Managerial Accounting connect 1 (chp 14)

why is a purchasing agent not considered a direct materials cost?

Employees who work on the product are a direct labor cost.

The following items would be included in the overhead section of the schedule of cost of goods manufactured:

Factory insurance Factory supplies used Factory utilities

The main purpose of managerial accounting is

providing financial and nonfinancial information to an organization's managers

The cost of materials a company purchases to use in making products are

raw materials

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. Cost of goods manufactured 4. Minus 5. Ending finished goods Inventory

Major Manufacturing Company has direct materials used of $50,000, beginning raw materials inventory of $10,000 and ending raw materials inventory of $8,000. Compute the raw materials inventory turnover.

Average inventory=(Beginning inventory+Ending inventory)/2 =(10,000+8000)/2 =$9000 =50,000/9,000 =5.55

Sparks Fireworks manufactures and sells fireworks. Their raw materials used is $71,500. Their beginning raw materials inventory was $5,000 and their ending raw materials inventory was $6,000. Sparks' raw materials inventory turnover is

Average raw materials inventory = (Beginning raw materials inventory + Ending raw materials inventory) / 2 Average raw materials inventory = ($5,000 + $6,000) / 2 Average raw materials inventory = $5,500 Raw materials inventory = Raw materials used / Average raw materials inventory Raw materials inventory = $71,500 / $5,500 Raw materials inventory = 13.00 times

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

Which of the following are product costs for a manufacturer?

Depreciation on the factory equipment Direct materials

A schedule of cost of goods manufactured has the following main sections:

Direct labor Overhead Direct materials Cost of goods manufactured

Which of the following are indirect costs for the finishing department of a furniture manufacturer?

Electricity cost for the plant, Rent on the manufacturing facility Plant manager's salary

Match the activity with the activity type.

Purchase materials - Materials activity Use materials - Production activity Product sold - Sales activity

Which of the following are period costs for a manufacturer?

Salary for administrative staff Rent on the office building Sales commissions

Which of the following are direct costs for a shoe manufacturer?

Shoe laborers who make the shoes Leather used in the shoes

True or false: The main purpose of managerial accounting is to provide relevant information to its managers.

True

Which of the following characteristics describe managerial accounting?

Used to make planning and control decisions Many future projections

mangerial accounting uses

current performance and future projections

Understanding the changing needs of customers is referred to as

customer orientation

Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers.

direct

Prime costs consists of:

direct labor and direct materials

Costs which are crucial parts of the finished product are called

direct materials

Which of the following are included in Raw materials inventory?

direct materials

Financial accounting provides information for _________ users, while managerial accounting provides information for _________ decision makers.

external, internal

Conversion costs consist of:

factory overhead and direct labor

Managerial accounting has the following characteristics?

focus is on internal users Includes mostly monetary and some nonmonetary information Emphasis is on projects, processes, and divisions

Expansion of competition which provides customers with many choices is called a _____ economy.

global

Expansion of competitive boundaries which allows customers many choices is called a:

global economy

Data Visualization

graphical depiction of data to help people interpret their meaning

Digital manufacturing combines _____ to manufacture products.

human control computers machines

Consider a service company that provides carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines.

indirect

List the following activities in the order in which they occur, with the first activity on top (sales, production, materials)

materials activity, production activity, sales activity

The fraud triangle shows three factors that push a person to commit fraud and includes ___, pressure, and rationalization.

opportunity

financial accounting uses

past performance using historical information

The characteristics of the fraud triangle include:

pressure opportunity rationalization

data analytics

process of analyzing data to identify meaningful relations and trends

Direct materials costs for an automobile manufacturer would include all of the following:

steering wheels bumpers tires