Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/32

Click to flip

32 Cards in this Set

  • Front
  • Back

Which is not a characteristic of management accounting information?

Emphasizes the external financial statments

What are characteristics of management accounting information?

1. Provide detailed info about individual parts of the company.


2. Emphasizes relevance.


3. Focuses on the future.

A management accountant who avoids conflicts of interest meets the ethical standard of:

Integrity

Period costs are:

Selling and administrative expenses

A direct cost of manufacturing a sport boat is:

Cost of the boat engine

This is not part of manufacturing overheads for producing a computer:

Depreciation on delivery trucks

The following are part of manufacturing overheads for producing a computer:

1. Manufacturing plant property taxes.


2. Insurance on plant equipment.


3. Manufacturing plant utilities

1. Would an advertising agency use job orderprocess or process costing? What about acell phone manufacturer?

a. Advertising agency-job orderingcosting; Cell phone manufacturer-process costing

1. For which of the following reasons would anowner of a law firm, want to know the total costs of a job (serving aparticular client)?

To determine the fees to charge clients

Which company is least likely to use a process costing system

accounting firm

which characteristic is the same in both job order costing systems and process costing systems?

Types of product costs

1. The manger of a company used the production costreport to compare budgeted costs to actual costs and then based bonuses on theresults. This is an example of using thereports to:

Evaluate performance

for a sound company, straight-line depreciation on the trucks is a:

fixed cost

1. If a company increases its selling price perunit for Product A, the new breakeven point will:

decrease

if a company increases its fixed costs for product B, then the contribution margin per unit will:

remain the same

1. A company can expect to receive which of thefollowing benefits when its uses a budgeting process?

a. The budget provides mangers with a benchmarkagainst which to compare actual results for performance evaluationb. The budget helps motivate employees to achievesales growth and cost-reduction goalsc. The planning required to develop the budgethelps mangers foresee and avoid potential problems before they occur




d. All of the above

which of the following is the cornerstone of the master budget?

the sales budget

Information technology has made it easier for managers to perform all of the following tasks except:

Removing budgetary slack form the budget

a company would set direct labor standards based on:

time-and-motion studies, continuous improvement, benchmarking

which is not one of the potential advantages of decentralization?

increases goal congruence

which of the following is not a goal of performance evaluation systems?

reprimanding unit mangers

in making short-term special decisions, what should you do?

separate variable from fixed costs

which of the following is relevant to kitchenware.com's decision to accept a special order at a lower sale price from a large customer in china?

the cost of shipping the order to the customer

which of the following costs are irrelevant to business decisions?

sunk costs

when making decisions, managers should consider:

revenues that differ between alternative

when pricing a product or service, managers must consider which of the following?

all costs

in deciding whether to drop its electrongics product line, smith company should consider:

the costs it could save by dropping the product line, how dropping the electornics product line would affect sales of its other products like DVDs, the revenues it would lose form dropping the product line

1. In deciding which product lines to emphasizewhen a production constraint exists, kitchenware.com should focus on theproduct line that has the highest:

contribution margin per unit of the constraining factor

when making outsourcing decisions, which of the following is true?

the variable cost of producing the product in-house is relevant

when deciding whether to sell as is or process a product further, mangers should ignore which of the following?

the costs of processing the product thus far

What is the first step of capital budgeting?

identifying potential projects

both projects generate positive NPV, yet the corporation only chooses the bar coding project. Why?

The company is practicing capital rationing