Exam 3

Question 1

A method of allocating overhead based on each product’s use of activities in making the product.

Answer 1

Activity-based costing (ABC)

Question 2

A performance-measurement approach that uses both financial and nonfinancial measures, tied to company objectives, to evaluate a company’s operations in an integrated fashion.

Answer 2

Balanced scorecard

Question 3

The group of officials elected by the stockholders of a corporation to formulate operating policies and select officers who will manage the company.

Answer 3

Board of directors

Question 4

Corporte officer who has oerall respnsibility for managing the business and delegates responsibilities to other corporate officers.

Answer 4

Chief executive officer (CEO)

Question 5

Corporate officer who is responsible for all of the accounting and finance issues of the company.

Answer 5

Chief financial officer (CFO)

Question 6

Financial officer responsible for a company’s accounting records, system of internal control, and preparation of financial statements, tax returns, and internal reports.

Answer 6

Controller

Question 7

The efforts of a company to employt sustainable business practices with regard to its employees, society, and the environment.

Answer 7

Corporate social responsibility

Question 8

Total cost of work in process less the cost of the ending work in process inventory. Cost of all the items completed during the period.

Answer 8

Cost of goods manufactured

Question 9

The use of techniques, which often combine software and statistics, to analyze data to make informed decisions.

Answer 9

Data analytics

Question 10

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods.

Answer 10

Direct labor

Question 11

Software the provides a comprehensive, centralized, integrted source of information used to manage all major business processes.

Answer 11

Enterprise resource planning (ERP) system

Question 12

Work of factory employee that has no physical association with the finished product or for which it is impractical to trace the costs to the goods produced.

Answer 12

Indirect labor

Question 13

Raw materials that do not physically become part of the finished product or that ar impractical to trace to the finished product because their physical association with the finished product is too small.

Answer 13

Indirect materials

Question 14

Inventory system in which goods are manufactured or purchased just in time for sale.

Answer 14

Just-in-time (JIT) inventory

Question 15

Jobs that are directly involved in a company’s primary revenue-generating operating activities.

Answer 15

Line positions.

Question 16

A field of accounting that provides economic and financial information for managers and other internl users.

Answer 16

Managerial accounting

Question 17

Manufacturing costs that are indirectly associated with the manufacture of the finished product.

Answer 17

Manufacturing overhead

Question 18

Costs that are matched with the revenue of a specific time and charged to expense as incurred.

Answer 18

Period costs

Question 19

Costs that are a necessary and integral part of producing the finished product. All manufacturing costs are cassified as product costs and are included in inventory.

Answer 19

Product costs

Question 20

Law passed by Congress intended to reduce unethical corporate behavior.

Answer 20

Sarbanes-Oxley Act (SOX)

Question 21

Jobs that support the efforts of line employees.

Answer 21

Staff positions

Question 22

A specific approach used to identify and manage constraints in order to achieve the company’s goals.

Answer 22

Theory of constraints

Question 23

Cost of the beginning work in process plus total manufacturing costs for the current period.

Answer 23

Total cost of work in process

Question 24

The sum of direct materials, direct labor, and manufacturing overhead incurred in the current period.

Answer 24

Total manufacturing costs

Question 25

Systems implemented to reduce defects in finished products with the goal of achieving zero defects.

Answer 25

Total quality management (TQM)

Question 26

Financial officer responsible for custody of a company’s funds and for maintaining its cash position.

Answer 26

Treasurer

Question 27

The evaluation of a company’s social responsibility performance with regard to people, planet, and profit.

Answer 27

Triple bottom line

Question 28

All business processes associated with providing a product or performing a service.

Answer 28

Value chain

Question 29

Partially completed manufactured units.

Answer 29

Work in process inventory

Question 30

An area of accounting that focuses on measuring, recording, and reporting product and service costs.

Answer 30

Cost accounting

Question 31

Manufacturing and service cost accounts that are fully integrated into the general ledger of a company.

Answer 31

Cost accounting system

Question 32

A form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job.

Answer 32

Job cost sheet

Question 33

A cost accounting system in which costs are assigned to each job or batch.

Answer 33

Job order cost system

Question 34

A document authorizing the issuance of raw materials from the storeroom to production.

Answer 34

Materials requisition slip

Question 35

A situation in which overhead applied to work in process is greaer than the actual overhead costs incurred.

Answer 35

Overapplied overhead

Question 36

A rate based on the relationship between estimated annual overhead costs and estimated annual operating activity, expressed in terms of a common activity base.

Answer 36

Predetermined overhead rate

Question 37

A cost accounting system used when a company manufactures a large volume of similar products.

Answer 37

Process cost system

Question 38

A document that indicates the employee name, the hours worked, the account and job to be charged, and the total labor cost.

Answer 38

Time ticket

Question 39

A situation in which overhead applied to work in process is less than the actual overhead costs incurred.

Answer 39

Underapplied overhead

Question 40

The sum of direct labor costs and manufacturing overhead costs.

Answer 40

Conversion costs

Question 41

A schedule that shows that the total costs accounted for equal the total costs to be accounted for.

Answer 41

Cost reconciliation schedule

Question 42

A measure of the work done during the period, expressed in fully completed units.

Answer 42

Equivalent units of production

Question 43

A combination of a process cost and a job order cost system in which products are manufactured primarily by standardized methods, with some customization.

Answer 43

Operations costing

Question 44

Actual units to be accounted for during a period, irrespective of their state of completion.

Answer 44

Physical units

Question 45

An accounting system used to assign costs to similar products that are mass-produced in a continuous fashion.

Answer 45

Process cost system

Question 46

An internal report for management that shows both production quantity and cost data for a production department using process costing.

Answer 46

Production cost report

Question 47

The sum of the units completed and transferred out during the period plus the units in process at the end of the period.

Answer 47

Total units accounted for

Question 48

The sum of the units started into production during the period plus the units in process at the beginning of the period.

Answer 48

Total units to be accounted for

Question 49

Costs expressed in terms of equivalent units of production.

Answer 49

Unit production costs

Question 50

Method of computing equivalent units of production that considers the degree of completion (weighting) of the units completed and transferred out and the ending work in process.

Answer 50

Weighted-average method