ACC 202: Managerial Accounting

Penner Company reported total manufacturing costs of $410,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?

$236,000

These costs are included in a recent summary of data for a company: - advertising expense: $85,000; - depreciation expense- factory building: $133,000; - direct labor: $250,000; - direct material used: $300,000; - factory utilities: $105,000; - sales salaries expense: $150,000. Determine the dollar amount of manufacturing overhead costs.

$238,000

Which one of the following is an example of a period cost?

A manager's salary for work that is done in the corporate head office.

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

Direct labor

Raw materials costs are classified as manufacturing overhead.

False

The inventory accounts that show the costs of completed goods on hand and the costs applicable to production that is only partially completed are, respectively,

Finished-Goods Inventory and Work-In-Process Inventory

Product costs are also called

Inventoriable costs.

Which one of these would be LEAST LIKELY to be classified as a direct material?

Lubricant for a ball-bearing joint for a large crane.

The major reporting standard for presenting managerial accounting information is...

Relevance

Which of the following is not classified as direct labor?

Supervisors salary in a production factory.

What is "balanced" in the balanced scoreboard approach?

The emphasis on financial and non financial performance measurements.

What term describes all business processes associated with providing a product or service?

The value chain.

Both direct labor cost and indirect labor cost are product costs.

True

Indirect materials and indirect labor are both *inventoriable costs (*costs that are accounted for in Raw-Materials Inventory, Work-In-Process Inventory or Finished Goods Inventory).

True

Managerial accounting is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.

True

The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.

True

For a manufacturing company, which of the following is an example of a period cost rather than a product cost?

Wages of salespersons.

Manufacturing costs include

direct materials, direct labor, and manufacturing overhead.

The wages of a janitor within the factory would be classified as

indirect labor.

Nuts, bolts, screws, oil and grease used occasionally in a production process are classified as

indirect materials.

As current technology changes manufacturing processes, it is likely that direct

labor will decrease.

Manufacturings costs that cannot be classified as either direct materials or direct labor are known as

manufacturing overhead.

The product cost that is most difficult to associate with a product is

manufacturing overhead.

For inventoriable costs to become expenses under the matching principle,

the product to which they attach must be sold.

Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called

total quality management.