WSU Accounting 231 Exam 1
Questions with complete solution
2025/2026
Prolouge - correct answer ✔
What is financial and managerial accounting and how do they differ? - correct answer ✔Financial
accounting is concerned with reporting financial information to external parties such as stockholders
and creditors. Managerial accounting provides information to managers for use within the organization.
What are the six business management perspectives described in "Beyond the Numbers?" - correct
answer ✔Ethics, strategic management, enterprise risk management, corporate social responsibility,
process management, and leadership perspective.
What is the ethics perspective? - correct answer ✔It is vitally important that business be conducted
within an ethical framework that builds and sustains trust.
What is the strategic management perspective? - correct answer ✔A "game plan" that enables a
company to attract customers by distinguishing itself from competitors.
What is the enterprise risk management perspective? - correct answer ✔A process used by a company
to identify the risks and develop responses to them that enable it to be reasonably assured of meeting
it's goals.
What is the corporate social responsibility perspective? - correct answer ✔To serve other stakeholders
such as customers, competitors, employees, human rights advocates etc. whose interests are tied to the
company's performance.
What is the process management perspective? - correct answer ✔Series of steps that are followed in
order to carry out some task in a business.
, What is the leadership perspective? - correct answer ✔To unite the behaviors of their fellow
employees around two common themes- pursuit strategic goals and making optimal decisions.
Chapter 1 - correct answer ✔
What is a direct cost? - correct answer ✔Costs that can be easily traced to a unit of product or other
cost object.
(Ex: direct materials and direct labor).
What is an indirect cost? - correct answer ✔Costs that cannot be easily traced to a unit of product or
other cost object.
(Ex: manufacturing overhead).
What are direct materials? - correct answer ✔Raw materials that become a necessary part of the
product and that can be directly traced to it.
(Ex: a radio installed into a car).
What is direct labor? - correct answer ✔Labor costs that can be easily traced to individual units of
product.
(Ex: wages paid to automobile assembly workers).
What is manufacturing overhead? - correct answer ✔Costs that cannot be easily traced to specific units
produced.
(Ex: indirect materials and indirect labor).
What are indirect materials? - correct answer ✔Materials used to support the production process.
(Ex: lubricants for machines within the factory).
Questions with complete solution
2025/2026
Prolouge - correct answer ✔
What is financial and managerial accounting and how do they differ? - correct answer ✔Financial
accounting is concerned with reporting financial information to external parties such as stockholders
and creditors. Managerial accounting provides information to managers for use within the organization.
What are the six business management perspectives described in "Beyond the Numbers?" - correct
answer ✔Ethics, strategic management, enterprise risk management, corporate social responsibility,
process management, and leadership perspective.
What is the ethics perspective? - correct answer ✔It is vitally important that business be conducted
within an ethical framework that builds and sustains trust.
What is the strategic management perspective? - correct answer ✔A "game plan" that enables a
company to attract customers by distinguishing itself from competitors.
What is the enterprise risk management perspective? - correct answer ✔A process used by a company
to identify the risks and develop responses to them that enable it to be reasonably assured of meeting
it's goals.
What is the corporate social responsibility perspective? - correct answer ✔To serve other stakeholders
such as customers, competitors, employees, human rights advocates etc. whose interests are tied to the
company's performance.
What is the process management perspective? - correct answer ✔Series of steps that are followed in
order to carry out some task in a business.
, What is the leadership perspective? - correct answer ✔To unite the behaviors of their fellow
employees around two common themes- pursuit strategic goals and making optimal decisions.
Chapter 1 - correct answer ✔
What is a direct cost? - correct answer ✔Costs that can be easily traced to a unit of product or other
cost object.
(Ex: direct materials and direct labor).
What is an indirect cost? - correct answer ✔Costs that cannot be easily traced to a unit of product or
other cost object.
(Ex: manufacturing overhead).
What are direct materials? - correct answer ✔Raw materials that become a necessary part of the
product and that can be directly traced to it.
(Ex: a radio installed into a car).
What is direct labor? - correct answer ✔Labor costs that can be easily traced to individual units of
product.
(Ex: wages paid to automobile assembly workers).
What is manufacturing overhead? - correct answer ✔Costs that cannot be easily traced to specific units
produced.
(Ex: indirect materials and indirect labor).
What are indirect materials? - correct answer ✔Materials used to support the production process.
(Ex: lubricants for machines within the factory).
