Exam 1: Managerial Accounting Concepts and Principles

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

What term refers to the cost of changing direct materials into a finished manufactured product?

Which of the following is not a characteristic of useful managerial accounting reports?

The controller's staff consists of management accountants responsible for systems and procedures, general accounting, budgets, taxes, and cost accounting.

The following are some of the costs incurred by Cupcake Company.Identify them as either: -Frosting

Period costs include direct materials and direct labor.

Since there are few rules to restrict how an organization chooses to arrange its own internal data for decision making, managerial accounting provides ample opportunity for creativity and change.

Period costs include

Direct costs can be specifically traced to a cost object.

The payment of dividends is an example of a cost.

Which of the following are basic phases of the management process?

Goods that are part way through the manufacturing process, but not yet complete, are referred to as materials inventory.

Which of the following will not be found on the balance sheet of a manufacturing company?

Work in process inventory on December 31 of the current year is $44,000.Work in process inventory increased by 60% during the year.Cost of goods manufactured amounts to $275,000.What are the total manufacturing costs incurred in the current year?

Direct labor and direct materials are

Beginning work in process is equal to

In most business organizations, the chief accountant is called the treasurer.

Factory overhead includes

Davis Manufacturing Company had the following data: Collections on account were $625,000. Cost of goods sold was 68% of sales. Direct materials purchased amounted to $90,000.Factory overhead was 300% of the cost of direct labor. Compute: a Sales revenue all sales were on account b Cost of goods sold c Cost of goods manufactured d Direct labor used e Direct materials incurred f Factory overhead incurred

The cost of wages paid to employees directly involved in the manufacturing process in converting materials into finished products is classified as