Management Accounting - Study Mode
[#366] Fishbone diagram is an example of
Correct Answer
(B) cause and effect diagram
Explanation
Solution: Fishbone diagram is an example of cause and effect diagram. It is a more structured approach than some other tools available for brainstorming causes of a problem (e.g., the Five Whys tool). The problem or effect is displayed at the head or mouth of the fish.
[#367] Incurred costs to exclude production of goods, that do not meet specification, are called
Correct Answer
(B) prevention costs
Explanation
Solution: Incurred costs to exclude production of goods, that do not meet specification, are called prevention costs. Preventive costs are any expenditures incurred that are intended to minimize the number of defects in products and services.
[#368] Number of employees who left company, divided by average number of employees to calculate ratio is called
Correct Answer
(A) employee turnover ratio
Explanation
Solution: Number of employees who left company, divided by average number of employees to calculate ratio is called employee turnover ratio. Employee turnover rate is calculated by dividing the number of employees who left the company by the average number of employees in a certain period in time.
[#369] Revenues are subtracted from cost of direct materials of sold goods is to calculate
Correct Answer
(A) throughout contribution
Explanation
Solution: Revenues are subtracted from cost of direct materials of sold goods is to calculate throughout contribution.
[#370] Carrying costs of inventories and price discounts related to delayed deliveries are examples of
Correct Answer
(D) financial measures
Explanation
Solution: Carrying costs of inventories and price discounts related to delayed deliveries are examples of financial measures. Financial measures or financial ratios are often used as very simple mechanisms to describe the performance of a business or investment.