Exam 15: Managerial Accounting Concepts and Principles

Managers use managerial information to evaluate performance of a company's operation.

Reedy Company reports the following information for 2012: Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31, 2012, is:

If the cost of employee wages is not a significant portion of the total product cost, the wages are classified as direct materials cost.

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

Which of the following would be least likely to be considered a managerial accounting report?

The primary goal of managerial accounting is to provide information to:

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

Differentiate between financial and managerial accounting, addressing such issues as what reports are generated, when, and for whom.

A product cost is:

In order to be useful to managers, management accounting reports should possess all of the following characteristics EXCEPT:

The costs of materials and labor that do not enter directly into the finished product are classified as factory overhead.

Which of the following manufacturing costs is an indirect cost of producing a product?

Williams Company reports production costs for 2015 as follows: Williams Company's period costs for 2015 amount to:

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

For an automotive repair shop, the wages of mechanics would be classified as direct labor cost.