ACG 2071 FSU EXAM Questions with Verified
Correct Answers
planning
setting goals and objectives for organizations. Think: what are they wanting to accomplish?
directing
overseeing the day-to-day operations. Think: where can we improve? are we achieving goals?
controlling
evaluating results and making adjustments
managerial accounting focuses on...
relevant information that affects future operations
Sustainability
the ability to meet the needs of the present without compromising the ability of future
generations to meet their own needs
What are the three pillars of sustainability
3Ps: people (social), planet (environment), and profit (economic)
What is ethical behavior?
it means to do the right thing, regardless of the consequences. Not all unethical behavior is
illegal but all illegal behavior is unethical.
What are 2 ways to generate profit?
Increase revenues or sales, and/or decrease expenses/costs
, What are 3 types of companies?
service (intangible), merchandising (reselling), and manufacturing (producing)
What are the 3 types of inventory for manufacturing companies?
Raw materials, work in progress, and finished goods
What is a cost object?
this is anything that we as a company need to know and figure out the cost of
What is a direct costs?
any cost that we can TRACE DIRECTLY to a cost object.
What is an indirect cost?
any cost that we CANNOT trace to a cost object, therefore we must allocate them.
Example of direct cost
the cost object is a football team and the direct cost are the equipment for the players, salaries
of coaches, etc.
Example of indirect cost
the cost object is the deli section of a grocery store, the indirect cost is the salaries of the
checkout clerk, the cost of carts, etc.
What is an product cost?
this is the cost that is incurred when companies resell their product. It's the cost to produce
the good.
What are examples of period costs?
Correct Answers
planning
setting goals and objectives for organizations. Think: what are they wanting to accomplish?
directing
overseeing the day-to-day operations. Think: where can we improve? are we achieving goals?
controlling
evaluating results and making adjustments
managerial accounting focuses on...
relevant information that affects future operations
Sustainability
the ability to meet the needs of the present without compromising the ability of future
generations to meet their own needs
What are the three pillars of sustainability
3Ps: people (social), planet (environment), and profit (economic)
What is ethical behavior?
it means to do the right thing, regardless of the consequences. Not all unethical behavior is
illegal but all illegal behavior is unethical.
What are 2 ways to generate profit?
Increase revenues or sales, and/or decrease expenses/costs
, What are 3 types of companies?
service (intangible), merchandising (reselling), and manufacturing (producing)
What are the 3 types of inventory for manufacturing companies?
Raw materials, work in progress, and finished goods
What is a cost object?
this is anything that we as a company need to know and figure out the cost of
What is a direct costs?
any cost that we can TRACE DIRECTLY to a cost object.
What is an indirect cost?
any cost that we CANNOT trace to a cost object, therefore we must allocate them.
Example of direct cost
the cost object is a football team and the direct cost are the equipment for the players, salaries
of coaches, etc.
Example of indirect cost
the cost object is the deli section of a grocery store, the indirect cost is the salaries of the
checkout clerk, the cost of carts, etc.
What is an product cost?
this is the cost that is incurred when companies resell their product. It's the cost to produce
the good.
What are examples of period costs?
