WGU C213 Topics 9-10 Quizzes 2022/2023

Good management accounting is motivated by: - Government regulators - Accounting rules - Management's desire to improve - All of these are correct - ANSWER Management's desire to improve Production prioritizing ...

Good management accounting is motivated by: - Government regulators - Accounting rules - Management's desire to improve - All of these are correct - ANSWER Management's desire to improve Production prioritizing is: - ANSWER The continual evaluation of the profitability of the various product lines and divisions. The control of operations involves all the following procedures EXCEPT: - Tracking actual performance - Analyzing results - Creating performance measures - Establishing expectations - ANSWER Analyzing results Which of the following principles are the LEAST uniform and are NOT mandatory? - Financial reporting principles - Tax reporting principles - All of these are equally uniform and mandatory - Management accounting principles - ANSWER Management accounting principles The first step in management planning is: - ANSWER Defining the problem With regard to a particular company, which of the following groups generally has the widest variety of decisions to make? - ANSWER Managers Which of the following would NOT be included in manufacturing overhead? - Factory utilities - Direct labor - Indirect materials - Factory fire insurance - ANSWER Direct labor You want to go skiing for the day. The cost of the lift ticket would be considered a(n): - ANSWER Out-of-pocket cost You currently work as a machinist in a factory. Your salary is $15 per hour. You are thinking about quitting your job and going back to college. It will take you two years to obtain your college degree. Tuition and other costs of the education will total $21,000. You spent $9,000 preparing to be a machinist. In considering whether to go back to school, the $9,000 of prior training is a(n): - ANSWER Sunk cost Zodiac Company's total costs are the same at all levels of activity. The company's cost structure must have all: - ANSWER Fixed costs You want to go skiing for the day. However, you realize you are scheduled to work. If you call in sick and do not go to work, the wages you will not earn (assuming you are an hourly employee) are considered a(n): - ANSWER Opportunity cost A nonmanufacturing cost is usually classified as: - ANSWER Period cost The top accountant in most large organizations is usually called the: - ANSWER Controller Which one of the following is NOT an ethical guideline that the Institute of Management Accountants (IMA) requires its members to follow? - Not disclose confidential information - Maintain objectivity when communicating information to decision makers - Act with both actual and apparent integrity in all situations - All of these are correct - ANSWER All of these are correct What is the first step a business professional should take when confronted with a situation that may involve an ethical conflict? - ANSWER Discuss the problem with the immediate supervisor. Assume that direct labor and direct materials are the major cost components of a product and that the small amount of overhead cost can easily be associated with products using a simple overhead allocation basis such as direct labor hours. Which one of the following statements is the most correct? - Activity-based costing should probably be used in this situation. - Activity-based costing is probably too expensive to justify using it in this situation. - Job order costing is probably too expensive to justify using it in this situation. - None of these are correct - ANSWER Activity-based costing is probably too expensive to justify using it in this situation. Activity-based costing systems assume that: - ANSWER Activities consume overhead costs Which of the following types of costing systems identifies business activities that create overhead costs and then assigns overhead to products or divisions according to these activities? - Unit-based costing - Job order costing - Process costing - Activity-based costing - ANSWER Activity-based costing Activity-based costing deals with the allocation of: - Manufacturing overhead costs - Direct labor costs - Direct material costs - Indirect materials costs - ANSWER Manufacturing overhead costs Traditional product costing systems (e.g. job order costing and process costing) usually assume that: -Products consume overhead costs - Activities consume overhead costs - Overhead costs are insignificant - All of these are correct - ANSWER Products consume overhead costs If activity-based costing is used, property taxes would be classified as a: - ANSWER Facility support activity For greater accuracy when using activity-based costing, management accountants should: - ANSWER Have a reasonable number of cost pools Which of the following would most likely NOT be considered a facility support activity? - Depreciation on headquarters building - Property taxes - Executive salaries - Factory equipment - ANSWER Factory equipment If activity-based costing is used, receiving docks would be classified as a: - ANSWER Product line activity The traditional overhead cost allocation system assumes a simple relationship between overall overhead cost and... - ANSWER Single measure of activity In the Lily Ice Cream example, number of purchase orders is an example of an overhead cost associated with... - ANSWER Servicing the special needs of each individual ice cream flavor A more accurate allocation of manufacturing overhead and product costing can take place when costs are assigned on the basis of: - ANSWER Cost drivers With activity-based costing, overhead costs are assigned using: - ANSWER Cost drivers An appropriate cost driver for inspection costs is: - ANSWER Number of inspections completed Which of the following products usually consumes the highest amount of overhead costs per unit? - ANSWER Low-volume unique products