Chapter 14
which of the following are fixed costs relative to the number of units produced and sold
- building rent - straight-line depreciation - manager's salary
a schedule of cost of goods manufactured has the following main sections
- computation of cost of goods manufactured - overhead - direct labor - direct materials
which of the following are product costs for a manufacturer
- depreciation on the factory equipment - direct materials
the purpose of managerial accounting is to provide useful information to aid in:
- determining costs of products and services - comparing actual to planned results
the following items would be included in the overhead section of the schedule of cost of goods manufactured
- factory utilities - factory supplies used - factory insurance
each of the following are examples of factory overhead
- indirect materials - indirect labor
which of the following are the variable costs relative to number of units produced and sold
- materials used in production - commissions based on sales
what types of information does managerial accounting provide
- non-financial - financial - information for internal decision makers
Consider a company that manufactures picture frames. Which of the following costs would be considered direct costs?
- oak wood used for frame - glass used in the frame - wages of assembly line worker
materials activity
- raw materials beginning inventory - raw materials purchases
which of the following are period costs for a manufacturer
- rent on the office building - sales commission - wages for administrative staff
which of the following characteristics describe managerial accounting
- used to make planning and control decisions - many projections and estimates
costs that are traceable to a single cost object
direct costs
those who work directly on the product to convert raw materials into a finished product are known as
direct labor
what are prime costs
direct material + direct labor
costs which are tangible components of the finished product are called
direct materials
conversion costs consist of
factory overhead and direct labor
structured and controlled by GAAP
financial accounting
period costs
include selling expenses and general office personnel, advertising expenses, and depreciation of office equipment
the purpose of the information is to assist managers in making planning and control decisions
managerial accounting
managerial accounting is different from financial accounting in that
managerial accounting is used in planning and control decisions and financial accounting is used in investment and credit decisions
the main purpose of managerial accounting is
providing useful information to internal managers
the cost of handlebars on a bicycle are considered
variable and direct
sales commissions computed as a percent of sales revenue are
variable costs
Consider a company that manufactures automobiles. Which of the following costs would be considered a direct cost?
wages of assembly line workers