Mastery exercise

.docx

School

Colorado State University, Fort Collins *

*We aren’t endorsed by this school

Course

300

Subject

Accounting

Date

May 11, 2024

Type

docx

Pages

Uploaded by calisthenicsusa on coursehero.com

Question 1 1 / 1 pts Theresa is the controller for a large privately held corporation. She has recently received her CMA designation, and she was already a CPA. Which ethical standards regarding the integrity of the financial information she handles will apply to her in her current role? I. Sarbanes-Oxley Act II. IMA Statement of Ethical Professional Practice III. AICPA Code of Professional Conduct IV. Corporate Ethics Policy II, III, & IV I, II, III, & IV II & IV I, II, & III Correct! The only one that would not apply would be Sarbanes-Oxley Act because she does not work for a publicly traded company. IMA and AICPA guidance both apply to professionals working in private industry. The company’s ethics policy should always apply to any employee. If there is a conflict among the standards, Theresa should generally follow the highest standards and report the conflict to the appropriate governing body. Question 2 1 / 1 pts Which of the following costs would not be associated as part of the value chain? Cost of a toll-free telephone line for customer inquiries on product use and care Cost of property insurance on the plant Cost of steel for an automobile manufacturing company Advertising expenses related to the rollout of a new product line Correct! Although they are necessary expenses, general operating expenses such as property insurance aren’t usually considered part of the value chain.

Question 3 1 / 1 pts The title of the person within the finance organization who generally has direct responsibility for the financial accounting and managerial accounting is the ________. Chief Executive Officer Chief Finance Officer Controller Treasurer Correct! The Controller is the financial executive primarily responsible for management accounting and financial accounting. Question 4 1 / 1 pts A method of cost assignment where a cost can be associated to the particular cost object in an economically feasible way is called ________. cost allocation cost driver budgeted cost cost tracing Correct! Cost tracing describes the method of assigning direct costs to a particular cost object using documents like material requisition forms. Question 5 1 / 1 pts The formula for computing cost of goods manufactured is ________.

Beginning work in process inventory + manufacturing costs during the year - ending work in process inventory Beginning inventory of finished goods + cost of goods manufactured - ending inventory of finished goods Beginning inventory of materials + purchases of materials during the year - ending inventory of materials Direct materials used + direct labor used + manufacturing overhead costs Correct! Cost of goods manufactured runs through the work-in-process inventory balance sheet account, so the formula for computing cost of goods manufactured is the net change in the work in process inventory account plus manufacturing costs during the year. Question 6 1 / 1 pts SVC Corporation’s total revenue is $5,400,000. Direct materials are $730,000, and direct manufacturing labor is $1,200,000. Variable manufacturing overhead is $400,000, and fixed manufacturing overhead is $580,000. Selling and administrative expenses are $365,000. What is cost of goods sold? $2,125,000 $2,490,000 $2,890,000 $2,525,000 Correct! Revenue - materials - labor - overhead = cost of goods sold. $5,400,000 - $730,000 - $1,200,000 - $400,000 - $580,000 = $2,490,000. Question 7 1 / 1 pts For a manufacturing company, these costs flow through work-in-process and finished goods accounts and are expensed as cost of goods sold.

Your preview ends here

Eager to read complete document? Join bartleby learn and gain access to the full version