Exam 16: Managerial Accounting Concepts and Principles

Indirect labor would be included in factory overhead.

A company sells goods for $150,000 that cost $60,000 to manufacture. Which statement(s) are true?

Conversion cost is the combination of direct labor cost and factory overhead cost.

A plant manager's salary may be referred to as:

The cost of materials entering directly into the manufacturing process is classified as factory overhead cost.

Cost of goods sold for a manufacturer equals cost of goods manufactured plus:

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

A report analyzing the dollar savings of purchasing new equipment to speed up the production process is a managerial accounting report.

What is the purpose of the Statement of Cost of Goods Manufactured?

The cost of a manufactured product generally consists of which of the following costs?

Conversion costs are the combination of direct labor, direct material and factory overhead costs.

A staff department has no direct authority over a line department.

Another term often used to refer to factory overhead is:

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.

An example of a period cost is:

Manufacturers use labor, plant, and equipment to convert direct materials into finished products.

Costs which are reported on the income statement as part of cost of goods sold are referred to as:

Period costs include direct materials and direct labor.

Which of the following is an example of a factory overhead cost?

Compute conversion costs given the following data: Direct Materials, $347,500; Direct Labor, $186,300; Factory Overhead, $187,900; and Selling Expenses, $45,290.