Exam 1: Managerial Accounting Concepts and Principles

Selling and administrative expenses are normally period costs.

Flexibility of practice when applied to managerial accounting means that:

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

Gordon Company sold 2,000 more units than budgeted of its only product. How will total fixed cost be affected?

Which of the following is the correct formula for calculating raw materials inventory turnover for a manufacturer?

Manufacturing costs other than direct materials and direct labor, and are not readily traceable to specific units or batches of production are called:

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

The focus of managerial accounting information is on the organization as a whole.

Craigmont Company's direct materials costs are $3,000,000, its direct labor costs total $7,000,000, and its factory overhead costs total $5,000,000. Its conversion costs total:

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

A manufacturing company has a beginning finished goods inventory of $14,600, raw material purchases of $18,000, cost of goods manufactured of $32,500, and an ending finished goods inventory of $17,800. The cost of goods sold for this company is:

Goals of a lean business model include all of the following except:

A manufacturing company has a beginning finished goods inventory of $28,300, cost of goods manufactured of $58,500, and an ending finished goods inventory of $27,600. The cost of goods sold for this company is:

A ________ cost does not change in total in proportion to changes in the volume of activity within the relevant range.

The main difference between the cost of goods sold of a manufacturer and a merchandiser is that the manufacturer includes cost of goods manufactured rather than cost of goods purchased.

Use the cost information below for Sundar Company to determine the cost of goods manufactured during the current year: Direct materials used \ 19,000 Direct labor used 24,500 Factory overhead 55,100 Beginning work in process inventory 10,700 Ending work in process inventory 11,300

Which of the following is not part of the materials activity in the flow of manufacturing activities?

The Work in Process Inventory account is found only in the ledgers of manufacturing companies.

An important managerial accounting report is the budget, which predicts revenues and expenses.

For each item shown below, classify it as a product cost or a period cost, by placing an X in the appropriate column. For each item that is a product cost, also indicate whether it is a direct cost or an indirect cost with respect to a unit of finished product.