Exam 18: Managerial Accounting Concepts and Principles

A management concept that encourages all managers and employees to be in tune with the wants and needs of customers, and which leads to flexible product designs and production processes, is called:

A variable cost changes in proportion to changes in the volume in activity.

Managerial accounting assists in analysis, planning, and control of costs.

Financial accounting relies on accepted principles that are enforced through an extensive set of rules and guidelines; on the other hand, managerial accounting systems are flexible.

A manufacturing company's finished goods inventory on January 1 was $68,000; cost of goods manufactured was $147,000; and the December 31 finished goods inventory was $77,000. What is the cost of goods sold for that year?

Policies and procedures used by management to monitor and control business activities are known as _________________________.

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

The concept of total quality management focuses on continuous improvement.

Expenditures directly associated with the manufacture of finished goods that include direct materials and direct labor are _____________________ costs.

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

Just-in-time manufacturing is a system where companies manufacture products only after the orders have been received from customers.

Under a just-in-time manufacturing system, large quantities of inventory are accumulated throughout the factory to be certain that needed components are available each time that they are needed.

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

Factory overhead includes selling and administrative expenses because they are indirect costs of a product.

Ringle Company is a manufacturer of compact disks (CDs). Place each of the following costs in the appropriate column.

The following information is available for the year ended December 31: The amount of raw materials used in production for the year is:

One of the usual differences between financial and managerial accounting is the time dimension of the information reported.

Product costs:

The manufacturing statement is also known as the schedule of manufacturing activities or the schedule of cost of goods manufactured.

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.