Managerial Accounting - Questions With Efficient
Solutions
Marginal Cost Right Ans - Extra cost of producing one additional unit of
production.
Unit Cost Right Ans - The average production cost per unit
Continuous Improvement Right Ans - Ongoing small, incremental
improvements in all parts of an organization
Kaizan Right Ans - short term approach to enhancing efficiency that
focuses on improving an existing process or an activity within a process
Direct Cost Right Ans - a cost that can be easily and conveniently traced to
a specified cost object.
Direct Labor Right Ans - the labor specifically used in the creation of a
good.
Direct Materials Right Ans - the materials specifically used in the creation
of a good.
Indirect Cost Right Ans - a cost that cannot be easily and conveniently
traced to a specified cost object, a part of manufacturing overhead.
Manufacturing Overhead Right Ans - everything that is indirectly involved
with the production of a good. not direct materials and not direct labor
Product/ Inventorial Cost Right Ans - costs that are a necessary and
integral part of producing the finished product. shows up on the balance sheet
until product is sold.
Period Cost Right Ans - all non-manufacturing costs, deducted as an
expense in the accounting period in which they are incurred.
Variable Cost Right Ans - a cost that rises or falls depending on how much
is produced. they are constant.
, Fixed Cost Right Ans - a cost that does not change, no matter how much of a
good is produced
Differential Cost Right Ans - A relevant costs: costs that can be avoided
when alternatives are changed.
Opportunity Cost Right Ans - Cost of the next best alternative use of money,
time, or resources when one choice is made rather than another
Sunk Cost Right Ans - Any cost that has already been incurred and that
cannot be changed by any decision made now or in the future. It is never
relevant
TQM Right Ans - Total Quality Management: A process developed by Dr. W.
Ed Deming to increase productivity through quality control techniques.
Just in Time Right Ans - An inventory control system that coordinates
demand and supply to the point where desired materials arrive just when
they are needed. Developed by the auto industry, it refers to shipping goods in
smaller, more frequent lots.
Theory of Constraints Right Ans - A specific approach used to identify and
manage constraints in order to achieve the company's goals.
Process Re engineering Right Ans - The fundamental rethinking and radical
redesign of the business process to achieve dramatic improvement in critical
measures of performance such as cost, quality, service, and speed
Gross Margin a.k.a. Gross Profit Right Ans - Net Sales - COGS
Relevant Range of Activity Right Ans - Range of Activity where the
assumptions about cost are valid
Linear Equation Right Ans - Y= a+bx
Y - total mixed cost
a - fixed costs
b - y intercept
Solutions
Marginal Cost Right Ans - Extra cost of producing one additional unit of
production.
Unit Cost Right Ans - The average production cost per unit
Continuous Improvement Right Ans - Ongoing small, incremental
improvements in all parts of an organization
Kaizan Right Ans - short term approach to enhancing efficiency that
focuses on improving an existing process or an activity within a process
Direct Cost Right Ans - a cost that can be easily and conveniently traced to
a specified cost object.
Direct Labor Right Ans - the labor specifically used in the creation of a
good.
Direct Materials Right Ans - the materials specifically used in the creation
of a good.
Indirect Cost Right Ans - a cost that cannot be easily and conveniently
traced to a specified cost object, a part of manufacturing overhead.
Manufacturing Overhead Right Ans - everything that is indirectly involved
with the production of a good. not direct materials and not direct labor
Product/ Inventorial Cost Right Ans - costs that are a necessary and
integral part of producing the finished product. shows up on the balance sheet
until product is sold.
Period Cost Right Ans - all non-manufacturing costs, deducted as an
expense in the accounting period in which they are incurred.
Variable Cost Right Ans - a cost that rises or falls depending on how much
is produced. they are constant.
, Fixed Cost Right Ans - a cost that does not change, no matter how much of a
good is produced
Differential Cost Right Ans - A relevant costs: costs that can be avoided
when alternatives are changed.
Opportunity Cost Right Ans - Cost of the next best alternative use of money,
time, or resources when one choice is made rather than another
Sunk Cost Right Ans - Any cost that has already been incurred and that
cannot be changed by any decision made now or in the future. It is never
relevant
TQM Right Ans - Total Quality Management: A process developed by Dr. W.
Ed Deming to increase productivity through quality control techniques.
Just in Time Right Ans - An inventory control system that coordinates
demand and supply to the point where desired materials arrive just when
they are needed. Developed by the auto industry, it refers to shipping goods in
smaller, more frequent lots.
Theory of Constraints Right Ans - A specific approach used to identify and
manage constraints in order to achieve the company's goals.
Process Re engineering Right Ans - The fundamental rethinking and radical
redesign of the business process to achieve dramatic improvement in critical
measures of performance such as cost, quality, service, and speed
Gross Margin a.k.a. Gross Profit Right Ans - Net Sales - COGS
Relevant Range of Activity Right Ans - Range of Activity where the
assumptions about cost are valid
Linear Equation Right Ans - Y= a+bx
Y - total mixed cost
a - fixed costs
b - y intercept
