Exam 18: Introduction to Managerial Accounting

The entire sequence of activities that add value to a company's products and services is called ________.

Bloomington,Inc.is a merchandiser of stone ornaments.The company sold 6,000 units during the year.The company has provided the following information: Sales Revenue \ 566,000 Purchases (excluding freight in) 300,000 Selling and Administrative Expenses 69,000 Freight In 13,000 Beginning Merchandise Inventory 44,000 Ending Merchandise Inventory 43,000 What is the cost of goods sold for the year?

Manufacturing overhead includes all manufacturing costs,such as direct labor and direct materials.

Which of the following would be included as indirect manufacturing costs for a manufacturing company?

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

Define direct cost.

In a manufacturing company,the salary of the sales staff is an example of period cost.

The following information was obtained from Fizz,Inc.: Advertising Costs \ 10,600 Indirect Labor 7,000 CEO's Salary 500,000 Direct Labor 56,000 Indirect Materials Used 7,500 Direct Materials Used 370,000 Factory Utilities 800 Factory Janitorial Costs 2,500 Manufacturing Equipment Depreciation 2,500 Delivery Vehicle Depreciation 2,600 Administrative Wages and Salaries 33,900 How much were Fizz's period costs?

In a manufacturing company,wages and benefits of assembly line workers are period costs.

Which of the following will be included in manufacturing overhead costs?

Which of the following is true of service companies?

Indirect materials costs are included in manufacturing overhead.

A company that uses labor,equipment,supplies,and facilities to convert raw materials into finished products is a ________.

Nurix,Inc.is a business consulting firm.During the month of February,Nurix earned $55,600 of revenues by providing services to 46 clients.Operating expenses for February were $9,000 and non-operating expenses were $4,000. What is the unit cost per service? (Round your answer to the nearest cent.)

The IMA standards of ethical practice require managerial accountants to maintain their professional competence.

Best,Inc.,a merchandiser,sells office supplies.The following information summarizes Best's operating activities during the year: Utilities Expense \ 6,000 Rent for Store Expense 8,000 Sales Commissions Expense 4,500 Purchases of Merchandise 54,000 Merchandise Inventory on January 1 30,000 Merchandise Inventory on December 31 20,500 Sales Revenue 108,000 Required: Prepare an income statement for Best,Inc.for the year ended December 31,using the format below. Sales Revenue Cost of Goods Sold: Beginning Inventory Purchases Cost of Goods Available for Sale Ending Inventory Cost of Goods Sold Gross Profit Selling Expenses: Sales Commissions Expense Administrative Expenses: Rent Expense Utilities Expense Total Operating Expenses Operating Income

Managerial accounting reporting by a public firm is required to follow the rules of GAAP and guidelines of the Securities and Exchange Commission.

Product costs are expensed ________.

Which of the following formulas represents cost of goods sold for a merchandising business?

The salary of a manufacturing plant manager will be included in manufacturing overhead.