Accounting 2
Which of the following statements is true? Every firm can be identified as one type of organization: manufacturer, merchandiser or service company. Some firms operate as more than one type of organization: manufacturer, merchandiser and/or service company.
Some firms operate as more than one type of organization: manufacturer, merchandiser and/or service company.
When applied to business, __ means a company can meet today's needs without sacrificing future generations from meeting their own needs.
Sustainability
Which of the following is NOT one of the V's of big data? Validity Variety Volume Velocity
Validity
Materials are treated as _______ costs when it is not worth the cost or effort to trace them to specific products. (Enter only one word per blank.)
indirect or overhead
Direct materials and direct labor are both ______ costs.
manufacturing
Levi Strauss and Ford Motors are examples of____ firms.
manufacturing
Indirect materials and indirect labor are classified as ______.
manufacturing overhead
Indirect materials include ______.
salt and pepper
Hotels and airlines are examples of ___________ companies.
service
Providing managers with a broader set of information to meet the needs of multiple stakeholders, with the goal of ensuring the company's long-term survival in an uncertain and resource-constrained world is the goal of ________ accounting.
sustainability
True or false: Cost control is a critical concern for most organizations.
true
Which type of cost changes in total, in direct proportion to changes in activity level?
variable costs
Costs that remain constant on a per unit basis are called ___________ costs.
varible
The Sarbanes-Oxley (SOX) Act ______.
was primarily aimed at renewing investor confidence has many implications for managers
Which of the following is not an activity that managers perform on a regular, routine basis? Planning Implementing Controlling Budgeting
Budgeting Reason: Budgeting is typically done on an annual basis.
Which of the following statements are true?
Classifying a cost a product or period can impact reported profitability. The distinction between product and period costs has more to do with financial accounting than managerial accounting.
Managers keep track of how they are doing and determine if adjustments are needed during the ___________ phase.
Controlling
Which of the following statements are true? When making decisions regarding costs, GAAP rules must be followed. Costs are treated differently in different situations. There are many different ways to categorize costs.
Costs are treated differently in different situations. There are many different ways to categorize costs.
What is the primary difference between managerial and financial accounting?
Managerial accounting provides information for internal use and financial accounting provides information to external users.
Determining tactics that management will use to achieve objectives is part of ______.
Planning
The future-oriented aspect of the management process is
Planning
Variable costs ______.
remain constant per unit and vary in total
The standards of conduct for judging right from wrong is referred to as
ethics
True or false: Virtually all accounting and business problems have clear right or wrong answers.
false
True or false: When faced with an ethical dilemma, it is only important to identify those who may be harmed by the decision.
false
Companies with strong ethical cultures ______.
have higher productivity than those without such cultures have higher levels of customer satisfaction
If cost data will be used for decision making, it is important to consider ______.
how costs will behave or change
When faced with an ethical dilemma ______.
identify and evaluate the alternative courses of action identify the parties that will be affected by the situation
Decisions such as deciding how many employees to hire, salary schedules, and training policies are made during the ______ phase of the management process.
implementation
Decisions made during the ___________ phase are sometimes called operational decisions. (Enter only one word per blank.)
implementing
The Sarbanes Oxley Act ______.
includes rules that should help employees make ethical decisions
Wholesalers and retailers are both types of __________ companies.
Merchandising
Which of the following is NOT one of the three categories of businesses? Nonprofit organization Manufacturing firm Service company Merchandising company
Nonprofit organization
A __________ lays out plans in monetary or financial terms. (Enter only one word per blank.)
budget
Cost objects
can be products, customers, or jobs
When making a decision, ______.
cost control is a critical concern for most organizations
Any item a manager wants to know the cost of is called a(n)
cost object
In an automobile manufacturing plant, assembly-line workers' wages are ___ costs.
direct labor
Labor costs that can be easily and conveniently traced to specific products are ______ costs.
direct labor
Manufacturing costs can be divided into three categories:
direct materials direct labor manufacturing overhead
The components of prime costs are ______.
direct materials and direct labor
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 ____ cost.
nonmanufacturing
The distinction between manufacturing and nonmanufacturing costs applies ______.
only to companies that make a physical product
The Sarbanes-Oxley (SOX) Act focuses on three factors that affect the accounting reporting environment:
opportunity, incentives, and character
Determining the key factors that are important to a company's success is a major component of the __________ function.
planning
