ACCOUNTING 245 ACTUAL TEST
1. 3 components of decision making: planning
directing
controlling
2. Planning: setting goals and objectives
3. Directing: overseeing day-to-day operations
4. controlling: evaluating results of operations
5. SOX: -Independent audit committee
-Increases white-collar crime
6. IFRS: -Consistent reporting standards worldwide
7. XBRL: Standardizes tagging system for financial reports
-decreases retrieval time
-decreases conversion time
-customizes information
More consistent use of financial terminology
8. Sustainable managerial accounting: triple bottom line:
-profit
-people
-planet
9. Value chain: R&D->Design->production/purchases->marketing->distribu-
tion->customer service
10. Cost object: Anything for which managers want a separate measurement of
cost
11. Direct cost: easily traced to a cost object (machines)
12. Indirect cost: not easily traced-they are allocated (electricity)
13. Inventoriable product costs: buying the product or making the product
14. Period costs: everything else: r&d, design, marketing, distribution, customer
service
15. Manufacturing overhead: costs that cannot be traced directly to specific units
produced
16. Indirect labor: wages paid to employees who are not directly involved in pro-
duction work (janitors, security guards)
17. Indirect materials: Materials used to support the production process (oils,
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1. 3 components of decision making: planning
directing
controlling
2. Planning: setting goals and objectives
3. Directing: overseeing day-to-day operations
4. controlling: evaluating results of operations
5. SOX: -Independent audit committee
-Increases white-collar crime
6. IFRS: -Consistent reporting standards worldwide
7. XBRL: Standardizes tagging system for financial reports
-decreases retrieval time
-decreases conversion time
-customizes information
More consistent use of financial terminology
8. Sustainable managerial accounting: triple bottom line:
-profit
-people
-planet
9. Value chain: R&D->Design->production/purchases->marketing->distribu-
tion->customer service
10. Cost object: Anything for which managers want a separate measurement of
cost
11. Direct cost: easily traced to a cost object (machines)
12. Indirect cost: not easily traced-they are allocated (electricity)
13. Inventoriable product costs: buying the product or making the product
14. Period costs: everything else: r&d, design, marketing, distribution, customer
service
15. Manufacturing overhead: costs that cannot be traced directly to specific units
produced
16. Indirect labor: wages paid to employees who are not directly involved in pro-
duction work (janitors, security guards)
17. Indirect materials: Materials used to support the production process (oils,
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