Exam 14: Managerial Accounting Concepts and Principles

The following cost items relate to the Brock Company. Classify each cost as a variable cost, a fixed cost, or a mixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost.

What are the components of the manufacturing statement? Describe each component.

Expenditures that flow directly to the current income statement and are not reported as assets are ___________________ costs.

Manufacturers usually have three inventories: raw materials, goods in process, and finished goods.

What is the main difference between the income statement of a manufacturer and that of a merchandiser?

Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are:

The total cost of goods completed during the accounting period for a manufacturer is called:

Use the following information to compute the cost of goods manufactured: Beginning raw materials \ 5,500 Ending raw materials 4,000 Direct labor 12,250 Raw material purchases 7,400 Depreciation on factory equipment 6,500 Factory repairs and maintenance 3,300 Beginning finished goods inventory 10,200 Ending finished goods inventory 8,900 Beginning goods in process inventory 5,700 Ending goods in process inventory 6,300

The cost of partially completed products is included in the balance of the Goods in Process Inventory account.

The management concept of customer orientation causes a company to spend large amounts on advertising to convince customers to buy the company's standard products.

Product costs are expenditures necessary and integral to finished products.

Which of the following costs is not included in factory overhead?

Harv's HiFi Sound Systems produces speakers for movie theaters that sell for $1,200 each. Listed below are selected cost items for the production of 600 units. Classify each cost as either fixed or variable, and either a product or a period cost.

Period costs for a manufacturing company would flow directly to:

The balanced scorecard aids in continuous improvement by augmenting financial measures with drivers or indicators of future financial performance.

Goods a company acquires to use in making products are called:

Information for Gifford, Inc., as of December 31 follows: Prepare a manufacturing statement for the year ended December 31.

A ______________________ system means that a company acquires or produces inventory only when needed.

Indirect labor refers to the cost of the workers whose efforts are directly traceable to specific units or batches of product.

The model whose goal is to eliminate waste while satisfying the customer and providing a positive return to the company is the _____________________.