Exam 18: Managerial Accounting Concepts and Principles

The following information pertains to the Frameworks Corporation for May. Calculate the cost of goods sold for the period: Beginning Finished Goods Inventory \ 19,500 Ending Finished Goods Inventory 18,000 Cost of Goods Manufactured 126,80

Last year, Flash Company sold 15,000 units of its only product. If sales decreased by 17% in the current year, how will total variable cost and total fixed cost be affected? Total Variable Cost Total Fixed Cost A)Remains constant Remains constant B)Increases Decreases C)Decreases Remains constant D)Remains constant Decreases E)Remains constant Increases

The balanced scorecard aids in continuous improvement by augmenting financial measures with information on the drivers or indicators of future financial performance.

Which of the following accounts would appear on a schedule of cost of goods manufactured?

Use the following data to determine the cost of goods manufactured: Beginning finished goods inventory \ 10,800 Direct labor 30,600 Beginning work in process inventory 7,200 General and administrative expenses 13,500 Direct materials used 40,500 Ending work in process inventory 9,000 Indirect labor 6,300 Ending finithed goods inventory 9,500 Indirect materials 13,500 Depreciation -factory equipment 7,500

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 investors, creditors, analysts, and regulators. ________ 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 a company's projects, processes, and divisions. ________ 7. Information is mostly monetary, but includes nonmonetary information.

Factory overhead costs may include all of the following except:

A_______________ system means that a company acquires or produces inventory only when needed.

Managerial accounting reports and information are used by external users and financial accounting by internal users.

An internal control system consists of the policies and procedures managers use to do all of the following except:

The focus of managerial accounting information is on the organization as a whole.

Which of the following items does not represent a difference between financial and managerial accounting?

The process of identifying costs as direct or indirect is referred to as classifying costs by________________ .

Walter Products and Sandburg Industries report the following information at December 31: WALTER SANDBURG Accounts Receivable \ 41,000 \ 68,000 Cash 6,000 7,000 Finished Goods Inventory 25,000 Work in Process Inventory 40,000 Merchandise Inventory 48,000 Prepaid Expenses 1,000 2,000 Raw Materials Inventory 21,000 Required: (a) Which company is a manufacturer? Explain. (b) Prepare the Current Asset Section of the Balance Sheet for the manufacturer.

A manufacturer's inventory that is not completely finished is called _________ .

The management concept of customer orientation encourages a company to set up its production system to produce large quantities of the same product for all customers.

A ________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

Identify and describe the three categories of manufacturing costs.

The purpose of managerial accounting information is to help ________ users make decisions while the purpose of financial accounting is to help ________ users make decisions.

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: