Exam 1: Managerial Accounting Concepts and Principles

Braintree Ltd.manufactures coats in a large facility.One area in the production facility is an underused storage space.The company has twice turned down offers to lease out this facility.This situation is an example of what costing concept? How should Braintree handle the costing for this situation?

Costs classified by controllability are useful for:

A _________________ cost contains a combination of fixed and variable costs.

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.

Materials that are used in support of the production process but that do not become a part of the product and are not clearly identified with units or batches of product are called:

Information for Gifford, Inc., as of December 31 follows: Prepare a manufacturing statement for the year ended December 31.

Which of the following items appears only in a manufacturing company's financial statements?

Another title for goods in process inventory is:

The focus of financial accounting is on an organization's projects, processes, and subdivisions, and the focus of managerial accounting is on the whole organization.

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

A manufacturer's cost of goods manufactured is the sum of direct materials, direct labor, and factory overhead costs incurred in producing products.

List the four elements found in all fraud schemes.

Products that are in the process of being manufactured but are not yet complete are called:

____________________ inventory consists of completed products ready for sale by a manufacturer.

The manufacturing statement is also known as ____________________________.

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

Raw materials that physically become part of the product and can be traced to specific units or batches of product are called:

When the attitude of continuous improvement exists throughout an organization, every manager and employee seeks to continuously experiment with new and improved business practices.

The beginning and ending finished goods inventories of a company were $91,000 and $94,000 respectively.If cost of goods sold equaled $800,000, what is the amount of cost of goods manufactured for this period?

Much of managerial accounting is directed at gathering useful information about costs for planning and control decisions.