Managerial Accounting (Chapter 14)
Financial accounting provides information for (internal/external) users, while managerial accounting provides information for (internal/external) decision makers.
External; internal
Conversion costs consist of:
Factory overhead and direct labor
Managerial accounting primarily provides information to:
Internal users
Activities such as purchasing raw materials are considered ___________ activity
Materials
What types of information does managerial accounting provide? (Check all that apply.)
Non-financial Information for managers Financial
A company began the year with $500 in raw materials and purchased $10,250 more during the year. If the company has $725 in raw materials at the end of the year, then they would report direct materials used of ______________ on the schedule of cost of goods manufactured.
$10,025 $500 + $10,250 - $725 = $10,025
List the items below in the correct order in which they would appear in the calculation of cost of goods sold for a manufacturing company
1. Beginning finished goods Inventory 2. Plus 3. Cot of goods manufactured 4. Minus 5. Ending finished goods Inventory
List the following activities in the order in which they occur, with the first activity on top: Materials activity Production activity Sales activity
1. Materials activity 2. Production activity 3. Sales activity
A manufacturing company reports the following items: Finished goods inventory, beginning balance: $1,000 Finish goods inventory, ending balance: $1,200 Cost of goods manufactured, $5,000 The cost of goods sold is
Cost of Goods Sold = Opening balance + Cost of goods manufactured - Closing Balance Cost of Goods Sold = 1000 + 5000 - 1200 Cost of Goods Sold = $4800
Consider a company that manufactures automobiles. Which of the following costs would be considered a direct cost? A. Wages of factory maintenance worker B. Salary of the accounting manager C. Salary of production supervisor D. Wages of assembly line workers
D. Wages of assembly line workers
Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers.
Direct
Costs which are crucial parts of the finished product are called
Direct costs
Prime costs consist of:
Direct materials and direct labor
Managerial accounting has the following characteristics? (Check all that apply.)
Emphasis on projects, processes, and divisions Focus on its internal users Includes mostly monetary and some non-monetary information
The characteristics of the fraud triangle include: (Check all that apply)
Rationalization Pressure Opportunity
The cost of materials a company purchases to use in making products are
Raw materials
The main purpose of managerial accounting is
To provide financial and non-financial information to an organization's managers
True or false: Managerial accounting provides information to internal managerial and executive employees who are in charge of a company's business activities.
True
Which of the following characteristics describe managerial accounting? (Check all that apply.)
Used to make planning and control decisions Many future projections
Inventory which is partially complete is known as
Work in progress