Exam 16: Introduction to Managerial Accounting

Managerial accounting focuses on providing information for internal planning and control.

Which of the following represents the combined sum of direct materials costs and direct labor costs?

An Enterprise Resource Planning system (ERP) ________.

Financial statements prepared for investors and creditors often include forward-looking information because they make decisions based on a company's future prospects.

Poodle Grooming Salon provides dog grooming services. In March, the business groomed 245 dogs, earned $10,300 in revenues, and incurred the following operating costs: Grooming Supplies Expense \ 485 Wages Expense 3,260 Utilities Expense 285 Rent Expense 1,200 Depreciation Expense - Equipment 500 Compute the cost of one grooming. (Round to two decimal places.)

Managerial accounting information for a company is primarily used by ________.

Which of the following would be considered a product cost for a manufacturing business?

Which of the following is an example of a period cost for a manufacturing company?

The unit product cost is only part of the information that is needed to determine the sales price for each product.

Identify each cost as a period cost or a product cost. -Wages for the assembly line workers

Castillo Corporation, a manufacturer, reports costs for the year as follows: Direct Materials Used \ 735,000 Wages to Line Workers 510,000 Office Rent 26,000 Indirect Materials Used 700,000 How much is the total period costs for Castillo?

The following format represents the flow of costs for all three manufacturing inventory accounts: Beginning balance + Additions - Ending balance = Amount used, manufactured, or sold

The following information relates to Wagner, Inc.: Advertising Costs \ 10,600 Administrative Salaries 17,600 Delivery Vehicle Depreciation 1300 Factory Repair and Maintenance 200 Indirect Labor 10,500 Indirect Materials 10,000 Manufacturing Equipment Depreciation 1000 Office Rent 51,000 President's Salary 2500 Sales Revenue 530,000 Sales Salary 4700 How much were Wagner's period costs?

Star Health, Inc. is a fitness center in Oklahoma City. In October, the company earned $550,000 in revenues and incurred the following operating costs from 300 customers: Manager's Salary \ 5500 Gym Rent 1800 Depreciation Expense-Equipment 7000 Office Supplies Expense 2300 Utilities Expense 1600 Trainer's Salary 22,500 How much is the unit cost per customer? (Round your answer to the nearest cent.)

Dakota, Inc. is a merchandiser of medallions. The company sold 15,100 units during the year. The company has provided the following information: Sales Revenue \ 558,000 Purchases (excluding Freight In) 280,000 Selling and Administrative Expenses 66,000 Freight In 13,000 Beginning Merchandise Inventory 52,000 Ending Merchandise Inventory 54,900 What is the unit cost per item sold? (Round your answer to the nearest cent.)

For external reporting purposes, GAAP requires companies to treat period costs as assets.

Which of the following is true of Finished Goods Inventory?

Franklin Manufacturing provided the following information for the month ended March 31: Sales Revenue \ 15,000 Beginning Finished Goods Inventory 11,000 Ending Finished Goods Inventory 9500 Cost of Goods Manufactured 19,600 Compute cost of goods sold.

ERP systems can integrate all of a company's functions, departments, and data into a single system.

In a manufacturing company, administrative costs are included in period costs.