Which area of accounting is concerned primarily with external reporting, that is, reporting the results of economic activities to parties outside the firm?

managerial accounting   Incorrect or    financial accountingCorrect

 

Managerial accounting is more free formed than financial accounting, and tends to focus on products, departments, or activities.

true   Correct or    falseIncorrect

 

The Institute of Management Accountants sponsors professional designations such as the CMA and:

CPA   Incorrect or    CFMCorrect

 

Good management decision making requires information necessary to plan, direct, and control an organization.

seldom   Incorrect or    alwaysCorrect

 

Decision making can be viewed as an integral part of planning and control rather than as a separate independent management function.

true   Correct or    falseIncorrect

 

Formulating business strategy should include consideration of core values.

true   Correct or    falseIncorrect

 

There are various types of budgets that can be prepared including operating budges, capital budgets, and:

depreciation budgets   Incorrect or    financing budgetsCorrect

 

Product costing is an important cost accounting function, and can occur under a variety of methods. The method that is best suited to production that occurs in a homogenous continuous flow is the:

process costing method   Correct or    job order methodIncorrect

 

Modern technology has enabled electronic data exchange between companies, facilitating procurement and other business processes. The acronym that is oftentimes used for this phenomena is:

B2B   Correct or    EOQIncorrect

 

The controller is the leader of the cost accounting function. Another title for this individual is the:

Comptroller   Correct or    CFOIncorrect

 

Which of the following seeks to improve performance by keying on and eliminating bottlenecks within an organization?

theory of constraints   Correct or    total quality managementIncorrect

 

For expediency, minor materials are normally accounted for as indirect materials which are:

included in the direct materials account   Incorrect or   treated as part of manufacturing overheadCorrect

 

Another name for factory overhead is:

factory burden   Correct or   prime costIncorrect

 

Direct labor costs should include:

gross wages   Correct or    net wagesIncorrect

 

The costs that go into inventory are termed:

prime costs    Incorrect or    product costsCorrect

 

Which of the following costs is expensed during the current period?

product costs   Incorrect or   period costsCorrect

 

Errors in determining product costs and period costs will likely affect net income and reported inventory valuations.

true    Correct or    falseIncorrect

 

On the balance sheet of a manufacturing concern, three key inventory accounts include finished goods, work in process, and:

indirect materials   Incorrect or   raw materialsCorrect

 

Cost of goods sold is synonymous with cost of goods manufactured for a manufacturing concern.

true   Incorrect or    falseCorrect

 

Indirect materials used is included in calculations on a schedule of cost of goods manufactured.

true   Correct or    falseIncorrect