Managerial Accounting Chapter 14

Process of analyzing data to identify meaningful relations and trends.

Data Analytics

An emphasis on the changing needs of customers is called customer.

Orientation

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

Raw Materials

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

Rent on the manufacturing facility, plant manager's salary, and electricity cost for the plant.

Which of the following are period costs for a manufacturer?

Rent on the office building, salary for administrative staff, and sales commissions.

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

Shoe laborers who make the shoes and leather used in the shoes.

List the following activities in the order in which they occur, with the first activity on top.

1. Materials Activity 2. Production Activity 3. Sales Activity

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.

$10025

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 $.

$4800

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

Graphical depiction of data to help people interpret their meaning.

Data Visualization

Product Sold

Sales Activity

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

Global Economy

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.

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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.

5.55 50,000/(10,000+8,000/2)

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

Which of the following are included in Raw materials inventory?

Direct Materials

Prime costs consists of:

Direct labor and direct materials.

Which of the following are product costs for a manufacturer?

Direct materials and depreciation on the factory equipment.

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

Direct materials, direct labor, overhead, and cost of goods manufactured.

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

Factory utilities, factory supplies used, and factory insurance

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

Global Economy

Digital manufacturing combines _____ to manufacture products.

Human control, computers, and 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

Managerial accounting is different from financial accounting in that:

Managerial accounting is used in planning and control decisions and financial accounting is used in making investment and credit decisions

Purchase Materials

Materials Activity

Use Materials

Production Activity

Consider a company that manufactures automobiles. Which of the following costs would be considered a direct cost?

Wages of assembly line workers.