Exam 1: Introduction to Managerial Accounting

Budgets are the way that managers can express their

The cost of evaluating potential raw material suppliers is an example of a(n)

Managerial information is always based on historical transactions with external parties.

The decision to bill customers electronically, which saves the company money, would be a positive benefit when performing cost-benefit analysis.

Managerial accounting reports are always prepared on a quarterly and annual basis.

The costs incurred when poor quality goods or services are detected and corrected before delivery to customers are called

Internal failure costs occur when poor-quality goods or services are not detected until after delivery to customers.

Lean production systems keep large inventories.

Lean production systems typically focus on lengthening the manufacturing cycle time.

Which of the following cost items should be classified as an internal failure cost on a cost of quality report?

Anticipation of issues and identification of possible alternatives is evidence of Adhering to Integrative Analysis in the CPA Guidelines for Ethical Behaviour.

Which of the following reports must be audited by an outside agency?

XBRL will be required of both public and private companies.

Which of the following statements is FALSE?

Which term listed below describes costs incurred when the company fails to detect poor quality goods or services?

Lean production systems typically arrange production activities in self-contained cells.

Which of the following describes a system in which suppliers deliver materials at the time they are needed?

Costs incurred to detect poor quality goods and services refer to

What costs are incurred to avoid poor quality goods or services in the first place?

The advantages of XBRL include decreases in the need for manual searches through corporate reports for specific pieces of information as well as facilitating the comparison of companies results to industry averages and to each other.