Ch. 1 Intro
What are a Manager's Three Primary Responsibilities?
Planning, Directing and Controlling
The activities that add value (and cost) to a company's products and services is called what?
The Value Chain
What are the three types of inventory for a manufacturing company?
Raw Materials Inventory, Work in Process Inventory, Finished Goods Inventory
Who are the primary users of managerial accounting information? Internal Users or External Users?
If the cost object is a Toyota Corolla, the cost of the engine would be considered a direct or indirect cost?
Direct Cost
Is Estimated Overhead or Actual Overhead used to allocated overhead to a job?
Estimated overhead is used to allocate overhead.
What are the Four Ethical Standards developed by the IMA?
Competence, Confidentiality, Integrity, and Credibility
When are period costs expensed?
Immediately
What is the formula for calculating the predetermined overhead rate?
Total Estimated Overhead/Total estimated allocation base
What are the components of the triple bottom line?
Profit, People, Planet
Indirect Cost
If Actual Overhead>Allocated Overhead have you over or under allocated?
Underallocated.
An accountant who does not understand accrual accounting is not in compliance with which of the four ethical standards put out by the IMA?
Competence
When are product costs expensed?
Product costs are expensed when the goods are sold.
What is the total cost of Job 100 if Direct Materials are $100, Direct Labor is $200, 10 machine hrs were used in the manufacturing and the Predetermined Overhead rate is $5/machine hr.
$350
$100 + $200 + (10 X $5)