Exam 1: Introduction to Managerial Accounting

Implementing Total Quality Management (TQM) is part of the ISO 9001:9008 quality standard.

Which of the following report to the audit committee of the Board of Directors?

Which term listed below describes costs incurred when the company detects poor quality goods or services before delivery to the customer?

Professional Accountants in Canada are represented by the Certified Professional Accountants of Canada (CPA Canada) in addition to provincial accounting associations.

The cost of inspection at various stages of production is an example of a(n)

The Sarbanes-Oxley Act was designed to hold corporations accountable for internal control and financial reporting functions.

Recognition of ethical issues that may arise in work to be performed is evidence of Adhering to Integrative Analysis in the CPA Guidelines for Ethical Behaviour.

Which term below best describes the quality cost category for "cost to re-inspect reworked food processors"?

XBRL is essentially a

The primary users of managerial accounting information are internal users such as managers.

Which of the following is one of the four cost categories typically found on a cost of quality report?

Preparing budgets is an example of the management function of

Costs incurred to avoid poor quality goods or services are considered

An example of a prevention cost is the cost of redesigning the product to reduce its complexity.

According to SOX, at least one member of the audit committee should be a financial expert.

Management accountants only advise cross-functional teams because teams consist of employees from R&D, design, production, marketing, distribution, and customer service.

Planning and identifying possible conflicts of interest is an example of ________ in the CPA Guidelines for Ethical Behaviour.

Throughput time is cut when which of the following methods is used?

Having the requisite knowledge to perform certain tasks is an example of ________ in the CPA Guidelines for Ethical Behaviour.

Use the information below to answer the following question(s). Dylan Products has a budget of $1,200,000 in 2015 for prevention costs. If it decides to automate a portion of its prevention activities, it will save $90,000 in variable costs. The new method will require $40,000 in training costs and $150,000 in annual equipment costs. Management is willing to adjust the budget for an amount up to the cost of the new equipment. The budgeted production level is 210,000 units. Appraisal costs for the year are budgeted at $500,000. The new prevention procedures will save appraisal costs of $50,000. Internal failure costs average $20 per failed unit of finished goods. The internal failure rate is expected to be 4% of all completed items. The proposed changes will cut the internal failure rate by one-half. Internal failure units are destroyed. External failure costs average $48 per failed unit. The company's average external failures average 2.5% of units sold. The new proposal will reduce this rate to 1%. Assume all units produced are sold and there are no ending inventories. -Try-Us-First Motors manufactures and sells off-road vehicles. The September sales were $6,000,000. Monthly design costs are $112,000 and rework is running at $75,000 per month. Its painting department is fully automated and requires substantial inspection to keep the machines operating properly. An improperly painted vehicle is very expensive to correct, and inspection hours for the 8,000 vehicles painted in September totaled 2,000 hours by 14 employees, who earn an average of $28 an hour. Ten litres of paint were used on average for each vehicle. The standard amount of paint per vehicle is nine litres. The cost of inspection for September was equal to the budgeted amount of $56,000. What are appraisal costs as a percentage of sales?