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Which of the following is NOT a process associated with an accounting informationsystem?

auditing existing data

Financial accounting information is used for

all of the above(investment decisions, regulatory measures, and stewardship evaluation)

Which of the following does NOT describe cost management system?

externally focused

Which of the following is NOT provided by cost accountants?

financial information for external users

The primary objective of the cost management information system is to provide

management with info useful for planning and control of operations

Cost accounting

all of these

Extending the close of the fiscal year beyond December 31 is a violation of whichstandard of ethical conduct?

competence

When a mgmt accountant attends training seminars on new FASB rules, which part ofthe IMA CodeofConduct is followed?

competence

Disclosing company info (when not legally obligated to do so) would be a violation ofwhich IMA Code of Conduct?

confidentiality

Persons in the United States who provide external auditing services are designated as

Certified Public Accountants

What is the definition of cost in terms of goods/services?

Cost is the cash/cash equivalent value sacrificed for goods/services that are expected to bring a current/future benefit.

What is an expense?

An expense is a cost that expires without producing any revenue benefit.

Which of the following is an example of an expense?

The cost of a product delivered to a customer.

What type of cost is transportation-out for finished goods shipments?

Transportation-out for finished goods shipments is classified as a period cost.

What type of costs are expensed in the period they are incurred?

Nonproduction costs are expensed in the period in which they are incurred.

How are wages paid to a janitor in the factory classified?

Wages paid to a janitor in the factory are classified as factory overhead costs and indirect labor costs.

What classification do selling and administrative costs fall under?

Selling and administrative costs are classified as period costs.

Which costs are NOT classified as period costs?

Indirect material costs are classified as product costs, not period costs.

What classification do wages paid to a janitor NOT fall under?

Wages paid to a janitor in the factory do NOT fall under direct labor costs.

What does cost behavior analysis focus on?

How costs react to changes in activity level.

What happens to fixed cost per unit when activity volume increases within the relevant range?

It decreases.

What is the relevant range in cost analysis?

The range of activity within which a linear cost function is valid.

What happens to variable cost per unit as activity volume increases within the relevant range?

It remains the same.

What is an example of a mixed cost?

Salary plus commission on sales.

What does unused capacity refer to in cost analysis?

When all the activity capacity acquired is not used.

What is a committed fixed expense?

Depreciation of a factory building.

In the formula Y = F + VX, what does V represent?

The slope.

What is the best example of a unit-based cost driver?

Direct labor hours.

direct labor

If unit-based product costing is used, this would be traced directly to the product.

direct labor hours

For a labor-intensive manufacturing operation, this would be the most appropriate activity driver.

Plantwide overhead

This may be better than activity based costing in some cases.

consumption ratio

The proportion of an overhead activity consumed by a product.

activity-based pool rates

More accurate product-costing information is produced by assigning costs using these.

batch-level activity

If activity-based costing is used, materials handling would be classified as this.

facility-level activity

If activity-based costing is used, security is an example of this.

product-level activity

If activity-based costing is used, modifications made by engineering to the product design would be classified as this.

non-unit-based activity drivers

Batch-level costs are assigned using these.

Which product would NOT use job-order costing?

Chemicals

What type of producer would use process costing?

An electronics producer

What does manufacturing overhead consist of?

All manufacturing costs other than direct materials and direct labor

What cost does normal costing use in work in process?

Applied overhead

Which costing systems assign actual costs of materials to inventory?

Both job-order costing and process costing

For what purpose is unit cost information needed?

For all of the above (various managerial decisions)

What is the document that identifies each job and accumulates its manufacturing costs?

Job-order cost sheet

What does a debit balance in Overhead Control indicate?

It gives the total actual overhead costs at a given point in time