Accounting 101
Principles of Accounting II Exam 1 -2010 Version
1-16. Decentralization refers to:
A. reporting for the company as a whole.
B. focusing reporting on parts of the company.
C. the delegation of decision-making authority throughout an organization.
D. differences in organizations.
2-21. Dorra Corporation manufactures lawnmowers in five work stations. Dorra 's weekly demand is 5,000 mowers but Dorra can only produce 4,200. According to the theory of constraints, to increase production output Dorra would benefit the most by concentrating improvement efforts on the:
A. first work station.
B. last work station.
C. largest work station.
D. fastest work station.
E. slowest work station.
3-23. One of the steps in the lean thinking model is to organize work arrangements around the flow of the business process. This is often accomplished by:
A. automating the business process.
B. implementing an enterprise system.
C. instituting a six sigma program.
D. creating a manufacturing cell.
4-18. Managerial accounting:
A. has its primary emphasis on the future.
B. is required by regulatory bodies such as the SEC.
C. focuses on the organization as a whole, rather than on the organization 's segments.
D. Responses a, b, and c are all correct.
5-20. Which of the following IS a characteristic of financial accounting?
A. not mandatory
B. must follow GAAP
C. emphasis on relevance of data, rather than precision
D. both A and C above
6-21. The corporate controller 's salary would be considered a(n):
A. manufacturing cost.
B. product cost.
C. administrative cost.
D. selling expense.
7-22. The costs of direct materials are classified as:
[pic]
A. Choice A
B. Choice B
C. Choice C
D. Choice D
8-24. The three basic elements of manufacturing cost are direct materials, direct labor, and:
A. cost of goods manufactured.
B. cost of goods sold.
C. work in process.
D. manufacturing overhead.
9-26. Which terms below
1-16. Decentralization refers to:
A. reporting for the company as a whole.
B. focusing reporting on parts of the company.
C. the delegation of decision-making authority throughout an organization.
D. differences in organizations.
2-21. Dorra Corporation manufactures lawnmowers in five work stations. Dorra 's weekly demand is 5,000 mowers but Dorra can only produce 4,200. According to the theory of constraints, to increase production output Dorra would benefit the most by concentrating improvement efforts on the:
A. first work station.
B. last work station.
C. largest work station.
D. fastest work station.
E. slowest work station.
3-23. One of the steps in the lean thinking model is to organize work arrangements around the flow of the business process. This is often accomplished by:
A. automating the business process.
B. implementing an enterprise system.
C. instituting a six sigma program.
D. creating a manufacturing cell.
4-18. Managerial accounting:
A. has its primary emphasis on the future.
B. is required by regulatory bodies such as the SEC.
C. focuses on the organization as a whole, rather than on the organization 's segments.
D. Responses a, b, and c are all correct.
5-20. Which of the following IS a characteristic of financial accounting?
A. not mandatory
B. must follow GAAP
C. emphasis on relevance of data, rather than precision
D. both A and C above
6-21. The corporate controller 's salary would be considered a(n):
A. manufacturing cost.
B. product cost.
C. administrative cost.
D. selling expense.
7-22. The costs of direct materials are classified as:
[pic]
A. Choice A
B. Choice B
C. Choice C
D. Choice D
8-24. The three basic elements of manufacturing cost are direct materials, direct labor, and:
A. cost of goods manufactured.
B. cost of goods sold.
C. work in process.
D. manufacturing overhead.
9-26. Which terms below