Exam 18: Introduction to Managerial Accounting

The following are some of the costs incurred by a cake factory. Identify them as either: -Delivery expense

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

Factory overhead includes

For each of the following costs, classify them as either: -Administrative office salaries

Compute conversion costs given the following data: direct materials, $347,500; direct labor, $196,300; factory overhead, $187,900; and selling expenses, $45,290.

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given. -Manufacturing costs for wood and steel used in the bar stools

Which of the following is not a prime cost?

Bartel Corporation produces bar stools for restaurants. For each of the following, indicate whether the cost would typically be considered a direct or indirect cost for the cost object given. -The production labor wages for the bar stool assemblers

Managerial accounting reports must be useful to the user of the information.

Differentiate between a line department and a staff department.

Managerial accounting reports must be prepared according to generally accepted accounting principles.

Sustainability practice focuses on short-term solutions to sustain company profits.

Direct labor costs are included in the conversion costs of a product.

Match the items below for a bakery to the type of cost (a-d). Answers may be used more than once. -Factory rent

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

A staff department or unit is one that provides services, assistance, and advice to the departments with line or other staff responsibilities.

Differentiate between financial and managerial accounting, addressing such issues as users, nature of information, guidelines for preparation, timeliness, and focus of reporting.

The cost of a manufactured product generally consists of direct materials cost, direct labor cost, and factory overhead cost.

Beginning work in process is equal to

The following are costs incurred by a lawn mower manufacturer. Identify them as either: -Wheels