ACCT 241 ch.1

Financial statements

Financial Accounting

General-purpose reports

Financial Accounting

Limited to historical cost data

Financial Accounting

Prepared in accordance with generally accepted accounting principles

Financial Accounting

Reports generally pertain to the business as a whole

Financial Accounting

Reports issued quarterly or annually

Financial Accounting

Which one of the following represents a period cost?

The VP of Sales' salary and benefits

steering wheel

direct materials

engine

direct matierals

Which of the following is not classified as direct labor?

wages of supervisors

wages of assembly line worker

direct labor

wages paid to production workers

direct labor

Which one of the following would not be classified as manufacturing overhead?

direct materials

frames and tires used in manufacturing bicyles

direct materials

tires

direct materials

windshield

direct materials

The three cost elements in manufacturing a product are (1)___________, (2) _______________, and (3)______________.

direct materials, direct labor and Manufacturing overhead

Special purpose reports

Managerial Accounting

Reports are used internally

Managerial accounting

Barry's BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How much are total product costs?

$2,050

a.Advertising b.Direct materials used c.Sales salaries d.Indirect factory labor e.Repairs to office equipment f.Factory manager's salary g.Direct labor h.Indirect materials

-period cost -product cost -period cost -product cost -product cost -period cost -product cost -product cost

Which group of costs consists of only product costs?

Direct labor, indirect labor, factory utilities

Which of the following is considered part of the controlling process?

Keeping the company's activities on track

Which one of the following is not a direct material?

Lubricant for a ball-bearing joint for a large crane

Reporting standard is relevance to the decision to be made

Managerial Accounting

Reports generally pertain to subunits

Managerial Accounting

Which of the following are considered to be management's three broad functions?

Planning, directing, and controlling

Because of automation, which component of product cost is declining?

direct labor

Which of the following is not a management function?

constraining

In determining whether planned goals are being met, a manager is performing the function of

controlling

The function that pertains to keeping the activities of the enterprise on track is

controlling

The process of keeping the company's activities on track is

controlling

Directing includes

coordinating a company's diverse activities and human resources to produce a smooth-running operation

Which of the following is not an internal user?

creditor

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is

direct labor

The work of factory employees that can be physically and directly associated with converting raw materials into products is classified as

direct labor

Financial and managerial accounting are similar in that both

deal with the economic events of an enterprise

Exercising good judgment in performing the managerial functions and choosing among alternative courses of action is called

decision making

Which of the following is not a separate management function?

decision-making

Financial accounting information is prepared mainly for Entry field with correct answer_______ users, while managerial accounting information is prepared primarily for_________ users

external,internal

The managerial function of controlling

includes performance evaluation by management

Cotter pins and lubricants used irregularly in a production process are classified as

indirect materials

Product costs are also called

inventoriable costs

Managerial accounting applies to each of the following types of businesses except

managerial accounting applies to all types of firms

managerial accounting applies to all types of firms

managers

Indirect materials and indirect labor are classified as

manufacturing overhead

depreciation of factory machinery

manufacturing overhead

depreciation on factory equipment

manufacturing overhead

factory machinery lubricants

manufacturing overhead

insurance on factory equipment and machinery

manufacturing overhead

salary of painting supervisor

manufacturing overhead

Managerial accounting information

pertains to subunits of the entity and may be very detailed

A manager that is establishing objectives is performing which management function?

planning

The ________function is concerned with setting goals and objectives for the entity.

planning

The management function that requires management to look ahead and establish objectives is

planning

The management function that requires managers to look ahead and establish objectives is

planning

three broad managerial functions are: (1)_________,(2)__________, and (3)_________.

planning, directing and controlling

Each of the manufacturing cost components is a______ cost.

product

Both direct materials and indirect materials are

raw materials

The major reporting standard for presenting managerial accounting information is

relevance

Product costs include each of the following except

selling and administrative expenses

Planning is a function that involves

setting goals and objectives for an entity

For inventoriable costs to become expenses under the matching principle,

the product to which they attach must be sold.