Exam 15: Managerial Accounting and Cost Concepts

The amount of cost of goods manufactured is transferred from the Work in Process Inventory account to the Finished Goods Inventory account.

Fill in the missing data for Company C:

The costs of labor for maintenance and inspections are examples of direct labor.

Primary users of managerial accounting include governmental agencies.

The management accountant must be knowledgeable about all relevant laws,regulations,and technical standards that pertain to his or her duties.

Minor materials and other production supplies that cannot be conveniently traced to specific products are accounted for as indirect materials.

If a management accountant gives information about a future merger of his or her company to a relative,the accountant has acted ethically.

Fill in the missing data for Company B:

Non-value-adding costs increase the cost of a product.

The two primary types of cost behavior are fixed and variable.

Indirect product costs incurred are charged directly to the Cost of Goods Sold account.

Costs such as salary of supervisors and other support personnel,which are accounted for as overhead costs,are called

Which of the following equations is correct?

Period costs are charged against the revenue of the current period.

Costs can also be classified as value-adding or non-value-adding costs.

Which of the following is included in prime costs?

Which of the following is a difference between managerial and financial accounting?

Accounting rules applicable to management accounting are the same as those used for financial accounting.

In a manufacturing company,the cost of direct materials,direct labor,and overhead will most likely become a part of the Cost of Goods Sold account balance.