ACCT 2082 - Exam 1 part 3 PDF

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ACCT 2082 - Exam 1 part 3...

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1 1.) Ethical behavior involves choosing actions that are right, proper, and just. Answer: True 2.) Ethical failures no longer occur in businesses across the globe. Answer: false 3.) The controller of an organization participates in: Answer: Controlling Planning Decision making 4.) Managerial accounting is the provision of accounting for a company's external users. Answer: False 5.) Providing an analysis for a company regarding adding a particular product line, retracting sales markets, or dealing with risks or opportunities are some of the responsibilities of managerial accountants. Answer: True 6.) The detailed formulation of action to achieve a particular end is the management activity called: Answer: Planning 7.) Which of the following is an example of the management activity referred to as planning? Answer: Developing a strategy for disposing of hazardous waste 8.) The standards of ethical conduct for managerial accountants include: Answer: competence, confidentiality, integrity, and credibility. 9.) The use and importance of managerial accounting is growing in each of the following areas except for Answer: -*nanotechnology advancements* -Enterprise risk management - Lean accounting - quality accounting -corporate sustainability reporting 10.) Direct Materials Used in Production equals Beginning Materials Inventory plus Purchases minus Ending Materials Inventory. Answer: True 11.) Assume at the beginning of this period, there was $45,000 worth of materials in Beginning Materials Inventory. $150,000 of raw material are purchased, and the Ending Materials Inventory contains $20,000 worth of materials. The Direct Materials Used in Production would be $125,000. Answer: False 12.) Cost of goods sold represents the cost of goods that were sold during the period and, therefore, transferred from finished goods inventory on the balance sheet to cost of goods sold on the income statement (i.e., as an inventory expense). Answer: True 13.) The Cost of Goods Sold equals the Cost of Goods Manufactured plus the Beginning Finished Goods Inventory minus the Ending Finished Goods Inventory.

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Answer: True 14.) opportunity cost Answer: Linda was having a hard time deciding whether to return to school. She was concerned about the salary she would have to give up for the next 4 years. 15.) Period Cost Answer: Randy Harris is the finished goods warehouse manager for a medium-sized manufacturing firm. He is paid a salary of $90,000 per year. As he studied the financial statements prepared by the local certified public accounting firm, he wondered how his salary was treated. 16.) Product Cost Answer: Marcus Armstrong, manager of Timmins Optical, estimated that the cost of plastic, wages of the technician producing the lenses, and overhead totaled $30 per pair of single-vision lenses 17.) Direct labor cost Answer: The new product required machining, assembly, and painting. The design engineer asked the accounting department to estimate the labor cost of each of the three operations. The engineer supplied the estimated labor hours for each operation. 18.) Selling Cost Answer: The auditor for a soft drink bottling plant pointed out that the depreciation on the delivery trucks had been incorrectly assigned to product cost (through overhead). Accordingly, the depreciation charge was reallocated on the income statement. 19.) The cost of goods manufactured represents the total product cost of goods completed during the current period and transferred to work in process inventory. Answer: False 20.) The Cost of Goods Manufactured equals the Total Manufacturing Cost for the Period plus the Beginning WIP (Work in Process Inventory) minus the Ending WIP. Answer: True 21.) Cost objects do not need to be considered for all business and personal decisions. Answer: False 22.) When providing cost estimates, it is essential to know the decision to which the cost object is related Answer: True 23.) Indirect labor would include Answer: salary of factory supervisor 24.) An opportunity cost is: Answer: the benefit given up or sacrificed when one alternative is chosen over another. 25.) Costs are subdivided into what two major functional categories? Answer: product and non-production 26.) Non-manufacturing costs include

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