Exam 18: Managerial Accounting Concepts and Principles

Identify the following costs as (a) prime cost, (b) conversion cost, (c) or both for a cake factory. 1. _____ Frosting 2. _____ Wages of the baker 3. _____ Sprinkles for the topping (considered an indirect material) 4. _____ Depreciation on oven

Goods that are partway through the manufacturing process, but not yet complete, are referred to as materials inventory.

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

Which of the following is considered a part of factory overhead cost?

Differentiate between: a) direct materials versus indirect materials b) direct labor versus indirect labor

What term is used to describe the process of monitoring operating results and comparing actual results with the expected results?

Identify the following costs as (a) direct materials, (b) direct labor, or (c) factory overhead for a cake manufacturer. 1. _____ Frosting 2. _____ Depreciation on oven 3. _____ Wages of bakers 4. _____ Sprinkles for topping

On the balance sheet for a manufacturing business, the cost of direct materials, direct labor, and factory overhead are categorized as either materials inventory, work in process inventory, or finished goods inventory.

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

Indirect labor and indirect materials are classified as:

Which of the following costs are referred to as conversion costs?

The Zoe Corporation has the following information for the month March. Determine the (a) cost of goods manufactured, and (b) cost of goods sold.

A cost object indicates how costs are related or identified.

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

Costs other than direct materials cost and direct labor cost incurred in the manufacturing process are classified as factory overhead cost.

Indirect costs can be specifically identified to a cost object.

Costs on the income statement for both a merchandiser and a manufacturer would include:

The vice presidents of production and sales and the controller hold line positions in most large organizations.

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

Work in process inventory on December 31, 2011, is $42,000. Work in process inventory decreased by 40% during 2011. Total manufacturing costs incurred in 2011 amount to $260,000. What is cost of goods manufactured?