Concept explainers
Match the descriptions that follow with the corresponding terms.
Descriptions:
1. _____ Inventory system in which goods are manufactured or purchased just as they are needed for sale.
2. _____ A method of allocating overhead based on each products use of activities in making the product.
3. _____ Systems that are especially important to firms adopting just-in-time inventory methods.
4. _____ Provides guidelines for companies to describe their sustainable business prac-tices to external parties.
5. _____ Part of the value chain for a manufacturing company.
6. _____ The U.S. economy is trending toward this.
7. _____ A performance-measurement approach that uses both financial and nonfinancial measures, tied to company objectives, to evaluate a company’s operations in an integrated fashion.
8. _____ Requires that top managers certify that the company maintains an adequate system of internal controls.
Terms:
(a) Activity-based costing
(b) Balanced scorecard
(c) Total quality management (TQM)
(d) Research and development, and product design
(e) Service industries
(f) Just-in-time (JIT) inventory
(g) Sarbanes-Oxley Act (SOX)
(h) Global Reporting Initiative
Identify trends in
(LO 4), C
Want to see the full answer?
Check out a sample textbook solutionChapter 1 Solutions
Managerial Accounting: Tools for Business Decision Making 7e Binder Ready Version + WileyPLUS Registration Card
Additional Business Textbook Solutions
Financial Accounting, Student Value Edition (4th Edition)
Intermediate Accounting (2nd Edition)
Horngren's Financial & Managerial Accounting, The Financial Chapters (Book & Access Card)
Horngren's Financial & Managerial Accounting, The Financial Chapters (6th Edition)
Principles of Accounting Volume 2
- Why do companies adopt the LIFO method of inventory costing? Your discussion should include the effects on the income statement and balance sheet.arrow_forwardCan a business change from one inventory costing method to another any time they wish? Explain.arrow_forwardA JIT inventory management system maintains which of the following? a. Goods should be pushed through the system on a fixed schedule based on anticipated demand. b. Goods should be pulled through the system by present demand. c. Total inventory costs are minimized by balancing setup and carrying costs. d. Inventories are needed to avoid stock-out costs.arrow_forward
- Which of the following is an advantage of the periodic inventory system? A. frequent physical inventory counts B. cost prohibitive C. time consuming D. real-time information for managersarrow_forwardFor each of the activities listed, choose the manufacturing concept that applies: (i) just-in-time inventory, (ii) continuous improvement, or (iii) total quality management. A company receives inventory daily based on customer orders. Manufacturing factories have been arranged in such a fashion to reduce inefficiencies. Companies organize customer focus groups in order to look at customer needs and expectations. The entire production process is standardized and written down with procedures. Each customer receives a survey of satisfaction with their product. All orders are complete and shipped within three business days.arrow_forwardWhich of the following describes the economic order quantity (EOQ)? a. It is associated with a pull inventory system. b. It is the heart of a JIT purchasing system. c. It minimizes total ordering and carrying costs. d. It minimizes stock-out costs.arrow_forward
- Abuah Goods manufactures clothing. For each item listed, Identify whether It is a product cost, a period cost, or not an expense. pins to keep materials together while garment Is being manufactured real estate taxes on store advertising expense product inspector wages shirts for sale Chief Financial Officer salary cost of goods soldarrow_forwardDescribe costing inventory using first-in, first-out. Address the different treatment, if any, that must be given for periodic and perpetual inventory updating.arrow_forwardInventory Valuation under Absorption Costing Refer to the data for Judson Company above. Required: 1. How many units are in ending inventory? 2. Using absorption costing, calculate the per-unit product cost. 3. What is the value of ending inventory under absorption costing? Use the following information for Brief Exercises 3-21 and 3-22: During the most recent year, Judson Company had the following data associated with the product it makes:arrow_forward
- Webster Company uses backflush costing to account for its manufacturing costs. The trigger points for recording inventory transactions are the purchase of materials, the completion of products, and the sale of completed products. Required: 1. Prepare journal entries, if needed, to account for the followingtransactions. a. Purchased raw materials on account, 135,000. b. Requisitioned raw materials to production, 135,000. c. Distributed direct labor costs, 20,000. d. Incurred manufacturing overhead costs, 80,000. (Use Various Credits for the credit part of the entry.) e. Cost of products completed, 235,000. f. Completed products sold for 355,000, on account. 2. Prepare any journal entries that would be different from theabove, if the only trigger points were the purchase of materialsand the sale of finished goods.arrow_forwardStatement of cost of goods manufactured and income statement for a manufacturing company The following information is available for Shanika Company for 20Y6: Instructions 1. Prepare the 20Y6 statement of cost of goods manufactured. 2. Prepare the 20Y6 income statement.arrow_forward
- Cornerstones of Financial AccountingAccountingISBN:9781337690881Author:Jay Rich, Jeff JonesPublisher:Cengage LearningPrinciples of Accounting Volume 2AccountingISBN:9781947172609Author:OpenStaxPublisher:OpenStax CollegePrinciples of Cost AccountingAccountingISBN:9781305087408Author:Edward J. Vanderbeck, Maria R. MitchellPublisher:Cengage Learning
- Managerial Accounting: The Cornerstone of Busines...AccountingISBN:9781337115773Author:Maryanne M. Mowen, Don R. Hansen, Dan L. HeitgerPublisher:Cengage LearningIntermediate Financial Management (MindTap Course...FinanceISBN:9781337395083Author:Eugene F. Brigham, Phillip R. DavesPublisher:Cengage Learning