ACC 241 Exam #1 Study Guide 100%
Accurate!!
Four primary responsibilities of a manager - ANSWERS-planning
-directing
-controlling
-decision making
Financial Accounting - ANSWERS-external users
-aids in making credit/ investment decisions
-general purpose financial statements -compliance with GAAP
Managerial Accounting - ANSWERS-internal users
-planning, directing, controlling
-internal reports are desired
-not bound by authoritative rules
How management accountants fit into an organization's structure - ANSWERS- They go
beyond working in the controllers office
- They work in marketing
- They work in manufacturing
- They work in finance
Skills required of management accountants - ANSWERS- Teamwork
- Analytical
- Communication
- Business Knowledge
- Accounting Knowledge
The role of the IMA (Institute Management of Accountants) - ANSWERS- Develops and
advances the careers of management accountants through: Certification, practice and
development, networking, advocacy of ethical nd professional conduct
- Educates the public about the role of management accountants
- Publishes a monthly professional journal
- Issues the certificate of Management Accountant (CMA)
Ethical decision-making framework - ANSWERS- Maintain professional competence by
continually developing their knowledge and skills
- Preserve confidentiality of information
- Uphold their integrity
- Perform duties with credibility by communicating fairly and objectively, nd disclosing all
information that is relevant to decision makers
, The purpose and major provisions of the Sarbanes-Oxley Act - ANSWERS- Purpose
was to enhance internal control, financial reporting, audit practices and oversight of the
accounting profession.
- Provisions: CEO and CFO assume responsibility
- Audit committee must be independent
- New requirements for CPA firms
- Stiffer Punishments
Service Companies - ANSWERS- Sell intangible services
- Make up largest part of economy
- Have little to no inventory
Merchandising Companies - ANSWERS- Resell tangible products purchased from
suppliers
- Carry significant inventories
Manufacturing Companies - ANSWERS- Raw material to finished products
- Carries three types of inventory: raw material, work-in process and finished goods
The value chain and its elements - ANSWERS- Interdependent activities that add value
to a company's products and services
- Research and development
- Design
- Production or Purchases
- Marketing
- Distribution
- Costumer Service
Cost Objects - ANSWERSCost object is anything that a manager desires to have a
separate cost measurement for. EX: Unit of product, Class of customer
Direct Costs - ANSWERS-Direct cost is a cost that can be traced to a cost object EX:
Steak
- Direct costs assigned to costs by tracing
Indirect Costs - ANSWERS- Indirect cost is a cost that relates to a cost object but
cannot be traced EX: Property taxes
-- Indirect costs are allocated to cost objects
Inventoriable Costs (Direct Material, Direct Labor, and manufacturing overhead) Versus
period cost - ANSWERS- Inventoriable costs are only the costs incurred during the
production of purchase phase of the value chain
- All other costs beside direct material, labor, and manufacturing overhead is considered
a period cost.
Accurate!!
Four primary responsibilities of a manager - ANSWERS-planning
-directing
-controlling
-decision making
Financial Accounting - ANSWERS-external users
-aids in making credit/ investment decisions
-general purpose financial statements -compliance with GAAP
Managerial Accounting - ANSWERS-internal users
-planning, directing, controlling
-internal reports are desired
-not bound by authoritative rules
How management accountants fit into an organization's structure - ANSWERS- They go
beyond working in the controllers office
- They work in marketing
- They work in manufacturing
- They work in finance
Skills required of management accountants - ANSWERS- Teamwork
- Analytical
- Communication
- Business Knowledge
- Accounting Knowledge
The role of the IMA (Institute Management of Accountants) - ANSWERS- Develops and
advances the careers of management accountants through: Certification, practice and
development, networking, advocacy of ethical nd professional conduct
- Educates the public about the role of management accountants
- Publishes a monthly professional journal
- Issues the certificate of Management Accountant (CMA)
Ethical decision-making framework - ANSWERS- Maintain professional competence by
continually developing their knowledge and skills
- Preserve confidentiality of information
- Uphold their integrity
- Perform duties with credibility by communicating fairly and objectively, nd disclosing all
information that is relevant to decision makers
, The purpose and major provisions of the Sarbanes-Oxley Act - ANSWERS- Purpose
was to enhance internal control, financial reporting, audit practices and oversight of the
accounting profession.
- Provisions: CEO and CFO assume responsibility
- Audit committee must be independent
- New requirements for CPA firms
- Stiffer Punishments
Service Companies - ANSWERS- Sell intangible services
- Make up largest part of economy
- Have little to no inventory
Merchandising Companies - ANSWERS- Resell tangible products purchased from
suppliers
- Carry significant inventories
Manufacturing Companies - ANSWERS- Raw material to finished products
- Carries three types of inventory: raw material, work-in process and finished goods
The value chain and its elements - ANSWERS- Interdependent activities that add value
to a company's products and services
- Research and development
- Design
- Production or Purchases
- Marketing
- Distribution
- Costumer Service
Cost Objects - ANSWERSCost object is anything that a manager desires to have a
separate cost measurement for. EX: Unit of product, Class of customer
Direct Costs - ANSWERS-Direct cost is a cost that can be traced to a cost object EX:
Steak
- Direct costs assigned to costs by tracing
Indirect Costs - ANSWERS- Indirect cost is a cost that relates to a cost object but
cannot be traced EX: Property taxes
-- Indirect costs are allocated to cost objects
Inventoriable Costs (Direct Material, Direct Labor, and manufacturing overhead) Versus
period cost - ANSWERS- Inventoriable costs are only the costs incurred during the
production of purchase phase of the value chain
- All other costs beside direct material, labor, and manufacturing overhead is considered
a period cost.
