Question 1

The purpose of the conversion process is to transform material, labor and overhead into a finished product.To accomplish that purpose, organizations can use one of three systems.Which of the following pairs includes examples of products that would use the same system?

Accepted Answer

Decks of playing cards and compact discs are typically produced in large quantities using a continuous or mass production system, unlike made-to-order smoothies which are produced using a job order production system tailored to individual orders.

Question 2

The conversion process involves three common resources: material, direct labor and overhead.Which of the following is an example of overhead in that context?

Accepted Answer

Depreciation on factory equipment is considered an overhead cost because it is a necessary expense for maintaining the production facilities but is not directly tied to the production of any specific product. The CFO's salary, while an indirect cost, is not typically categorized under manufacturing overhead, as it does not directly relate to the manufacturing process.

Question 3

Which of the following internal controls could be applied to processing payroll transactions in the human resources process?

Accepted Answer

Both outsourcing and use of information technology can be applied as internal controls in processing payroll transactions in the human resources process. Outsourcing can provide an independent review of the payroll process, while the use of information technology can automate the process, reducing the risk of errors and unauthorized transactions.

Question 4

Accounting information systems have five generic elements.Which of the following includes two examples of the same element?

Accepted Answer

The two examples in choice B (Form W-2 and Form 1099) both represent the element of "output" in an accounting information system. Form W-2 is an output that provides information to employees about their wages and taxes withheld, while Form 1099 is an output that provides information to independent contractors and other non-employees about their income from a company. Form W-4 and Form W-2 (choice A) represent the element of "input" in an accounting information system, while Form W-4 and Form 1099 (choice C) represent the elements of "input" and "output", respectively. Choice D is incorrect because not all of the elements are represented by all of the choices.

Question 5

The conversion process involves three common resources: material, direct labor and overhead.Which of the following is an example of material in that context?

Accepted Answer

The answer of The conversion process involves three common resources:...

Question 6

Accounting information systems have five basic elements.Which of the following is an output of the human resources process?

Accepted Answer

The answer of Accounting information systems have five basic elements.Which...

Question 7

CGI Corporation uses a process costing system to manufacture its product.Which of the following internal controls should CGI use to ensure its human resources employees correctly apply federal laws related to employee performance evaluation?

Accepted Answer

The answer of CGI Corporation uses a process costing system...

Question 8

The purpose of the conversion process is to transform material, labor and overhead into a finished product.Which system would an organization that manufactures decks of playing cards use for that purpose?

Accepted Answer

A process costing system is appropriate for organizations that produce large volumes of identical or similar products, such as playing cards. This system tracks costs by department or process, rather than by individual job or product.

Question 9

The purpose of the conversion process is to transform material, labor and overhead into a finished product.To accomplish that purpose, organizations can use one of three systems.Which of the following pairs includes examples of products that would use different systems?

Accepted Answer

Decks of playing cards and compact discs are both examples of products that can be produced using the same system (such as a continuous flow or continuous process system). Custom-built homes and original works of art would likely require a job order system, where each unit is customized to the customer's specifications. Plastic bottles and aluminum cans could both be produced using a batch production system. However, made-to-order smoothies would require a flexible production system to accommodate varying customer orders. Compact discs and made-to-order smoothies are therefore examples of products that would use different systems.

Question 10

The purpose of the conversion process is to transform raw materials into finished products with:

Accepted Answer

The conversion process involves the use of both direct labor and overhead to transform raw materials into finished products. Direct labor refers to the labor costs involved in producing the goods, while overhead includes all other indirect costs such as rent, utilities, and equipment depreciation. Therefore, the best choice is C.

Question 11

Accounting information systems have five basic elements.Which of the following would be associated with the human resource process?

Accepted Answer

Both payroll transactions and performance evaluations are associated with the human resource process. Payroll transactions involve the payment of employees, which is a key function of human resources. Performance evaluations are a way for human resources to assess the performance of employees and make decisions about promotions, salary increases, and terminations. Both of these activities involve the use of accounting information systems to track and process transactions.

Question 12

Accounting information systems have five basic elements.Within the context of the human resource process, "inputs" include:

Accepted Answer

Job applications and payroll-related data are both inputs to the human resource process within the context of accounting information systems. Job applications provide information about potential employees, while payroll-related data provides information about current employees such as their salaries and benefits. Both types of data are essential for managing human resources effectively.

Question 13

The purpose of the conversion process is to transform material, labor and overhead into a finished product.To accomplish that purpose, organizations can use one of three systems.Which of the following best pairs a system with products that would be appropriately manufactured using it?

Accepted Answer

The process manufacturing system is best suited for products like decks of playing cards and compact discs because it involves the continuous production of items in bulk, where each unit is indistinguishable from the next. This system is efficient for manufacturing standardized products in large volumes.

Question 14

Accounting information systems have five basic elements.Which of the following is an internal control associated with the human resources process?

Accepted Answer

Adequate supervision and procedures manuals are both internal control measures associated with the human resources process. Adequate supervision ensures that employees are following established procedures and helps prevent fraud or errors. Procedures manuals provide clear guidelines and instructions for various HR processes, reducing the risk of mistakes or inconsistencies. By implementing both measures, a company can strengthen its internal controls and ensure accurate and reliable HR data.

Question 15

CGI Corporation uses a process costing system to manufacture its product.As part of the processing activities in its human resource process, which of the following would CGI use to record payroll costs of its factory workers?

Accepted Answer

In a process costing system, the payroll costs of factory workers are allocated to the Work in Process (WIP) account. The correct entry to record this would be to debit the WIP account, which represents the cost of unfinished goods. The credit would be the Wages Payable account, which represents the amount owed to employees for their work during the pay period. Therefore, the correct option is A) Debit work in process, credit wages payable.

Option B is incorrect because it debits the wages expense, which is not accurate since expenses are recorded when they are incurred, not when they are paid. Option C is incorrect because it shows a payment of wages, but does not allocate the costs to the production process. Option D is incorrect because it credits Retained Earnings, which is a stockholder's equity account and not related to the payroll costs of factory workers.

Question 16

The purpose of the conversion process is to transform material, labor and overhead into a finished product.Which system would an organization that manufactures unique pieces of jewelry use for that purpose?

Accepted Answer

Since the organization is manufacturing unique pieces of jewelry, each job would have specific and unique requirements for materials and labor. Therefore, a job order system would be the best choice for tracking the cost of each job separately.

Question 17

The purpose of the conversion process is to transform material, labor and overhead into a finished product.To accomplish that purpose, organizations can use one of three systems.Which of the following pairs would be accounted for using a job costing system?

Accepted Answer

Job costing system is suitable for items that are unique and customized based on specific customer requirements, such as custom-built homes and original works of art.

Question 18

Which of the following internal controls could be applied to the creation of Form W-2 in the human resources process?

Accepted Answer

The use of information technology can ensure that the Form W-2 is accurately and securely created and distributed, reducing the risks of errors and fraud. Internal audits can verify the accuracy and completeness of the information contained in the forms, ensuring compliance with legal and regulatory requirements. Therefore, both controls can increase the reliability and effectiveness of the HR process for creating and distributing Form W-2.

Question 19

The purpose of an organization's conversion process is:

Accepted Answer

The purpose of an organization's conversion process is to transform raw materials into finished products. This process involves various stages, such as manufacturing, assembly, and packaging, to convert the raw materials into a finished product that can be sold to customers. Process costing is a separate concept that involves assigning costs to each production step. Therefore, option B and C are not correct. Option D is also not correct, as the purpose of the conversion process is to transform raw materials into finished products.

Question 20

CGI Corporation requires new employees to establish their payroll withholding information for its human resources process; CGI reports year-end information for tax purposes electronically to its employees.Which of the following pieces of information is both an input for the former and an output of the latter?

Accepted Answer

Employee identification data is both an input for establishing payroll withholding information and an output of the year-end tax reporting process, as it is necessary to identify the employee in both instances.

Quiz 13: Other Business Processes