Exam 18: Managerial Accounting Concepts and Principles

Manufacturing costs other than direct materials and direct labor,and are not readily traceable to specific units or batches of production are called:

The three major cost components of manufacturing a product are:

Martinez Company makes leather cowboy hats.Each hat requires ½ yard of leather to produce.On December 31,2014,the company had (a)75 hats in Finished Goods Inventory and (b)60 yards of leather at a cost of $12 per yard in Raw Materials Inventory.During 2015,the company purchased 850 more yards of leather at $12 per yard and manufactured 1,600 hats.Determine the unit and dollar amounts of Raw Materials Inventory in leather at December 31,2015.

A _________________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Craigmont Company's direct materials costs are $3,000,000,its direct labor costs total $7,000,000,and its factory overhead costs total $5,000,000.Its prime costs total:

The Langston Company manufactures coats.Costs for February were as follows: Required: Calculate the total manufacturing cost for February.

Materials that are used in manufacturing but are not clearly identified with specific product units are called:

Which of the following is not part of the materials activity in the flow of manufacturing activities?

___________________ is the process of setting goals and making plans to achieve them.

Total manufacturing costs incurred during the year do not include:

The cost of workers who assist in or supervise the manufacturing process,not linked to specific units of product is called:

Period costs are incurred by purchasing merchandise or manufacturing finished goods.

The main goal of the lean business model is the elimination of waste while satisfying the customer and providing a positive return to the company.

Direct costs are incurred for the benefit of more than one cost object.

The process of identifying costs as direct or indirect is referred to as classifying costs by _______________.

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance.

Manufacturers usually have three inventories: raw materials,work in process,and finished goods.

The schedule of cost of goods manufactured is also known as a manufacturing statement.

Although direct labor and raw materials costs are treated as manufacturing costs and therefore make up part of the finished goods inventory cost,factory overhead is charged to expense as it is incurred because it is a period cost.

Prime costs consist of direct labor and factory overhead.