ACCT 241 ch.1
Financial statements
Financial Accounting
General-purpose reports
Financial Accounting
Limited to historical cost data
Financial Accounting
Prepared in accordance with generally accepted accounting principles
Financial Accounting
Reports generally pertain to the business as a whole
Financial Accounting
Reports issued quarterly or annually
Financial Accounting
Which one of the following represents a period cost?
The VP of Sales' salary and benefits
steering wheel
direct materials
engine
direct matierals
Which of the following is not classified as direct labor?
wages of supervisors
wages of assembly line worker
direct labor
wages paid to production workers
direct labor
Which one of the following would not be classified as manufacturing overhead?
direct materials
frames and tires used in manufacturing bicyles
direct materials
tires
direct materials
windshield
direct materials
The three cost elements in manufacturing a product are (1)___________, (2) _______________, and (3)______________.
direct materials, direct labor and Manufacturing overhead
Special purpose reports
Managerial Accounting
Reports are used internally
Managerial accounting
Barry's BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How much are total product costs?
$2,050
a.Advertising b.Direct materials used c.Sales salaries d.Indirect factory labor e.Repairs to office equipment f.Factory manager's salary g.Direct labor h.Indirect materials
-period cost -product cost -period cost -product cost -product cost -period cost -product cost -product cost
Which group of costs consists of only product costs?
Direct labor, indirect labor, factory utilities
Which of the following is considered part of the controlling process?
Keeping the company's activities on track
Which one of the following is not a direct material?
Lubricant for a ball-bearing joint for a large crane
Reporting standard is relevance to the decision to be made
Managerial Accounting
Reports generally pertain to subunits
Managerial Accounting
Which of the following are considered to be management's three broad functions?
Planning, directing, and controlling
Because of automation, which component of product cost is declining?
direct labor
Which of the following is not a management function?
constraining
In determining whether planned goals are being met, a manager is performing the function of
controlling
The function that pertains to keeping the activities of the enterprise on track is
controlling
The process of keeping the company's activities on track is
controlling
Directing includes
coordinating a company's diverse activities and human resources to produce a smooth-running operation
Which of the following is not an internal user?
creditor
The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is
direct labor
The work of factory employees that can be physically and directly associated with converting raw materials into products is classified as
direct labor
Financial and managerial accounting are similar in that both
deal with the economic events of an enterprise
Exercising good judgment in performing the managerial functions and choosing among alternative courses of action is called
decision making
Which of the following is not a separate management function?
decision-making
Financial accounting information is prepared mainly for Entry field with correct answer_______ users, while managerial accounting information is prepared primarily for_________ users
external,internal
The managerial function of controlling
includes performance evaluation by management
Cotter pins and lubricants used irregularly in a production process are classified as
indirect materials
Product costs are also called
inventoriable costs
Managerial accounting applies to each of the following types of businesses except
managerial accounting applies to all types of firms
managerial accounting applies to all types of firms
managers
Indirect materials and indirect labor are classified as
manufacturing overhead
depreciation of factory machinery
manufacturing overhead
depreciation on factory equipment
manufacturing overhead
factory machinery lubricants
manufacturing overhead
insurance on factory equipment and machinery
manufacturing overhead
salary of painting supervisor
manufacturing overhead
Managerial accounting information
pertains to subunits of the entity and may be very detailed
A manager that is establishing objectives is performing which management function?
planning
The ________function is concerned with setting goals and objectives for the entity.
planning
The management function that requires management to look ahead and establish objectives is
planning
The management function that requires managers to look ahead and establish objectives is
planning
three broad managerial functions are: (1)_________,(2)__________, and (3)_________.
planning, directing and controlling
Each of the manufacturing cost components is a______ cost.
product
Both direct materials and indirect materials are
raw materials
The major reporting standard for presenting managerial accounting information is
relevance
Product costs include each of the following except
selling and administrative expenses
Planning is a function that involves
setting goals and objectives for an entity
For inventoriable costs to become expenses under the matching principle,
the product to which they attach must be sold.