introduction chapters
chapter 17
Introduction to
Managerial Accounting
goals discussion
goals
achievement
fill
in the blanks
multiple
choice
problems
check list and key terms
Select the appropriate response.
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 or financial accounting
Managerial accounting is more free formed than financial accounting, and tends to focus on products, departments, or activities.
The Institute of Management Accountants sponsors professional designations such as the CMA and:
Good management decision making requires information necessary to plan, direct, and control an organization.
Decision making can be viewed as an integral part of planning and control rather than as a separate independent management function.
Formulating business strategy should include consideration of core values.
There are various types of budgets that can be prepared including operating budges, capital budgets, and:
depreciation budgets or financing budgets
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 or job order method
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:
The controller is the leader of the cost accounting function. Another title for this individual is the:
comptroller or CFO
Which of the following seeks to improve performance by keying on and eliminating bottlenecks within an organization?
Theory of constraints or total quality management
For expediency, minor materials are normally accounted for as indirect materials which are:
included in the direct materials account or treated as part of manufacturing overhead
Another name for factory overhead is:
Direct labor costs should include:
The costs that go into inventory are termed:
Which of the following costs is expensed during the current period?
Errors in determining product costs and period costs will likely affect net income and reported inventory valuations.
On the balance sheet of a manufacturing concern, three key inventory accounts include finished goods, work in process, and:
indirect materials or raw materials
Cost of goods sold is synonymous with cost of goods manufactured for a manufacturing concern.
Indirect materials used is included in calculations on a schedule of cost of goods manufactured.