Qusetion 1 : Management Accounting Terminology

Match the following terms with the best descriptions. Each description is used only once.

Terms

1.Ethics

2.Mission

3.Controlling

4.Goal

5.Cost driver

6.Quality

7.Balance statement

8.Income statement

9.Strategic cost management

10.Financial accounting

11.Activity cost driver

12.Structural cost driver

13.Managerial accounting

14.Resources

15.Product differentiation

Description

a. Making decisions concerning specific cost drivers

b. Factors that influence costs

c. Reports a company's financial position

d. Accounting for external users

e. Increase year 2017 sales by 10 percent over year 2016 sales

f. Shows the results of operations for a period time

g. Packing an order for shipment

h. Deciding to limit market focus to a region rather than the entire nation

i. The degree to which a new e-book reader meets a buyer's expectations

j. Used internally to make decisions

k. Consumed by activities

l. The propriety of taking some action

m. Reduces customer price sensitivity

n. Basic purpose toward which activities are directed

0. Comparing the budget with the actual results

Question 2: Financial and Managerial Accounting

Indicate whether each phrase is more descriptive of financial accounting or managerial accounting.

aMay be subjective

bOften used to state corporate goals

cTypically prepared quarterly or annually

dMay measure time or customer satisfaction

eFuture oriented

fHas a greater emphasis on cost-benefit analysis

gKeeps records of assets and liabilities

hHighly aggregated statements

iMust conform to external standards

jSpecial-purpose reports

kDecision-making tool

lIncome statement, balance sheet, and statement of cash flows

Question 3: Activities and Cost Drivers

For each of the following activities, select the most appropriate cost driver. Each cost driver may be used only once.

Activity

1.Pay vendors

2.Receive material deliveries

3.Inspect raw materials

4.Plan for purchases of raw materials

5.Packaging

6.Supervision

7.Employee training

8.Operating machines

9.Machine maintenance

10.Opening accounts at a bank

Cost Driver

a.Number of different raw material items

b.Number of classes offered

c.Number of machine hours

d.Number of employees

e.Number of maintenance hours

f.Number of units of raw materials received

g.Number of new customers

h.Number of deliveries

i.Number of checks issued

j.Number of customer orders