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Study Resources (Accounting)

21) Conversion costs are all manufacturing costs other than direct materials. 22) Overtime premium is always a component of direct labour. 23) Products, services, departments, and customers may be cost objects. 24) Costs are accounted for in two basic stages: assignment followed by accumulation. 25) A cost object is always either a.
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11) What is the essential characteristic that distinguishes an error correction from a change in estimate? 12) The discussion in IAS 16 paragraphs 60-62 indicates that a change in depreciation method is usually a change in accounting estimate. Explain the logic behind why a change in depreciation method is normally considered.
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  1.1   Explain how management accounting data are essential to the process of rational operating and strategic decision making. 1) Management accounting is guided by generally accepted accounting principles. 2) Managerial accounting and cost accounting both measure and report financial and non-financial information relating to the cost of acquiring or utilizing resources. 3) Cost.
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9) On December 15, 2017, The Bay Company factored $1,600,000 of accounts receivable for proceeds of $1,500,000. The company recorded the transaction as being without recourse, with $100,000 recorded to interest expense. During the preparation of the financial statements dated December 31, 2018, staff concluded that the factoring arrangement should.
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35) Hardcover Company incurs the following costs when it manufactures books. 1.Cost of customer order forms. 2.Cost of paper used in manufacture of books. 3.Cost of paper used in packing cartons to ship books. 4.Cost of paper used in display at national trade show. 5.Amortization of delivery trucks. 6.Amortization of the wood used in the manufacturing.
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28) Stretton Company Limited, a private company, was started on January 1, 2018. For the first year, the chief accountant prepared the financial statements and a local accountant completed the necessary review of these statements. However, for the year ended December 31, 2019, an external auditor was appointed. The income.
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5) ABC Inc.'s policy is to report all cash flows arising from interest and dividends in the operating activities section. Tub Time's activities for the year ended December 31, 2017 included the following: ?Net income after taxes totaled $400,000. ?The company recorded a $4000 goodwill impairment loss during the year. ?Depreciation expense for.
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16) The person(s) responsible for providing advice and assistance to line managers is/are A) the controller. B) the chief financial officer. C) staff management. D) the treasurer. E) the president. 17) Staff management includes A) manufacturing managers. B) human-resource managers. C) purchasing managers. D) distribution managers. E) sales persons. 18) The ________ is primarily responsible for the quality.
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20.2   Learning Objective 2 1) For the following accounting changes, identify the appropriate treatment under IFRS. Type of Accounting Change Accounting Treatment Change in estimate Change in accounting policy Correction of an error 2) Define the term "prospective adjustment" and which type of accounting changes is it applied to? 3) For a company using the straight-line method of.
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34) Briefly explain the planning and control activities in management accounting. How are these two activities linked to each other? 35) Complete a performance report for the month of May, 2012, for the Daily Bulletin, a regional newspaper. Use four columns: 1) Actual Result; 2) Budgeted Amount; 3) Difference: Actual.
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23) Grant Pharmaceuticals Ltd. undertook a research and development project in 2017. As of May 1 of that year, management concluded that the project had met the requirements for the capitalization of development costs. For the remainder of 2017 and 2018, the company capitalized $9.9 million of development costs for.
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29) Customer relationship management initiatives use technology to coordinate all A) production activities. B) research activities. C) customer-facing activities. D) inventory management activities. E) aspects of strategy implementation. 30) ________ describe(s) the flow of goods, services, and information from the purchase of materials to the delivery of products to consumers, regardless of whether those activities occur.
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8) Evaluate each of the following independent situations to determine the type of accounting change (correction of error, change in accounting policy, or change in estimate) and the appropriate accounting treatment (retrospective or prospective). Situation Type of Change Treat -ment Explana -tion A A new consumer protection law comes into effect, giving buyers of electronic products a guarantee.
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7) Rusabh Ltd.'s policy is to report all cash flows arising from interest and dividends in the operating section. Rusabh's activities for the year ended December 31, 2018 included the following: ?Sold a held-for-trading investment for $16,000. The book value of this investment, which was not designated as a cash equivalent,.
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37) Customers are demanding that companies use the value chain and supply chain to deliver ever-improving levels of performance regarding key success factors. Briefly describe each of the following key success factors: cost and efficiency; quality; time; innovation. For each key success factor give an example an activity that relates.
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30) Generally, companies follow one of two broad strategies: offering a quality product at a low price, or offering a unique product or service priced higher than the competition. Is it possible to follow a strategy that is "in the middle"? 1.2   Explain how business functions help management accountants organize.
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41) Which statement about conversion costs is correct, using the three-part classification of costs? A) They include only direct manufacturing labour costs. B) They include only indirect manufacturing costs. C) They include both direct manufacturing labour costs and manufacturing overhead costs. D) They include indirect manufacturing labour costs but not manufacturing overhead costs. E) They.
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3) Reuse It Inc.'s (RII) policy is to report all cash flows arising from interest and dividends in the operating section. The company's activities for the year ended December 31, 2018 included the following: ?Comprehensive income totaled $468,000 including $88,000 in other comprehensive income. ?Paid a cash dividend of $30,000 that was.
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6) A cost concept used for external reporting purposes may not be appropriate for internal, routine reporting to managers. 7) The method recommended for a management accountant in dealing with a resource-allocation decision is A) management by exception. B) total value chain analysis. C) analysis based on feedback. D) the variance analysis approach. E) the.
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11) Victory Welding Company overhauled a printing press for Helman's Printing Ltd. For the services completed on March 31, 2018, Victory received a promissory note for $350,000 due and payable on March 31, 2019. Helman's paid the amount as scheduled. Victory staff recorded the full amount as revenue on March.
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28) Six uses of feedback are given below. Match each independent statement with one of the feedback uses. Uses of feedback: a.Changing goals. b.Changing how decision alternatives are identified. c.Changing managers. d.Changing the range of information collected in order to make predictions. e.Changing how the company operates. f.Changing reward systems. Independent Statements: 1.Quality control activities have been moved from.
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21) Enterprise Resource Planning software (ERP) A) integrates data and provide managers with reports that highlight the interdependence of different business activities. B) facilitates "Easy Reporting for Proposals." C) provides financial reports for each separate enterprise in a conglomerate. D) is used only by plant managers to create "Exceptional Reports for Production." E) is free.
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20.1   Learning Objective 1 1) Which of the following is a change in policy? A) Inventory was sold below carrying amount even though the inventory had been previously written down to lower of cost and net realizable value. B) A company changes from the cost model to the revaluation model of measuring the.
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19) Canlan Inc. is a subsidiary of a Canadian publicly traded manufacturer of construction materials. The company uses the first-in, first-out (FIFO) cost flow assumption. a. An invoice for $55,000 of material received and used in production arrived after the year-end. Neither the purchase nor the accounts payable was recorded until.
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11) Corporate governance A) relates to the role of the corporate governor. B) comprises activities undertaken to ensure legal compliance with laws. C) is legislated by the federal government. D) relates only to the regulations provided by the Canadian Securities Administrators. E) is a voluntary system of compliance approved by each company's board of.
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1.5   Distinguish among corporate governance, professional codes of conduct, ethics, and corporate social responsibility. 1) An accountant, as a member of a professional organization, must follow only those ethical requirements as are prescribed by the organization they belong to, such as the Society of Management Accountants of Canada. 2) CMAs are required.
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21) ________ includes reporting and interpreting information that helps managers to focus on operating problems, imperfections, inefficiencies, and opportunities. A) Scorekeeping B) Control C) Problem-solving D) Planning E) Budgeting 22) Measuring and evaluating performance, and providing feedback are aspects of A) scorekeeping. B) information gathering. C) problem identification. D) record keeping. E) control. 23) Preparation of a monthly report comparing the actual.
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9) Boboto Inc.'s policy is to report all cash flows arising from interest and dividends in the operating section. Boboto's activities for the year ended December 31, 2018 included the following: ?Declared and issued a stock dividend valued at $50,000. ?Paid $46,000 to repurchase ordinary shares and cancelled them. The book value.
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2.1   Identify and distinguish between two manufacturing cost classification systems: direct and indirect, prime and conversion. 1) "Cost" is defined by accountants as a resource sacrificed or foregone to achieve a specific objective. 2) Costs of Sales is another way of phrasing Cost of Goods Sold. 3) An actual cost is a predicted.
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30) For each type of report listed below, identify one planning decision and one control decision for which the information would be helpful. Item: a.annual financial statements for the past three years b.report detailing sales by department by each hour of the day for the past week c.special study regarding increased road traffic due.
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1.3   Identify the five steps of decision making and the role of relevant accounting information. 1) Planning is choosing goals, predicting results under various alternative ways of achieving those goals, and then deciding how to attain the desired goals. 2) A bonus paid to high performing sales persons is an example of.
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19) Developing a new web site to display and demonstrate the company's products would be part of which value chain function? A) research and development B) design of products, services, and processes C) production D) marketing E) distribution 20) Companies use the term customer relationship management (CRM) to describe A) a strategy that integrates people and.
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19.6   Comprehensive Question 1) Prepare the Statement of Cash Flows for Renoir Art Gallery Ltd for the year ended December 31, 2018 using the indirect method from the following income statement, comparative balance sheets and supplemental information: Supplemental information: -The decrease in bonds payable is due entirely to the amortization of the related.
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11) Reuse It Inc.'s activities for the year ended December 31, 2016 included the following: ?Comprehensive income totaled $468,000 including $88,000 in other comprehensive income. ?Paid a cash dividend of $30,000 that was declared in 2015. ?Interest expense for the year was $14,000; the opening and closing balances in the interest payable account.
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20.3   Learning Objective 3 1) Why are retrospective adjustments to past years' income and expenses recorded directly in retained earnings? 2) Zyler Company is analyzing its accounts receivable for purposes of preparing its financial report for the year ended December 31, 2017. The company uses the aging method to estimate bad debts..
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11) Understanding the reasons for any difference between actual results and budgeted amounts is an important aspect of A) extended value-chain analysis. B) forecasting for the next accounting period. C) kaizen management. D) control. E) management by perception. 12) Which of the following is a major benefit of utilizing a budgeting system? A) It always results in.
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11) A firm's strategy and mission are usually the same. 12) Governance refers to a company's relationship with all levels of government. 13) A value proposition is a distinct benefit for which customers will pay. 14) Rent for the building that contains the manufacturing and engineering departments can all be charged as.
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5) For the following types of accounting changes, identify the relevant criteria for each accounting change by selecting "yes," "no," or "n/a" (not applicable). Type of Accounting Change Accounting Change due to Management Choice? Information known (or should have been known) in prior period? Change in estimate Yes No N/A Yes No N/A Change in accounting policy Yes No N/A Yes No N/A Correction of error Yes No N/A Yes No N/A   6) Which of.
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31) Which of the following is an indirect production cost? A) materials placed into production B) calibrating factory equipment C) labour placed into production D) cost of shipping a product to the customer E) advertising 32) Actual costs are defined as A) costs incurred. B) direct costs. C) indirect costs. D) predicted costs. E) sunk costs. 33) Whether a company traces costs.
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15) CBC Biomedical undertook a research and development project in 2016. As of March 1 of that year, management concluded that the project had met the requirements for the capitalization of development costs. For the remainder of 2016 and 2017, the company capitalized $4.3 million of development costs for the.
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13) Albacore Sailboats manufactures small sailing dingies. In 2019, the company's accountant recorded the following costs into the inventory account: Variable costs (raw materials, labour, variable overhead) 11,098,000 Fixed manufacturing overhead 3,000,000 Salary of factory manager 100,000 Shipping to customer 350,000 Commission on sales 550,000 Total 15,098,000 The company had no work in process at the end of both 2018 and 2019. Finished.
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