Exam 18: Managerial Accounting Concepts and Principles

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.

Newly completed units are combined with beginning finished goods inventory to make up total ending goods in process inventory.

The raw materials turnover is raw materials purchased divided by the average raw materials inventory.

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it,and estimates and projections are acceptable.

Match the following terms to the appropriate definitions. -A system that acquires inventory and produces only when needed.

Last year,Smith Company sold 10,000 units of its only product.If sales increase by 15% in the current year,how will unit variable cost and unit fixed cost be affected?

Which of the following is never included in direct materials costs?

Which of the following items represents a difference between financial and managerial accounting?

A company's prime costs total $4,500,000 and its conversion costs total $5,500,000.If direct materials are $2,000,000,calculate the overhead costs:

Benny,an employee of Parrott Company,used company assets for his own personal gain.This is an example of

Match the following terms to the appropriate definitions. -An approach that aids continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance along the four dimensions of (1.financial,(2.customer,(3.internal business processes; (4.learning and growth.

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

What does the days' sales in raw materials inventory ratio reveal?

Choosing to outsource a component of a product or manufacture it internally is an example of a(n):

Match the following terms to the appropriate definitions. -Expenditures directly associated with the manufacture of finished goods; includes direct materials and direct labor.

All of the following statements regarding manufacturing costs are true except:

For each of the characteristics below,identify whether it is a focus of financial accounting or managerial accounting.Use the letter F to identify financial accounting and M to identify managerial accounting. _____ 1. Users are generally managers,employees and decision makers internal to the organization. _____ 2. Used to assist managers in making planning and control decisions. _____ 3. Information is structured and controlled by GAAP. _____ 4. Information is available quickly without the need to wait for an audit. _____ 5. Information is mainly historical with some predictions. _____ 6. Emphasis of the information is on the whole organization. _____ 7. Information is mostly monetary,but includes nonmonetary information.

Control is the process of setting goals and determining ways to achieve them.

A management concept that applies quality improvement to all aspects of business activities is called:

The total cost of goods completed during the accounting period for a manufacturer is called: