Module 3 - Exam 3 Study Deck

Question 1

Accounting for Management that provides useful information to managers for: Planning, Controlling, and Decision Making Purposes

Answer 1

Managerial Accounting

Question 2

Who are the primary users of Financial Accounting and Managerial Accounting?

Answer 2

External; Internal

Question 3

What is the purpose of Financial Accounting and Managerial Accounting?

Answer 3

Help external users to make investment decisions; Help managers Plan, Direct, and control

Question 4

What is the focus orientation of Financial Accounting and Managerial Accounting?

Answer 4

Past; Future

Question 5

What is the scope of of Financial Accounting and Managerial Accounting?

Answer 5

Aggregated; Detailed

Question 6

What is the business unit of of Financial Accounting and Managerial Accounting?

Answer 6

companywide; segment

Question 7

What are the guidelines of Financial Accounting and Managerial Accounting?

Answer 7

Regulated by GAAP; Unregulated. Cost effectiveness

Question 8

What is the emphasis of Financial Accounting and Managerial Accounting?

Answer 8

Objective and Verifiability; Relevance and Timliness

Question 9

What is the frequency of Financial Accounting and Managerial Accounting?

Answer 9

Annual and Quarterly; Dependent on the Management Needs

Question 10

What does private accounting refer to?

Answer 10

Any accountant not working for an auditing firm

Question 11

What does Public Accounting Refer to?

Answer 11

Working for an auditing firm

Question 12

Who establishes the Code of Conduct for management accountants?

Answer 12

The Institute of Management Accountants - Be competent, maintain confidentiality, act with integrity, and communicate in a credible manner

Question 13

Any item for which costs are being separately measured

Answer 13

Cost Object

Question 14

What is the difference between direct cost and indirect costs?

Answer 14

Easily Traceable. Direct labor has physical hands on the work being done.; not cost effectively traceable (manufacturing or factory overhead costs). Indirect are things like managerial costs that happen to produce these items

Question 15

The direct costs associated with manufacturing a product

Answer 15

prime costs

Question 16

Prime Costs formula

Answer 16

Direct Labor + Direct Materials

Question 17

Expenses incurred to convert raw materials into finished goods

Answer 17

Conversion Costs

Question 18

Conversion Costs

Answer 18

Direct Labor + Factory Overhead

Question 19

Direct Costs and Indirect Costs are conisdered ________

Answer 19

Manufacturing Costs

Question 20

Selling Costs and Administrative Costs are considered

Answer 20

Nonmanufacturing Costs

Question 21

Another Name for Manufacturing Costs

Answer 21

Product Costs - Inventoriable. Capitalized First

Question 22

Another name for Nonmanufacturing Costs

Answer 22

Period Costs - Immediately Expensed

Question 23

What does being capitalized mean?

Answer 23

It is not immediately expensed

Question 24

Product Costs are

Answer 24

Direct Materials, Direct Labor, and Factory Overhead

Question 25

Direct Materials in the products costs section =

Answer 25

Materials Inventory on the balance sheet

Question 26

Direct Labor + Factory Overhead on the Costs and Expenses =

Answer 26

Work in Process Inventory on the balance sheet

Question 27

Balance Sheet

Answer 27

Materials Inventory, Work in Process Inventory, Finished Goods Inventory

Question 28

Materials Inventory + Work In Process Inventory on the Balance Sheet =

Answer 28

Finished Goods Inventory on the Balance Sheet.

Question 29

Finished Goods Inventory on the Balance Sheet =

Answer 29

Costs of Goods Sold on the Income Statement

Question 30

Period Costs are

Answer 30

Selling And Administrative

Question 31

The Income Statement Consists of:

Answer 31

Costs of Goods Sold + Selling and Administrative Costs.

Question 32

Why is Selling and Administrative Costs on the income statement as well?

Answer 32

Because period costs flow directly to the income statement because they are expensed immediately.

Question 33

1. Manufacturing Costs =

Answer 33

Direct Material + Direct Labor + Overhead (indirect material + indirect labor + other overhead)

Question 34

2. Direct Materials Used =

Answer 34

beginning direct material + direct material purchased - ending direct material

Question 35

3. COGM =

Answer 35

beginning WIP + manufacturing costs-ending WIP

Question 36

4. COGS =

Answer 36

Beginning finished goods + COGM - ending finished goods

Question 37

Which of the following is not an IMA standard: a. Competence b. Credibility c. Confidentiality d. Comparability

Answer 37

d. Comparability

Question 38

Direct costs:

Answer 38

are easily traced to a particular cost object.

Question 39

The costs of direct materials are classified as: Conversion cost Manufacturing cost Prime cost A) Yes Yes Yes B) No No No C) Yes Yes No D) No Yes Yes

Answer 39

D) No Yes Yes

Question 40

The salary paid to the president of a company would be classified on the income statement as a(n):

Answer 40

Administrative expense

Question 41

Direct labor cost is classified as:

Answer 41

Conversion cost Yes Prime Cost Yes

Question 42

Rotonga Manufacturing Company leases a vehicle to deliver its finished products to customers. Which of the following terms correctly describes the monthly lease payments made on the delivery vehicle?

Answer 42

Period cost

Question 43

The salary paid to the salesman of a company would be classified as a(n):

Answer 43

Period cost

Question 44

Which of the following descriptions is NOT true about managerial accounting? a. regulated by SEC b. detailed c. future oriented d. used by internal users

Answer 44

a. regulated by SEC