which of the following statement is correct regarding socialresponsibility accounting

B

If the company is operating at break-even point: a. its selling price will be equal to its variable expense per unit b. its margin of safety will be equal to zero c. its fixed expenses will be equal to its variable expenses d. its contribution margin will be equal to its variable expenses

D

In order to do their jobs, managers must possess a variety of skills including: a. enterprise risk management skills. b. process management skills. c. measurement skills. d. all of the above.

True

Predetermined overhead rates are necessary because seasonal fluctuations in overhead costs may occur.

D

The IMA's Statement of Ethical Professional Practice includes which of the following broad categories? A. Competence B. Confidentiality C. Integrity D. All of the Above

False

The contribution margin is viewed as a better gauge of the long run profitability of a segment than the segment margin.

True

The salary of the treasurer of a corporation is an example of a common cost which normally cannot be traced to product segments.

A

Which of the following are characteristics of financial accounting? a. Objective and Verifiable b. Relevant and Timely c. Segmented d. All of the above are characteristics of financial accounting.

D

Which of the following statements about corporate social responsibility (CSR) is not correct? a. CSR is a concept whereby organizations consider the needs of all stakeholders when making decisions. b. CSR extends beyond legal compliance. c. CSR includes voluntary actions that satisfy stakeholder expectations. d. All of the above statements are correct.

A

Which of the following statements about the internal control is not correct? a. A company uses internal control to provide absolute assurance that its financial reports are reliable, to achieve efficient and effective operations, and to ensure compliance with applicable laws and regulations. b. The Sarbanes-Oxley Act of 2002 requires that a company's annual report contain an assessment by management of the effectiveness of the company's internal control structure. c. A preventative internal control deters undesirable events from occurring while a detective control detects undesirable events that have already occurred. d. All of the above statements are correct.

Budget

A detailed plan for the future that is usually expressed in formal quantitative terms

Segment

A part or activity of an organization about which managers would like cost, revenue or profit data.

True

A strategy is a game plan that a company uses to distinguish itself from its competitors.

False

Absorption costing is more compatible with cost-volume-profit analysis than is variable costing.

False

Actual manufacturing costs are used to calculate a predetermined overhead rate.

False

Contribution margin and segment margin mean the same thing.

A

Dorra Corporation manufactures lawnmowers in five work stations. Dorra's weekly demand is 5,000 mowers but Dorra can only produce 4,200. According to the theory of constraints, to increase production output Dorra would benefit the most by concentrating improvement efforts on the: a. slowest work station. b. fastest work station. c. last work station. d. first work station.

False

Job cost sheets contain entries for actual direct materials, actual direct labor, and actual manufacturing overhead cost incurred in completing a job.

B

Managerial accounting is concerned with: A. reporting financial information to stockholders. B. providing information for use within the organization. C. the financial consequences of past activities. D. reporting financial information to regulators.

True

One of the reasons that manufacturing overhead is difficult to allocate is the fact that it is made up indirect costs.

False

Organizations should view operations from a functional perspective

Direct materials, Direct Labor, and Manufacturing overhead

The three types of manufacturing costs

False

Under variable costing, fixed manufacturing overhead cost is treated as a product cost.

Lean Production

What type of production usually has the number of units produced equal to the number of units sold.

D

Which of the following statements is correct with regards to a CVP graph? a. A CVP graph shows the maximum possible profit. b. A CVP graph assumes that total expense varies in direct proportion to unit sales. c. A CVP graph shows the operating leverage as the gap between total sales revenue and total expense at the actual level of sales. d. A CVP graph shows the break-even point as the intersection of the total sales revenue line and total expense line.

C

Which of the following statements is not correct? A. Planning involves establishing goals and specifying how to achieve them. B.Controlling involves gathering feedback to ensure that the plan is being properly executed or modified as circumstances change. C. A plan is always expressed in formal quantitative terms. D. Decision making involves selecting a course of action from competing alternatives.

Lean Production

a management approach that organizes recourses such as people and machines around the flow of business processes and that only produces units in response to customer orders.

Theory of Constraints

based on the insight that effectively managing the constraint is a key to success.

Managerial Accounting

concerned with providing information to managers for use within the organization.

Financial Accounting

concerned with reporting financial information to external parties, such as stockholders, creditors, and regulators.

Corporate Social Responsibility

the concept whereby organizations consider the needs of all stakeholders when making decisions.