Exam 18: Managerial Accounting Concepts and Principles

Last year, Smith Company sold 10,000 units of its only product. If sales increase by 15% in the current year, how will unit variable cost and unit fixed cost be affected?

Another title for goods in process inventory is:

For a manufacturer, the cost of goods sold can be computed by adding the beginning finished goods inventory to ________________________ and then subtracting the ending finished goods inventory.

Benny, an employee of Parrott Company, used company assets for his own personal gain. This is an example of

The Ticky Company manufactures tacks. Costs for September were direct labor, $84,000; indirect labor, $36,700; direct materials, $55,900; factory maintenance, $4,800; factory utilities, $3,200; and insurance on plant and equipment, $700. What is Ticky Company's factory overhead for September?

Both financial and managerial accounting influence user's decisions and actions.

The following items for Titus Company are used to compute the cost of goods manufactured and the cost of goods sold. Indicate how each item should be used in the calculations by filling in the blanks with "+" if the item is to be added, "-" if the item is to be subtracted, or "0" if the item is not used in the calculation. The first item is completed as an example.

The Malcolm Baldridge Award was established by

Factory overhead costs normally include all of the following except:

A financial report that summarizes the amounts and types of costs that were incurred in the manufacturing process during the period is a:

An opportunity cost requires a future cash outlay and is relevant for decision making.

If the cost of the beginning goods in process inventory is $10,000, costs of goods manufactured is $890,000, direct materials cost is $330,000, direct labor cost is $210,000, and overhead cost is $315,000, calculate the ending goods in process inventory:

Raw materials that become part of a product and are identified with specific units or batches of a product are called direct materials.

Which of the following items are management concepts that were created to improve companies' performances?

Four factors come together in the manufacturing process: beginning goods in process inventory, direct materials, direct labor, and factory overhead.

Which one of the following items is normally not a manufacturing cost?

What are prime costs? What are conversion costs?

A classification of costs that is useful for assigning responsibility to and evaluating managers is:

Period costs for a manufacturing company would flow directly to:

What are the three types of inventories that are carried by manufacturers? Describe each type of inventory.