Exam 14: Managerial Accounting Concepts and Principles

Horton Foods bakes and sells 1,000 dozen bagels each week to food service operations.Among the costs are bakers' salaries,$24,000; production management salaries,$16,000; production equipment operating costs,$32,000; and flour and ingredient costs,$15,000. Required: (a)Calculate prime costs (b)Calculate conversion costs.

The following costs are included in a recent summary of data for a company: advertising expense,$85,000; depreciation expense - factory building,$133,000; direct labor,$250,000; direct material used,$300,000; factory utilities,$105,000; and sales salaries expense,$150,000.Determine the dollar amount of conversion costs.

The main principle of the lean business model is the elimination of waste of every kind while satisfying the customer and providing a positive return to the company.

Fraud involves the deliberate or accidental misuse of the employer's assets.

List the four elements found in all fraud schemes.

An opportunity cost is:

Managerial accounting information can be forwarded to the managers of a company quickly since external auditors do not have to review it,and estimates and projections are acceptable.

A ___________________ cost has already been incurred and cannot be avoided or changed,so it irrelevant to decision making.

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

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

What are the components of the manufacturing statement? Describe each component.

Product costs:

One of the main differences between the calculation of cost of goods sold for a merchandiser and that of a manufacturer is that the calculation includes cost of goods purchased for the merchandiser,but the manufacturer replaces that with _____________________________.

Prime costs consist of direct labor and factory overhead.

A variable cost changes in proportion to changes in the volume in activity.

A management concept that applies quality improvement to all aspects of business activities is called:

The following costs are included in a recent summary of data for a company: advertising expense,$85,000; depreciation expense - factory building,$133,000; direct labor,$250,000; direct material used,$300,000; factory utilities,$105,000; and sales salaries expense,$150,000.Determine the dollar amount of prime costs.

Reference: 14_01 Use the following information from Hardy Co. for the current year: Direct materials used \ 5,000 Direct Labor 7,000 Total Factory overhead 5,100 Beginning goods in process 3,000 Ending goods in process 4,000 -Hardy Co.'s cost of goods manufactured for the current year is:

Costs that flow directly to the current income statement are called:

_____________________ are beliefs that distinguish right from wrong.