ACC 241 Final Exam| 140
Questions and Answers (Graded
A)
What are the three responsibilities of managers? - ANSWER - 1. Plan
2. Direct
3. Control
Planning - ANSWER - Setting up goals and objectives and then developing strategies
to obtain those goals.
Directing - ANSWER - Overseeing the company's day-to-day operations.
Controlling - ANSWER - Evaluating results against the plan and then making
necessary adjustments.
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
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
,Institute of management accountants (IMA) - ANSWER - A professional institution for
management accountants. They help further continue your education, ethical
standards, research, and certification.
Unethical behavior includes what? - ANSWER - - Dishonesty
- Unfairness
- Lack of objectivity
- Irresponsibility
Enterprise resource planning (ERP). What are the advantages and disadvantages? -
ANSWER - A system that integrates a company's function, department, and data.
Advantages:
- Streamline operations
- Reacts quickly to changes
- Can replace system software
Disadvantage:
- Expensive
MOH includes what kind of costs? - ANSWER - Variable and fixed costs.
What is the formula to calculate total cost? - ANSWER - TOTAL FIXED COST +
(VARIABLE COST PER UNIT X NUMBER OF UNITS)
The average cost per unit is not for predicting what? - ANSWER - The total costs at
different level of outputs.
Just-in-time inventory reduces what? - ANSWER - - Raw materials and finished goods
inventory
- Storage and handling costs
Value chain - ANSWER - - R&D
, - Research
- Production/purchases
- Marketing
- Distribution
- Customer service
Direct cost - ANSWER - A cost that can be traced back to the cost object.
Indirect cost - ANSWER - A cost that can't be traced back to the cost object.
Inventoriable product costs - ANSWER - Costs incurred during the
production/purchases stage.
Period costs - ANSWER - Aka operating expense never become part of inventory and
includes all stages in the value chain except for production/purchases.
Merchandising inventoriable costs - ANSWER - Includes cost of purchasing product
from suppliers and costs incurred when transferring product to place of business.
Prime costs - ANSWER - Includes DL and DM.
Conversion costs - ANSWER - Includes MOH and DL.
Fringe benefits are expensed as what? - ANSWER - Expensed as period costs for
non-manufacturing employees.
All inventoriable costs should what? - ANSWER - Should stay in the inventory until it
is sold which then becomes cogs.
Cost of goods manufactured - ANSWER - Cost of goods that were completed and
moved into finished goods.
Questions and Answers (Graded
A)
What are the three responsibilities of managers? - ANSWER - 1. Plan
2. Direct
3. Control
Planning - ANSWER - Setting up goals and objectives and then developing strategies
to obtain those goals.
Directing - ANSWER - Overseeing the company's day-to-day operations.
Controlling - ANSWER - Evaluating results against the plan and then making
necessary adjustments.
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
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
,Institute of management accountants (IMA) - ANSWER - A professional institution for
management accountants. They help further continue your education, ethical
standards, research, and certification.
Unethical behavior includes what? - ANSWER - - Dishonesty
- Unfairness
- Lack of objectivity
- Irresponsibility
Enterprise resource planning (ERP). What are the advantages and disadvantages? -
ANSWER - A system that integrates a company's function, department, and data.
Advantages:
- Streamline operations
- Reacts quickly to changes
- Can replace system software
Disadvantage:
- Expensive
MOH includes what kind of costs? - ANSWER - Variable and fixed costs.
What is the formula to calculate total cost? - ANSWER - TOTAL FIXED COST +
(VARIABLE COST PER UNIT X NUMBER OF UNITS)
The average cost per unit is not for predicting what? - ANSWER - The total costs at
different level of outputs.
Just-in-time inventory reduces what? - ANSWER - - Raw materials and finished goods
inventory
- Storage and handling costs
Value chain - ANSWER - - R&D
, - Research
- Production/purchases
- Marketing
- Distribution
- Customer service
Direct cost - ANSWER - A cost that can be traced back to the cost object.
Indirect cost - ANSWER - A cost that can't be traced back to the cost object.
Inventoriable product costs - ANSWER - Costs incurred during the
production/purchases stage.
Period costs - ANSWER - Aka operating expense never become part of inventory and
includes all stages in the value chain except for production/purchases.
Merchandising inventoriable costs - ANSWER - Includes cost of purchasing product
from suppliers and costs incurred when transferring product to place of business.
Prime costs - ANSWER - Includes DL and DM.
Conversion costs - ANSWER - Includes MOH and DL.
Fringe benefits are expensed as what? - ANSWER - Expensed as period costs for
non-manufacturing employees.
All inventoriable costs should what? - ANSWER - Should stay in the inventory until it
is sold which then becomes cogs.
Cost of goods manufactured - ANSWER - Cost of goods that were completed and
moved into finished goods.
