BASICS OF ACCOUNTING - SECTION 03 REVIEW QUIZ

What is an example of OVERHEAD?

Your answer is incorrect. A building loan is an example of overhead but there were more examples listed.

Your answer is incorrect. Shipping costs are an example of overhead but there were more examples listed.

Your answer is incorrect. Insurance is an example of overhead but there were more examples listed.

Your answer is incorrect. Income and property tax are examples of overhead but there were more examples listed.

Correct! Building loans, shipping costs, income and property tax, and insurance are all examples of overhead.

When using BALANCED SCORECARDS, what should you do if the actions being measured don't align with the company's mission statement?

Incorrect. Working with you staff to improve their performance is a great idea but it's not how you handle a misaligned measurement with a mission statement.

Correct! If the actions being measured with BALANCED SCORECARDS don't align with the company's mission statement, fix the measurements or fix the mission statement.

Incorrect. Lowering your product prices is not the correct handling when using balanced scorecards.

True or False? MANAGERIAL ACCOUNTING deals with very few details.

Your answer is incorrect. Managerial Accounting deals with many details.

Correct, the statement that MANAGERIAL ACCOUNTING deals with very few details is false! Managerial Accounting deals with many details.