ACC 241 FINAL EXAM WITH CORRECT
ANSWERS /GRADED A
1. What are the three responsibilities of managers? - ANSWER-1. Plan
Direct
Control
2. Planning - ANSWER-Setting up goals and objectives and then
developing strategies to obtain those goals.
3. Directing - ANSWER-Overseeing the company's day-to-day operations.
4. Controlling - ANSWER-Evaluating results against the plan and then
making necessary adjustments.
5. What are the characteristics of managerial accounting? - ANSWER-1. It
focuses on the future
2. Managers decide on what they want to report
3. Data needs to be relevant not objective
4. There are no independent audits
6. What are the roles of management accounting? - ANSWER-1. Ensure
that financial records are accurate
2. Plan, analyze, and interpret financial data
3. Provide decision support
4. Impact of technology
7. Institute of management accountants (IMA) - ANSWER-A professional
institution for management accountants. They help further continue
your education, ethical standards, research, and certification.
,8. Unethical behavior includes what? - ANSWER-- Dishonesty
- Unfairness
- Lack of objectivity
- Irresponsibility
9. Enterprise resource planning (ERP). What are the advantages and
disadvantages? - ANSWER-A system that integrates a company's
function, department, and data.
10. Advantages:
- Streamline operations
- Reacts quickly to changes
- Can replace system software
11. Disadvantage:
- Expensive
12. Just-in-time inventory reduces what? - ANSWER-- Raw materials
and finished goods inventory
- Storage and handling costs
13. Value chain - ANSWER-- R&D
- Research
- Production/purchases
- Marketing
- Distribution
- Customer service
14. Direct cost - ANSWER-A cost that can be traced back to the cost
object.
15. Indirect cost - ANSWER-A cost that can't be traced back to the
cost object.
, 16. Inventoriable product costs - ANSWER-Costs incurred during the
production/purchases stage.
17. Period costs - ANSWER-Aka operating expense never become
part of inventory and includes all stages in the value chain except for
production/purchases.
18. Merchandising inventoriable costs - ANSWER-Includes cost of
purchasing product from suppliers and costs incurred when
transferring product to place of business.
19. Prime costs - ANSWER-Includes DL and DM.
20. Conversion costs - ANSWER-Includes MOH and DL.
21. Fringe benefits are expensed as what? - ANSWER-Expensed as
period costs for non-manufacturing employees.
22. All inventoriable costs should what? - ANSWER-Should stay in
the inventory until it is sold which then becomes cogs.
23. Cost of goods manufactured - ANSWER-Cost of goods that were
completed and moved into finished goods.
24. Differential costs - ANSWER-The difference of costs between 2
alternatives.
25. Direct labor is treated as what kind of cost? - ANSWER-Variable
cost.
ANSWERS /GRADED A
1. What are the three responsibilities of managers? - ANSWER-1. Plan
Direct
Control
2. Planning - ANSWER-Setting up goals and objectives and then
developing strategies to obtain those goals.
3. Directing - ANSWER-Overseeing the company's day-to-day operations.
4. Controlling - ANSWER-Evaluating results against the plan and then
making necessary adjustments.
5. What are the characteristics of managerial accounting? - ANSWER-1. It
focuses on the future
2. Managers decide on what they want to report
3. Data needs to be relevant not objective
4. There are no independent audits
6. What are the roles of management accounting? - ANSWER-1. Ensure
that financial records are accurate
2. Plan, analyze, and interpret financial data
3. Provide decision support
4. Impact of technology
7. Institute of management accountants (IMA) - ANSWER-A professional
institution for management accountants. They help further continue
your education, ethical standards, research, and certification.
,8. Unethical behavior includes what? - ANSWER-- Dishonesty
- Unfairness
- Lack of objectivity
- Irresponsibility
9. Enterprise resource planning (ERP). What are the advantages and
disadvantages? - ANSWER-A system that integrates a company's
function, department, and data.
10. Advantages:
- Streamline operations
- Reacts quickly to changes
- Can replace system software
11. Disadvantage:
- Expensive
12. Just-in-time inventory reduces what? - ANSWER-- Raw materials
and finished goods inventory
- Storage and handling costs
13. Value chain - ANSWER-- R&D
- Research
- Production/purchases
- Marketing
- Distribution
- Customer service
14. Direct cost - ANSWER-A cost that can be traced back to the cost
object.
15. Indirect cost - ANSWER-A cost that can't be traced back to the
cost object.
, 16. Inventoriable product costs - ANSWER-Costs incurred during the
production/purchases stage.
17. Period costs - ANSWER-Aka operating expense never become
part of inventory and includes all stages in the value chain except for
production/purchases.
18. Merchandising inventoriable costs - ANSWER-Includes cost of
purchasing product from suppliers and costs incurred when
transferring product to place of business.
19. Prime costs - ANSWER-Includes DL and DM.
20. Conversion costs - ANSWER-Includes MOH and DL.
21. Fringe benefits are expensed as what? - ANSWER-Expensed as
period costs for non-manufacturing employees.
22. All inventoriable costs should what? - ANSWER-Should stay in
the inventory until it is sold which then becomes cogs.
23. Cost of goods manufactured - ANSWER-Cost of goods that were
completed and moved into finished goods.
24. Differential costs - ANSWER-The difference of costs between 2
alternatives.
25. Direct labor is treated as what kind of cost? - ANSWER-Variable
cost.
