Exam 1: Cost Accounting: Information for Decision Making

The just-in-time (JIT)method of production focuses on

(CMA adapted)Cost drivers are

In 2016,the Merkel Company had revenues of $2,000,000 and costs of $1,500,000.During 2017,Merkel will be introducing a new product line that is expected to increase sales revenue by $200,000 and costs by $160,000.Assuming no changes are expected for the other products,the operating profits are expected to increase by

It is important that the manager assigned to lead a responsibility center be held accountable for its operations.

Administrative functions are notincluded as part of the value chain because they are implicitly included in every business function.

Costs that differ among or between two or more alternative courses of action are

Create a diagram of the value chain by putting the following components into the correct order: a) purchasing; b) marketing and sales; c) research and development; d) customer service; e) distribution; f) design; g) production.

It is more important for financial accounting information to be comparable between firms than to be useful for managerial decision-making.

You have been employed as an entry-level management accountant for a little under a year.You suspect that your immediate supervisor is involved in a significant fraud involving diverting of company assets to personal use.Briefly describe the steps you might take to resolve this dilemma.

Morgantown Manufacturing produces electronic storage devices,and uses the following three-part classification for its manufacturing costs: materials,labor,and support costs.Total support costs for June were $300 million,and were allocated to each product on the basis of labor costs of each line.Summary data (in millions)for June for the most popular electronic storage device,the Giant Watt,was: Material costs \ 9,000,000 Labor costs \ 3,000,000 Support costs \ 8,500,000 Units produced 40,000 a.Compute the manufacturing cost per unit for each product produced in June. b.Suppose production will be reduced to 30,000 units in July.Speculate as to whether the unit costs in July will most likely be higher or lower than unit costs in June;it is not necessary to calculate the exact July unit cost.Briefly explain your reasoning.

Cost accounting information developed for managers to use in making decisions must comply with generally accepted accounting principles (GAAP)and international financial reporting standards (IFRS).

R&D,production,and customer service are business functions that are all included as part

The cost accounting system that minimizes wasteful or unnecessary transaction processes is

Managers are usually responsible for the revenues needed to achieve the targets set during the budgeting process,but not the resources consumed to achieve those targets.

An Enterprise Resource Planning System can best be described as

Cost accounting is an integral part of the ________ function in an organization.

The field of accounting that focuses on the criterion of relevant information rather than comparability of firms is:

If a poor facility layout exists and work-in-process inventory must be moved during the production process,the company is likely to be performing value-added activities.

A management method by which the organization seeks to excel on all dimensions of quality is called

Carley Inc.incurs many types of costs in its operations.Place the number of the appropriate stage in the value chain in Column 2 in the blank next to each cost in column 1. Cost Stage in the Value Chain Transportation costs to ship 1. Customer vans to customers Labor costs for factory workers 2. Distribution Overtime costs for scientists working on new engine technolocy 3. Research \& Dev elopment Utilities cost for the design testing center 4. Marketing Costs to sunvey customers about their satisfaction 5. Production Costs to sponsor a sporting event 6. Design