ACC 241 Exam 1 Questions with
complete solution 2025/2026
4 Primary responsibilities of a manager - correct answer ✔Decision making- identifying alternative
courses of action and choosing among them
Planning-setting goals and objectives for the company and determining how to achieve them
Directing- overseeing the companies day to day operations; management uses sales/cost information by
store, region, distribution channel, ect. to run daily business operations
Controlling- evaluating the results of business operations against the initial plan and making adjustments
to keep the company pressing towards its goal.
average cost - correct answer ✔the total cost divided by the quantity produced
controllable expenses - correct answer ✔cost that management can change in the near term
ex:expenditures for employee bonuses, traveling, training, ads.
Conversion Cost - correct answer ✔Direct Labor + Manufacturing Overhead
cost object - correct answer ✔anything for which managers want a separate measurement of cost
ex: region/department/class of product/ect.
Difference between Financial and Managerial Accounting - correct answer ✔Financial Accounting
focuses on providing stockholders and creditors with the information they need to make investment and
, lending decisions. This information takes place in the form of financial statements such as: income
statements/statement of stockholders equity/balance sheet/statement of cash flows. (REQUIRED BY
GAAP and SEC,PAST,EXTERNAL USERS, FULLY DISCLOSED, INDEPENDENT AUDITORS, RELIABILITY AND
OBJECTIVITY BASED, COMPANY AS A WHOLE, QUARTERLEY AND ANNUAL REPORTING
Managerial accounting focuses on identifying, interpreting, analyzing, and implementing the financial
information internal management needs to run the company efficiently, effectively, and profitability.
(NOT REQUIRED BY ANY ATHORATATIVE RULE,FUTURE,INTERNAL USERS, NO INDEPENDENT AUDITORS,
RELEVANCE EMPHASIZED, FOCUSES ON SEGMENTS, INFO PROVIDED AS NEEDED
Direct Costs - correct answer ✔costs that can be easily and accurately traced to a cost object
ex:cost of a steak in a restaurant (cost object is the meal)
assigned(attached) to cost objects by tracing
Direct Labor - correct answer ✔compensation for employees who physically convert raw materials into
a finished product
ex:wages, payroll tax, health insurance, retirement plan
Direct Materials - correct answer ✔Materials that become an integral part of a finished product and
whose costs can be conveniently traced to it. ex:car manufacturer can trace the cost of a tire to each
unit of finished product
fixed costs - correct answer ✔remain constant over a wide range of activity
ex:insurance cost the same weather you drive 10 or 10,000 miles
complete solution 2025/2026
4 Primary responsibilities of a manager - correct answer ✔Decision making- identifying alternative
courses of action and choosing among them
Planning-setting goals and objectives for the company and determining how to achieve them
Directing- overseeing the companies day to day operations; management uses sales/cost information by
store, region, distribution channel, ect. to run daily business operations
Controlling- evaluating the results of business operations against the initial plan and making adjustments
to keep the company pressing towards its goal.
average cost - correct answer ✔the total cost divided by the quantity produced
controllable expenses - correct answer ✔cost that management can change in the near term
ex:expenditures for employee bonuses, traveling, training, ads.
Conversion Cost - correct answer ✔Direct Labor + Manufacturing Overhead
cost object - correct answer ✔anything for which managers want a separate measurement of cost
ex: region/department/class of product/ect.
Difference between Financial and Managerial Accounting - correct answer ✔Financial Accounting
focuses on providing stockholders and creditors with the information they need to make investment and
, lending decisions. This information takes place in the form of financial statements such as: income
statements/statement of stockholders equity/balance sheet/statement of cash flows. (REQUIRED BY
GAAP and SEC,PAST,EXTERNAL USERS, FULLY DISCLOSED, INDEPENDENT AUDITORS, RELIABILITY AND
OBJECTIVITY BASED, COMPANY AS A WHOLE, QUARTERLEY AND ANNUAL REPORTING
Managerial accounting focuses on identifying, interpreting, analyzing, and implementing the financial
information internal management needs to run the company efficiently, effectively, and profitability.
(NOT REQUIRED BY ANY ATHORATATIVE RULE,FUTURE,INTERNAL USERS, NO INDEPENDENT AUDITORS,
RELEVANCE EMPHASIZED, FOCUSES ON SEGMENTS, INFO PROVIDED AS NEEDED
Direct Costs - correct answer ✔costs that can be easily and accurately traced to a cost object
ex:cost of a steak in a restaurant (cost object is the meal)
assigned(attached) to cost objects by tracing
Direct Labor - correct answer ✔compensation for employees who physically convert raw materials into
a finished product
ex:wages, payroll tax, health insurance, retirement plan
Direct Materials - correct answer ✔Materials that become an integral part of a finished product and
whose costs can be conveniently traced to it. ex:car manufacturer can trace the cost of a tire to each
unit of finished product
fixed costs - correct answer ✔remain constant over a wide range of activity
ex:insurance cost the same weather you drive 10 or 10,000 miles
