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ACCT II Quiz 18
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2012-04-08 19:15:44
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sprague elcentro accounting chapter 18
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sprague elcentro accounting chapter 18
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  1. Indirect materials are accounted for as factory overhead because they are not easily traced to specific units or batches of production.

    True or False.
    True
  2. Total quality management and just-in-time manufacturing are two modern systems designed to improve the quality of management and the products and services offered.

    True or False.
    True
  3. The salary paid to the supervisor of an assembly line would normally be classified as:
    A) Indirect labor.
    B) An assembly cost.
    C) A period cost.
    D) A general cost.
    E) Direct labor.
    A) Indirect labor.
    (this multiple choice question has been scrambled)
  4. Costs that flow directly to the current income statement are called:
    A) Product costs.
    B) Capitilized costs.
    C) Balance sheet cost.
    D) Period costs.
    E) General costs.
    D) Period costs.
    (this multiple choice question has been scrambled)
  5. A manufacturing statement is also known as a schedule or listing of the:
    A) Total finished goods.
    B) Raw materials processed.
    C) Cost of goods sold.
    D) Cost of goods manufactured.
    E) Factory supplies used.
    D) Cost of goods manufactured.
    (this multiple choice question has been scrambled)
  6. The total cost of goods completed during the accounting period for a manufacturer is called:
    A) Cost of goods manufactured.
    B) Ending finished goods inventory.
    C) Total manufacturing costs.
    D) Cost of goods sold.
    E) Ending goods in process inventory.
    A) Cost of goods manufactured.
    (this multiple choice question has been scrambled)
  7. Goods a company acquires to use in making products are called:
    A) Conversion costs.
    B) Cost of goods sold.
    C) Finished goods inventory.
    D) Goods in process inventory.
    E) Raw materials inventory.
    E) Raw materials inventory.
    (this multiple choice question has been scrambled)
  8. Period costs for a manufacturing company would flow directly to:
    A) Factory overhead.
    B) Job cost sheet.
    C) The current manufacturing statement.
    D) The current income statement.
    E) The current balance sheet.
    D) The current income statement.
    (this multiple choice question has been scrambled)
  9. The series of activities that add value to a company's products or services is called a value chain.

    True or False.
    True.
  10. A management concept that applies quality improvement to all aspects of business activities is called:
    A) Theory of constraints.
    B) Customer orientation.
    C) Just-in-time.
    D) Continuous operations.
    E) Total quality management.
    E) Total quality management.
    (this multiple choice question has been scrambled)
  11. Costs may be classified by many different cost classifications.

    True or False.
    True.
  12. A direct cost is a cost that is:
    A) Fixed with respect to the volume of activity.
    B) Sunk with respect to a cost object.
    C) Variable with respect to the volume of activity.
    D) Traceable to a cost object.
    E) Identifiable as controllable.
    D) Traceable to a cost object.
    (this multiple choice question has been scrambled)
  13. Classifying costs by behavior involves:
    A) Identifying both quantitative and qualitative cost factors.
    B) Identifying costs in a physical manner.
    C) Identifying all costs.
    D) Identifying cost of goods sold and operating costs.
    E) Identifying fixed cost and variable cost.
    E) Identifying fixed cost and variable cost.
    (this multiple choice question has been scrambled)
  14. Product costs can be classified as one of three types: direct materials, direct labor, or overhead.

    True or False.
    True.
  15. Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it, and estimates and projections are acceptable.

    True or False.
    True.
  16. The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is:
    A) Continuous improvement.
    B) Customer orientation.
    C) Total quality management.
    D) Lean business model.
    E) Managerial accounting.
    D) Lean business model.
    (this multiple choice question has been scrambled)
  17. Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products are called:
    A) All of these.
    B) Finished labor.
    C) Sunk labor.
    D) Direct labor.
    E) Indirect labor.
    D) Direct labor.
    (this multiple choice question has been scrambled)
  18. One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

    True or False.
    True.
  19. When the attitude of continuous improvement exists throughout an organization, every manager and employee seeks to continuously experiment with new and improved business practices.

    True or False.
    True.
  20. An opportunity cost is:
    A) A direct cost.
    B) An uncontrollable cost.
    C) A change in the cost of a component.
    D) A sunk cost.
    E) A cost of potential benefit lost.
    E) A cost of potential benefit lost.
    (this multiple choice question has been scrambled)
  21. Whether a cost is controllable or not controllable by an employee depends on the employee's level of responsibility.

    True or False.
    True.
  22. Materials that are used in support of the production process but are not clearly identified with units or batches of product are called:
    A) Materials inventory.
    B) Direct materials.
    C) Secondary materials.
    D) Indirect materials.
    E) General materials.
    D) Indirect materials.
    (this multiple choice question has been scrambled)
  23. Another title for goods in process inventory is:
    A) Indirect materials inventory.
    B) Conversion costs.
    C) Work in process inventory.
    D) Direct materials inventory.
    E) Raw materials inventory.
    C) Work in process inventory.
    (this multiple choice question has been scrambled)
  24. The Malcolm Baldridge Award was established by:
    A) The U.S. Chamber of Commerce.
    B) The U.S. Congress.
    C) The Malcolm Baldridge Foundation.
    D) The United Nations.
    E) The SEC.
    B) The U.S. Congress.
    (this multiple choice question has been scrambled)
  25. Managerial accounting assists in analysis, planning, and control of costs.

    True or False.
    True.
  26. Managerial accounting provides financial and nonfinancial information to an organization's managers and other internal decision makers.

    True or False.
    True.
  27. A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:
    A) Materiality statement.
    B) Manufacturing statement.
    C) Merchandise statement.
    D) Monetary statement.
    E) Managerial statement.
    B) Manufacturing statement.
    (this multiple choice question has been scrambled)
  28. Product costs:
    A) Are costs that do not vary with the volume of activity.
    B) Include selling and administrative expenses.
    C) Are costs that vary with the volume of activity.
    D) Are expenditures necessary and integral to finished products.
    E) Are expenditures identified more with a time period rather than with finished products.
    D) Are expenditures necessary and integral to finished products.
    (this multiple choice question has been scrambled)
  29. A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called:
    A) Continuous improvement.
    B) Customer orientation.
    C) Total quality management.
    D) Theory of constraints.
    E) Just-in-time.
    B) Customer orientation.
    (this multiple choice question has been scrambled)
  30. An approach to managing inventories and production operations such that units of materials and products are obtained and provided only as they are needed is called:
    A) Continuous improvement.
    B) Customer orientation.
    C) Total quality management.
    D) Theory of constraints.
    E) Just-in-time manufacturing.
    E) Just-in-time manufacturing.
    (this multiple choice question has been scrambled)
  31. A mixed cost:
    A) Does not change with changes in the volume of activity within the relevant range.
    B) Requires the future outlay of cash and is relevant for future decision making.
    C) Has already been incurred and cannot be avoided so it is irrelevant for decision making.
    D) Contains a combination of fixed costs and variable costs.
    E) Is directly traceable to a cost object.
    D) Contains a combination of fixed costs and variable costs.
    (this multiple choice question has been scrambled)
  32. A sunk cost has already been incurred and cannot be avoided or changed, so it is irrelevant to decision making.

    True or False.
    True.
  33. The concept of total quality management focuses on continuous improvement.

    True or False.
    True.
  34. Products that have been completed and are ready to be sold by the manufacturer are called:
    A) Finished goods inventory.
    B) Goods in process inventory.
    C) Cost of goods sold.
    D) Factory supplies.
    E) Raw materials inventory.
    A) Finished goods inventory.
    (this multiple choice question has been scrambled)
  35. Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products are called:
    A) All of these.
    B) Finished labor.
    C) Sunk labor.
    D) Direct labor.
    E) Indirect labor.
    D) Direct labor.
    (this multiple choice question has been scrambled)
  36. A fixed cost:
    A) Is directly traceable to a cost object.
    B) Does not change with changes in the volume of activity within the relevant range.
    C) Requires the future outlay of cash and is relevant for future decision making.
    D) Changes with changes in the volume of activity within the relevant range.
    E) Has already been incurred and cannot be avoided so it is irrelevant for decision making.
    B) Does not change with changes in the volume of activity within the relevant range.
    (this multiple choice question has been scrambled)
  37. The balanced scorecard aids in continuous improvement by augmenting financial measures with information on drivers or indicators of future financial performance.

    True or False.
    True.
  38. Continuous improvement:
    A) Is a measure of profits.
    B) Rejects the notion of "good enough."
    C) Is possible only in service businesses.
    D) Is a measure of costs.
    E) Is not applicable to most businesses.
    B) Rejects the notion of "good enough."
    (this multiple choice question has been scrambled)
  39. Factory overhead costs normally include all of the following except:
    A) Indirect labor costs.
    B) Selling costs.
    C) Machinery oil.
    D) Factory rent.
    E) Indirect material costs.
    B) Selling costs.
    (this multiple choice question has been scrambled)
  40. Both financial and managerial accounting influence user's decisions and actions.

    True or False.
    True.
  41. Products that are in the process of being manufactured but are not yet complete are called:
    A) Cost of goods sold.
    B) Raw materials inventory.
    C) Goods in process inventory.
    D) Finished goods inventory.
    E) Conversion costs.
    C) Goods in process inventory.
    (this multiple choice question has been scrambled)
  42. Benny, an employee of Parrott Company, used company assets for his own personal gain. This is an example of:
    A) embezzlement.
    B) ethics.
    C) fraud.
    D) employment perks.
    E) internal control.
    C) fraud.
    (this multiple choice question has been scrambled)
  43. Four factors come together in the manufacturing process: beginning goods in process inventory, direct materials, direct labor, and factory overhead.

    True or False.
    True.
  44. Which of the following items represents a difference between financial and managerial accounting?
    A) All of these.
    B) Nature of the information.
    C) Users of the information.
    D) Flexibility of practices.
    E) Timeliness and time dimension of the information reported.
    A) All of these.
    (this multiple choice question has been scrambled)
  45. The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

    True or False.
    True.