ACC 241 Final Exam 100% Solved!!
What are the three responsibilities of managers? - ANSWERS1. Plan
2. Direct
3. Control
Planning - ANSWERSSetting up goals and objectives and then developing strategies to
obtain those goals.
Directing - ANSWERSOverseeing the company's day-to-day operations.
Controlling - ANSWERSEvaluating results against the plan and then making necessary
adjustments.
What are the characteristics of managerial accounting? - ANSWERS1. 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? - ANSWERS1. 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) - ANSWERSA professional institution for
management accountants. They help further continue your education, ethical standards,
research, and certification.
Unethical behavior includes what? - ANSWERS- Dishonesty
- Unfairness
- Lack of objectivity
- Irresponsibility
Enterprise resource planning (ERP). What are the advantages and disadvantages? -
ANSWERSA system that integrates a company's function, department, and data.
Advantages:
- Streamline operations
- Reacts quickly to changes
- Can replace system software
Disadvantage:
- Expensive
, Just-in-time inventory reduces what? - ANSWERS- Raw materials and finished goods
inventory
- Storage and handling costs
Value chain - ANSWERS- R&D
- Research
- Production/purchases
- Marketing
- Distribution
- Customer service
Direct cost - ANSWERSA cost that can be traced back to the cost object.
Indirect cost - ANSWERSA cost that can't be traced back to the cost object.
Inventoriable product costs - ANSWERSCosts incurred during the production/purchases
stage.
Period costs - ANSWERSAka operating expense never become part of inventory and
includes all stages in the value chain except for production/purchases.
Merchandising inventoriable costs - ANSWERSIncludes cost of purchasing product
from suppliers and costs incurred when transferring product to place of business.
Prime costs - ANSWERSIncludes DL and DM.
Conversion costs - ANSWERSIncludes MOH and DL.
Fringe benefits are expensed as what? - ANSWERSExpensed as period costs for non-
manufacturing employees.
All inventoriable costs should what? - ANSWERSShould stay in the inventory until it is
sold which then becomes cogs.
Cost of goods manufactured - ANSWERSCost of goods that were completed and
moved into finished goods.
Differential costs - ANSWERSThe difference of costs between 2 alternatives.
Direct labor is treated as what kind of cost? - ANSWERSVariable cost.
MOH includes what kind of costs? - ANSWERSVariable and fixed costs.
What is the formula to calculate total cost? - ANSWERSTOTAL FIXED COST +
(VARIABLE COST PER UNIT X NUMBER OF UNITS)
What are the three responsibilities of managers? - ANSWERS1. Plan
2. Direct
3. Control
Planning - ANSWERSSetting up goals and objectives and then developing strategies to
obtain those goals.
Directing - ANSWERSOverseeing the company's day-to-day operations.
Controlling - ANSWERSEvaluating results against the plan and then making necessary
adjustments.
What are the characteristics of managerial accounting? - ANSWERS1. 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? - ANSWERS1. 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) - ANSWERSA professional institution for
management accountants. They help further continue your education, ethical standards,
research, and certification.
Unethical behavior includes what? - ANSWERS- Dishonesty
- Unfairness
- Lack of objectivity
- Irresponsibility
Enterprise resource planning (ERP). What are the advantages and disadvantages? -
ANSWERSA system that integrates a company's function, department, and data.
Advantages:
- Streamline operations
- Reacts quickly to changes
- Can replace system software
Disadvantage:
- Expensive
, Just-in-time inventory reduces what? - ANSWERS- Raw materials and finished goods
inventory
- Storage and handling costs
Value chain - ANSWERS- R&D
- Research
- Production/purchases
- Marketing
- Distribution
- Customer service
Direct cost - ANSWERSA cost that can be traced back to the cost object.
Indirect cost - ANSWERSA cost that can't be traced back to the cost object.
Inventoriable product costs - ANSWERSCosts incurred during the production/purchases
stage.
Period costs - ANSWERSAka operating expense never become part of inventory and
includes all stages in the value chain except for production/purchases.
Merchandising inventoriable costs - ANSWERSIncludes cost of purchasing product
from suppliers and costs incurred when transferring product to place of business.
Prime costs - ANSWERSIncludes DL and DM.
Conversion costs - ANSWERSIncludes MOH and DL.
Fringe benefits are expensed as what? - ANSWERSExpensed as period costs for non-
manufacturing employees.
All inventoriable costs should what? - ANSWERSShould stay in the inventory until it is
sold which then becomes cogs.
Cost of goods manufactured - ANSWERSCost of goods that were completed and
moved into finished goods.
Differential costs - ANSWERSThe difference of costs between 2 alternatives.
Direct labor is treated as what kind of cost? - ANSWERSVariable cost.
MOH includes what kind of costs? - ANSWERSVariable and fixed costs.
What is the formula to calculate total cost? - ANSWERSTOTAL FIXED COST +
(VARIABLE COST PER UNIT X NUMBER OF UNITS)
