reacts to changes in the level of activity Categorized as cost as fixed, mixed and variable
Period Costs
include all costs that are not product cost Our expenses in the. Incurred.
salaries of factory, supervisors and factory maintenance personnel are examples of
indirect labor costs
Manufacturing overhead costs include
indirect materials, factory supervisors' salaries, and factory depreciation
Motivation that comes from within is known as
intrinsic motivation
