Chapter 1 Managerial Accounting and Cost Concepts Questions And Answers Package Deal

Activity Base - ANS A measure of whatever causes the incurrence of a variable cost. For example, the total cost of surgical gloves in a hospital will increase as hte number of surgeries increases. Therefore, the number of surgeries in the activity base that explaines th total cost of surgica...

Bill of materials - ANS A document that shows the quantity of each type of direct material required to make a product Cost driver - ANS A factor, such as machine- hours, beds occupied, computer time, or flight- hours, that causes overhead costs Cost of goods manufactured - ANS ...

Account Analysis - ANS A method for analyzing cost behavior where an account is classified as either variable or fixed based on the analyst's prior knowledge of how the cost in the account behaves (p. 32) Activity Base - ANS A measure of whatever causes the incurrence of a variab...

Why could overhead costs be different for product? - ANS Size/number batches could be very different, one is much more complex to make, one may be newer, need more quality control. External Failure costs - ANS includes product recalls, warranty costs, and legal fees. Value Engi...

Budget - ANS A detailed plan for the future that is usually expressed in formal quantitive term Business process - ANS A series of steps that are followed in order to carry out some task in a business. Constraint - ANS Everything that prevents you from getting more of w...

Raw Materials - ANS materials that go into the final product; the finished product of one company can become the raw materials of another company; MAY INCLUDE DIRECT AND INDIRECT MATERIALS Direct Materials - ANS those materials that become a integral part of the finished product a...

What should you tell your friend about the presence of accounting standards in the US compared to the rest of the world? Who has the authority for standard setting? Who has responsibility? - ANS SEC but it is delegated to private sector What is the economic and political environment in wh...

The financial statement that reports assets, liabilities, and owners' equity is the - ANS balance sheet If liabilities total $150,000 and owners' equity totals $50,000, the assets must total - ANS 200,000 Compute net income: Sales revenue $10,000, Wage expense $4,000, Acc...

Relevance - ANS Accounting information must be capable of making a difference in a decision. Can be predictive, confirmatory, or both. Example: UPS changes past or present expectations based on previous evaluations. Faithful Representation - ANS The numbers and descriptions matc...

"Accounting is ingrained in our society and is vital to our economic system." Do you agree? - ANS Yes Listed here are some items found in the financial statements of Finzelberg. Indicate in which financial statement each item would appear. (a) Service revenue = ? (b) Equipment = ?...

1. What is a conceptual framework? Why is a conceptual framework necessary in financial accounting? - ANS 1. A conceptual framework is a coherent system of interrelated objectives and fundamentals that can lead to consistent standards and that prescribes the nature, function, and limits of f...

Which statement is NOT correct? Question options: a) Financial accounting is the process of providing information to external parties. b) Accounting is about the communication of financial information. c) Accounting is the production of information about an enterprise and the transmission of t...

application form - ANS personnel record which gives the applicant an opportunity to provide complete information as to personal qualifications, training, and experience. change in payroll rate form - ANS document that notifies the proper departments of a change in the employee'...

Why is accounting important? - ANS Businesses, regulatory agencies, and the general public use accounting information Identify the type of activity by choosing the best answer for each question.Select each item listed below as being an identifying, recording, or a communicating activity. ...