ACCT 2170: Chapters 1 & 2

The set of activities that transforms raw resources into the goods and services end users purchase and consume is called the:

• Supply Chain

• Value Chain

• Demand Chain

• Cost-Benefit Analysis

The field of accounting that reports according to generally accepted accounting principles (GAAP) is called:

• Cost Accounting

• Managerial Accounting

• Government Accounting

• Financial Accounting

Having one or more of the firm's activities performed by another firm or individual in the supply or distribution chain is called:

• activity-based costing.

• outsourcing.

• lean accounting.

• responsibility accounting.

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

• cost-benefit analysis.

• cost drivers.

• activity-based costs.

• differential costs.

The Institute of Management Accountants' (IMA) standards of ethical conduct for management accountants includes the elements of: (check all that apply)

• Confidentiality

• Independence

• Integrity

• Credibility

• Competence

The specific unit of an organization that is assigned to a manager who is held accountable for that unit’s operations and resources is known as a:

• Responsibility center.

• cost driver.

• budget.

• nonvalue-added activity.

What element of the value chain is development of new software applications?

• Research and Development

• Marketing

• Design

• Production

What would be the cost driver for the billing department?

• Number of employees.

• Number of invoices.

• Number of customers.

• Number of purchase orders.

What is opportunity cost?

• The excess of operating revenues over operating costs.

• The foregone benefit from the best alternative course of action.

• A cost that is charged against revenue in an accounting period.

• The cost assigned to the products sold during the period.

Which costs are considered prime costs? Check all that apply.

• Manufacturing Overhead.

• Indirect Labor

• Direct Labor

• Direct Materials