Exam 15: Introduction to Managerial Accounting

At the beginning of the current year, Grant Company's work in process inventory account had a balance of $30,000. During the year, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead for the year amounted to $90,000. Cost of goods manufactured is $230,000. The balance in work in process inventory on December 31 is

Indirect costs can be specifically traced to a cost object.

Insurance expense incurred on a factory building would be treated as a

Period costs are operating costs that are expensed in the period in which the goods are sold.

Managerial accounting reports are

Match the items below to the type of cost (a-c). -Salespersons' salaries A)Direct B)Indirect C)Neither direct nor indirect

The plant manager's salary in a manufacturing business would be considered an indirect cost.

The functions reporting to the CFO sometimes are grouped together and referred to as corporate finance.

Managerial accounting information includes both historical and estimated data.

Match the items below to the type of cost (a-c). -Utilities on administrative facilities A)Direct B)Indirect C)Neither direct nor indirect

Match each description below to the appropriate phase of the manufacturing process (a-e). -Process by which managers run day-to-day operations A)Planning B)Directing C)Controlling D)Improving E)Decision making

Another term for factory overhead is

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.a.Direct b.Indirect -The production labor wages for the bar stool assemblers

What is decision making? Who is responsible for decision making in a managerial situation?

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

Conversion costs consist of product costs and period costs.

The following are some of the costs incurred by Cupcake Company. Identify them as either: -Frosting A)Prime costs B)Conversion costs C)Both prime and conversion costs D)Neither prime nor conversion costs

Smith Company reports the following information: Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is

Planning is the process of monitoring operating results and comparing actual results with the expected results.

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as