Exam 16: Managerial Accounting Concepts and Principles

In most business organizations, the chief management accountant is called the

For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Depreciation expense-factory

All of the following could be considered a direct material except

Factory overhead includes all manufacturing costs except direct materials and direct labor.

A product cost is

Product costs

Indirect labor would be included in factory overhead.

Match the items below for a bakery to the type of cost a-d). -Factory rent

The Putney Company reports the following information: Sales \ 76,500 Direct materials used 7,300 Depreciati on on factory equipment 4,700 Indirect labor 5,900 Direct labor 10,500 Factory rent 4,200 Factory utilities 1,200 Sales salaries expense 15,600 Office salaries expense 8,900 Indirect materials 1,200 Compute: a) product costs b) period costs

Conversion cost is the combination of direct labor cost and factory overhead cost.

If the cost of a direct material is a small portion of total production cost, it may be classified as part of

Which of the following would be least likely to be considered a managerial accounting report?

A diagram of the operating structure of an organization is called an organization chart.

Manufacturers use machinery and labor to convert direct materials into finished products.

Prime costs are the combination of direct materials and direct labor costs.

Conversion costs are the combination of direct labor, direct material, and factory overhead costs. a. True b. False

A cost object indicates how costs are related or identified.

Which of the following will not be found on the balance sheet of a manufacturing company?

Work in process inventory increased by $20,000 during the current year. Cost of goods manufactured was $180,000. Total manufacturing costs incurred are