Exam 15: Managerial Accounting Concepts and Principles

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

The controller's staff often consists of several management accountants. All of the following would most likely be on the controller's staff EXCEPT:

All of the following would probably be considered a direct material except:

Factory overhead cost is sometimes referred to as factory burden.

Period costs are operating costs that are expensed in the period in which the goods are sold.

Accounting is an information system that provides essential data about the economic activities of an entity to various users to aid them in making informed judgments and decisions.

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

What term is used to refer to the cost of changing direct materials into a finished manufactured product?

Classify the following costs as either a product cost or a period cost:

Sineath Industries had a fire and some of its accounting records were destroyed. Available information is presented below for the year ended December 31, 2011.

Indirect labor and indirect materials are classified as:

At the beginning of 2011, the Gilbert Company's work in process inventory account had a balance of $30,000. During 2011, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead in 2011 amounted to $90,000. Cost of goods manufactured is $230,000 in 2011. The balance in work in process inventory on December 31, 2011, is:

Controlling deals with choosing goals and deciding how to achieve them.

Factory overhead is an example of a product cost.

Control is the process of monitoring operating results and comparing actual results with the expected results.

Only the value of the inventory that is sold will appear in the income statement.

Sienna Company has the following information for January.

Indirect labor would be included in factory overhead.

Accounting designed to meet the needs of decision-makers inside the business is referred to as:

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