Exam 18: Managerial Accounting Concepts and Principles

Costs that are incurred as part of the manufacturing process but are not clearly associated with specific units of product or batches of production,including all manufacturing costs other than direct material and direct labor costs,are called:

One difference between financial and managerial accounting is that the external users that use financial information must plan a company's future,but the internal users of managerial accounting information generally must decide whether to invest in or lend to a company.

Cost concepts such as variable,fixed,mixed,direct and indirect apply only to manufacturers and not to service companies.

The Goods in Process Inventory account is found only in the ledgers of merchandising companies.

The following cost items relate to the Brock Company.Classify each cost as a variable cost,a fixed cost,or a mixed cost by placing an X in the appropriate column.Each cost should be evaluated in terms of the volume of units of finished products produced.Also indicate with an X for each item if it is a product cost or a period cost.

One of the main differences between the calculation of cost of goods sold for a merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased for the merchandiser,but the manufacturer replaces that with __________________________.

For a manufacturer,the cost of goods sold can be computed by adding the beginning finished goods inventory to ________________________ and then subtracting the ending finished goods inventory.

Managerial accounting is different from financial accounting in that:

What are prime costs? What are conversion costs?

A mixed cost:

Product costs are expenditures necessary and integral to finished products.

The series of activities that add value to a company's products or services is called a value chain.

Which of the following items are management concepts that were created to improve companies' performances?

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.

What are the components of the manufacturing statement? Describe each component.

An employer is unsure if an act by an employee constitutes fraud.What are some of the indications that an employee is involved in a fraud scheme?

The following items for Titus Company are used to compute the cost of goods manufactured and the cost of goods sold.Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added,"-" if the item is to be subtracted,or "0" if the item is not used in the calculation.The first item is completed as an example.

Use the following data to determine the cost of goods manufactured.

Use the following information to prepare the manufacturing statement for Forsythe Company for the month ended June 30.

An _____________________ cost requires the future outlay of cash and is relevant for decision making.