Previous QuizPrev Quiz
Managerial Accounting Concepts and Principles
Next QuizNext Quiz

Financial and Managerial Accounting Study Set 1

Business

Quiz 17 :
Managerial Accounting Concepts and Principles

Quiz 17 :
Managerial Accounting Concepts and Principles

Showing 1 - 20 of 49
Next Quiz
arrow
Ethics and professional conduct in business H. Jeckel Manufacturing Company allows employees to purchase, at cost, manufacturing materials, such as metal and lumber, for personal use. To purchase materials for personal use, an employee must complete a materials requisition form, which must then be approved by the employee's immediate supervisor. Fred Rubble, an assistant cost accountant, charges the employee an amount based on H. Jeckel's net purchase cost. Fred Rubble is in the process of replacing a deck on his home and has requisitioned lumber for personal use, which has been approved in accordance with company policy. In computing the cost of the lumber, Fred reviewed all the purchase invoices for the past year. He then used the lowest price to compute the amount due the company for the lumber. Discuss whether Fred behaved in an ethical manner.
Free
Essay
Answer:

Answer:

Ethics and Professional Conduct in Business
The professional ethics encompass various standards set by the people best in business. It involves personal, social and ethical benchmarks being accepted globally.
F.R., the cost accountant of H.J. Manufacturing Company did not behave in an ethical manner by ordering the lumber for making a desk for an employee of the company. The desk will not be used by the company but is being ordered on behalf of the company. Now the company is due for the lumber ordered by the employee. So, the company incurs loss for the amount it has to pay for the lumber that is not used by it. Mr. F. used company's funds in a manipulative manner which is a violation of professional and ethical code of conduct. In such a case, there shall be unwanted loss in the books.
The company's management should, in this situation, impose a strict control over the employees of the company with regard to the manipulation of company's funds and accounting statements.

arrow
What are the major differences between managerial accounting and financial accounting?
Free
Essay
Answer:

Answer:

img

arrow
Classifying costs as materials, labor, or factory overhead Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials cost, direct labor cost, or factory overhead cost: a. Depreciation of robotic assembly line equipment b. V8 automobile engine c. Steering wheel d. Wheels e. Painting safety masks for employees working in the paint room f. Salary of test driver g. Glass used in the vehicle's windshield h. Wages of assembly line worker
Free
Essay
Answer:

Answer:

Direct Cost is that cost which is directly used and plays a significant role in making finished goods.
It is also known as product cost and manufacturing cost. It includes direct materials, direct labor and factory overhead. The cost or wages which directly related to finished goods are known as Direct Material and Direct labor respectively. The cost other than direct cost which does not relates to finished product and not significant portion i.e. known as Factory overheads.
a. Factory Overhead as it does not relates to significant portion of finished product.
b. Direct Material as it is directly relates to finished product.
c. Direct Material as it is directly relates to finished product.
d. Direct Material as it is directly relates to finished product.
e. Factory Overhead as it does not relates to integral part of finished product.
f. Direct Labor as payment of employees wages directly related to product.
g. Factory Overhead as it does not relates to significant portion of finished product
h. Direct Labor as payment of employees wages directly related to product.

arrow
Management process Three phases of the management process are controlling, planning, and decision making. Match the following descriptions to the proper phase: img Three phases of the management process are planning, directing, and controlling. Match the following descriptions to the proper phase: img
Essay
Answer:
arrow
Classifying costs The following is a list of costs that were incurred in the production and sale of large commercial airplanes: a. Salary of chief compliance officer of company b. Power used by painting equipment c. Instrument panel installed in the airplane cockpit d. Annual bonus paid to the chief operating officer of the company e. Turbo-charged airplane engine f. Interior trim material used throughout the airplane cabin g. Cost of normal scrap from production of airplane body h. Hourly wages of employees that assemble the airplane i. Salary of the marketing department personnel j. Cost of paving the headquarters employee parking lot k. Cost of electrical wiring throughout the airplane l. Cost of electronic guidance system installed in the airplane cockpit m. Salary of plant manager n. Cost of miniature replicas of the airplane used to promote and market the airplane o. Human resources department costs for the year p. Metal used for producing the airplane body q. Annual fee to a celebrity to promote the aircraft r. Hydraulic pumps used in the airplane's flight control system s. Yearly cost of the maintenance contract for robotic equipment t. Prebuilt leather seats installed in the first-class cabin u. Depreciation on factory equipment v. Special advertising campaign in Aviation World magazine w. Oil to lubricate factory equipment x. Masks for use by painters in painting the airplane body y. Decals for cockpit door, the cost of which is immaterial to the cost of the final product z. Salary of chief financial officer Instructions Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for your answer, placing an "X" in the appropriate column: img
Essay
Answer:
arrow
Classifying costs The following is a list of costs that were incurred in the production and sale of lawn mowers: a. Premiums on insurance policy for factory buildings b. Tires for lawn mowers c. Filter for spray gun used to paint the lawn mowers d. Paint used to coat the lawn mowers, the cost of which is immaterial to the cost of the final product e. Plastic for outside housing of lawn mowers f. Salary of factory supervisor g. Hourly wages of operators of robotic machinery used in production h. Engine oil used in mower engines prior to shipment i. Salary of vice president of marketing j. Property taxes on the factory building and equipment k. Cost of advertising in a national magazine l. Gasoline engines used for lawn mowers m. Electricity used to run the robotic machinery n. Straight-line depreciation on the robotic machinery used to manufacture the lawn mowers o. Salary of quality control supervisor who inspects each lawn mower before it is shipped p. Attorney fees for drafting a new lease for headquarters offices q. Payroll taxes on hourly assembly line employees r. Telephone charges for company controller's office s. Steering wheels for lawn mowers t. Factory cafeteria cashier's wages u. Cash paid to outside firm for janitorial services for factory v. Maintenance costs for new robotic factory equipment, based on hours of usage w. Cost of boxes used in packaging lawn mowers x. License fees for use of patent for lawn mower blade, based on the number of lawn mowers produced y. Steel used in producing the lawn mowers z. Commissions paid to sales representatives, based on the number of lawn mowers sold Instructions Classify each cost as either a product cost or a period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for your answer, placing an "X" in the appropriate column: img
Essay
Answer:
arrow
Financial versus managerial accounting The following statement was made by the vice president of finance of The Muppet Company: "The managers of a company should use the same information as the shareholders of the firm. When managers use the same information in guiding their internal operations as shareholders use in evaluating their investments, the managers will be aligned with the stockholders' profit objectives." Respond to the vice president's statement.
Essay
Answer:
arrow
a. Differentiate between a department with line responsibility and a department with staff responsibility. b. In an organization that has a Sales Department and a Personnel Department, among others, which of the two departments has (1) line responsibility and (2) staff responsibility?
Essay
Answer:
arrow
Classifying costs as materials, labor, or factory overhead Indicate whether the following costs of Procter Gamble , a maker of consumer products, would be classified as direct materials cost, direct labor cost, or factory overhead cost: a. Plant manager salary for the Iowa City, Iowa, plant b. Maintenance supplies c. Salary of process engineers d. Wages paid to Packaging Department employees in the Bear River City, Utah, paper products plant e. Scents and fragrances used in making soaps and detergents f. Wages of production line employees at the Pineville, Louisiana, soap and detergent plant g. Depreciation on assembly line in the Mehoopany, Pennsylvania, paper products plant h. Packaging materials i. Resins for body wash products j. Depreciation on the Auburn, Maine, manufacturing plant
Essay
Answer:
arrow
Direct materials, direct labor, and factory overhead Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for an automobile manufacturer: a. Wages of employees that operate painting equipment b. Wages of the plant supervisor c. Steel d. Oil used for assembly line machinery Identify the following costs as direct materials (DM), direct labor (DL), or factory overhead (FO) for a magazine publisher: a. Staples used to bind magazines b. Wages of printing machine employees c. Maintenance on printing machines d. Paper used in the magazine
Essay
Answer:
arrow
Classifying costs The following is a list of costs incurred by several businesses: a. Cost of fabric used by clothing manufacturer b. Maintenance and repair costs for factory equipment c. Rent for a warehouse used to store work in process and finished products d. Wages of production quality control personnel e. Oil lubricants for factory plant and equipment f. Depreciation of robot used to assemble a product g. Travel costs of marketing executives to annual sales meeting h. Depreciation of copying machines used by the Marketing Department i. Fees charged by collection agency on past-due customer accounts j. Electricity used to operate factory machinery k. Maintenance costs for factory equipment l. Pens, paper, and other supplies used by the Accounting Department in preparing various managerial reports m. Charitable contribution to United Fund n. Depreciation of microcomputers used in the factory to coordinate and monitor the production schedules o. Fees paid to lawn service for office grounds upkeep p. Cost of sewing machine needles used by a shirt manufacturer q. Cost of plastic for a telephone being manufactured r. Telephone charges by president's office s. Cost of 30-second television commercial t. Surgeon's fee for heart bypass surgery u. Depreciation of tools used in production v. Wages of a machine operator on the production line w. Salary of the vice president of manufacturing operations x. Factory janitorial supplies Instructions Classify each of the preceding costs as a product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer, placing an "X" in the appropriate column: img
Essay
Answer:
arrow
Classifying costs The following is a list of costs incurred by several businesses: a. Salary of quality control supervisor b. Packing supplies for products sold. These supplies are a very small portion of the total cost of the product. c. Factory operating supplies d. Depreciation of factory equipment e. Hourly wages of warehouse laborers f. Wages of company controller's secretary g. Maintenance and repair costs for factory equipment h. Paper used by commercial printer i. Entertainment expenses for sales representatives j. Protective glasses for factory machine operators k. Sales commissions l. Cost of hogs for meat processor m. Cost of telephone operators for a toll-free hotline to help customers operate products n. Hard drives for a microcomputer manufacturer o. Lumber used by furniture manufacturer p. Wages of a machine operator on the production line q. First-aid supplies for factory workers r. Tires for an automobile manufacturer s. Paper used by Computer Department in processing various managerial reports t. Seed for grain farmer u. Health insurance premiums paid for factory workers v. Costs of operating a research laboratory w. Costs for television advertisement x. Executive bonus for vice president of marketing Instructions Classify each of the preceding costs as a product cost or period cost. Indicate whether each product cost is a direct materials cost, a direct labor cost, or a factory overhead cost. Indicate whether each period cost is a selling expense or an administrative expense. Use the following tabular headings for preparing your answer. Place an "X" in the appropriate column. img
Essay
Answer:
arrow
Managerial accounting in the management process For each of the following managers, describe how managerial accounting could be used to satisfy strategic or operational objectives: 1. The vice president of the Information Systems Division of a bank. 2. A hospital administrator. 3. The chief executive officer of a food company. The food company is divided into three divisions: Nonalcoholic Beverages, Snack Foods, and Fast Food Restaurants. 4. The manager of the local campus copy shop.
Essay
Answer:
arrow
What manufacturing cost term is used to describe the cost of materials that are an integral part of the manufactured end product?
Essay
Answer:
arrow
Classifying costs as factory overhead Which of the following items are properly classified as part of factory overhead for Ford Motor Company , a maker of heavy automobiles and trucks? a. Plant manager's salary at Buffalo, New York, stamping plant, which manufactures auto and truck subassemblies b. Depreciation on Flat Rock, Michigan, assembly plant c. Dividends paid to shareholders d. Machine lubricant used to maintain the assembly line at the Louisville, Kentucky, assembly plant e. Leather to be used on vehicles that have leather interiors f. Depreciation on mechanical robots used on the assembly line g. Consultant fees for a study of production line efficiency h. Dealership sales incentives i. Vice president of human resources's salary j. Property taxes on the Detriot, Michigan, headquarters building
Essay
Answer:
arrow
Prime and conversion costs Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for an automobile manufacturer: a. Wages of employees that operate painting equipment b. Wages of the plant manager c. Steel d. Oil used for assembly line machinery Identify the following costs as a prime cost (P), conversion cost (C), or both (B) for a magazine publisher: a. Paper used for the magazine b. Wages of printing machine employees c. Glue used to bind magazine d. Maintenance on printing machines
Essay
Answer:
arrow
Cost classifications for a service company A partial list of Foothills Medical Center's costs follows: a. Cost of patient meals b. Nurses' salaries c. Depreciation of X-ray equipment d. Utility costs of the hospital e. Salary of intensive care personnel f. Cost of X-ray test g. Operating room supplies used on patients (catheters, sutures, etc.) h. Salary of the nutritionist i. General maintenance of the hospital j. Cost of new heart wing k. Cost of drugs used for patients l. Cost of advertising hospital services on television m. Cost of improvements on the employee parking lot n. Cost of intravenous solutions used for patients o. Training costs for nurses p. Cost of laundry services for operating room personnel q. Doctor's fee r. Overtime incurred in the Patient Records Department due to a computer failure s. Cost of blood tests t. Cost of maintaining the staff and visitors' cafeteria u. Depreciation on patient rooms Instructions 1. What would be Foothills Medical Center's most logical definition for the final cost object? 2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the patient as the cost object.
Essay
Answer:
arrow
Cost classifications for a service company A partial list of The Grand Hotel's costs follows: a. Cost to mail a customer survey b. Wages of convention setup employees c. Pay-per-view movie rental costs (in rooms) d. Cost of food e. Cost of room mini-bar supplies f. Training for hotel restaurant servers g. Cost to paint lobby h. Cost of laundering towels and bedding i. Champagne for guests j. Salary of the hotel manager k. Depreciation of the hotel l. Cost of valet parking m. Wages of bellhops n. Cost to replace lobby furniture o. Cost of advertising in local newspaper p. Wages of desk clerks q. Wages of maids r. Cost of new carpeting s. Guest room telephone costs for long-distance calls t. Cost of soaps and shampoos for rooms u. Utility cost v. Wages of kitchen employees w. General maintenance supplies Instructions 1. What would be The Grand Hotel's most logical definition for the final cost object? 2. Identify whether each of the costs is to be classified as direct or indirect. For purposes of classifying each cost as direct or indirect, use the hotel guest as the cost object.
Essay
Answer:
arrow
Classifying costs Geek Chic Company provides computer repair services for the community. Obie Won's computer was not working, and he called Geek Chic for a home repair visit. Geek Chic Company's technician arrived at 2:00 P.M. to begin work. By 4:00 P.M. the problem was diagnosed as a failed circuit board. Unfortunately, the technician did not have a new circuit board in the truck because the technician's previous customer had the same problem, and a board was used on that visit. Replacement boards were available back at Geek Chic Company's shop. Therefore, the technician drove back to the shop to retrieve a replacement board. From 4:00 to 5:00 P.M., Geek Chic Company's technician drove the round trip to retrieve the replacement board from the shop. At 5:00 P.M. the technician was back on the job at Obie's home. The replacement procedure is somewhat complex because a variety of tests must be performed once the board is installed. The job was completed at 6:00 P.M. Obie's repair bill showed the following: img Obie was surprised at the size of the bill and asked for some greater detail supporting the calculations. Geek Chic Company responded with the following explanations: img The labor charge per hour is detailed as follows: img Further explanations in the differences in the hourly rates are as follows: img img 1. If you were in Obie's position, how would you respond to the bill? Are there parts of the bill that appear incorrect to you? If so, what argument would you employ to convince Geek Chic Company that the bill is too high? 2. Use the headings that follow to construct a table. Fill in the table by first listing the costs identified in the activity in the left-hand column. For each cost, place a check mark in the appropriate column identifying the correct cost classification. Assume that each service call is a job.
Essay
Answer:
arrow
Distinguish between prime costs and conversion costs.
Essay
Answer:
Showing 1 - 20 of 49
Next Quiz