ch. 14 optional homework accounting 2
activities such as using materials and labor to produce finished products are considered
production activities
the main purpose of managerial accounting is to
providing financial and nonfinancial information to an organizations managers
materials activities include
purchasing materials, raw materials beginning inventory
the characteristics of the fraud triangle include
rationalization, pressure, and opportunity
the cost of materials a company purchases to use in making products are
raw materials
a merchandising company usually has one inventory account while a manufacturing company usually has __ inventory accounts
3
A manufacturing company reports the following items : WIP inventory beg. bal. $500. WIP inventory end bal. $200. direct materials $700, direct labor $600, Factory OH $100, find the cost of goods manufactured
DM + DL + FOH + WIP beg. - WIP end = COG manufactured. 700+600+500+100-200 = $1700
activities in the value chain in order they occur for a cookie retailer
acquire raw materials, baking, sales and services
managerial information
allows estimates and projections
managerial accounting information is normally provided to managers
as they request it
examples of lean practices
continuous improvement, totally quality management, and just-in-time manufacturing
a company incurred manufacturing costs of $45,000. if the beginning balance in Work in Process inventory is $10,000 and the ending balance is $15,000, then what is the cost of goods manufactured
cost of goods manufactured from WIP Manufactured costs + beg. bal. WIP inventory - en. bal. $45,000 + $10,000 - $15,000 = $40,000
the primary difference between the income statement for a merchandising company and a manufacturing company is in the __ section
cost of goods sold
an emphasis on the changing needs of customers is called
customer orientation
which of the following are product costs for a manufacturer
depreciation on the factory equipment. direct materials
costs which are crucial parts of the finished product are called
direct costs
those who work directly on the product to convert raw materials into a finished product are known as
direct labor
prime costs consists of
direct labor and direct materials
a schedule (statement) of cost of goods manufactured has the following main sections
direct labor, direct materials, cost of goods manufactured, overhead
a trend whereby consumers expect to be able to purchase items electronically, whenever and wherever they want is
e-commerce
which of the following are indirect costs for the finishing department of a furniture manufacturer?
electricity cost for the plant, plant managers salary, and rent on the manufacturing facility
the triple bottom line focus on three measures including
environmental, social, and financial
conversion costs consist of
factory overhead and direct labor
production activities used
factory overhead costs, direct materials used, and production workers assembling products
which items would be included in the overhead section of the schedule of cost of goods manufactured
factory utilities, factory insurance, and factory supplies used
inventory which is completed but not yet sold by a manufacturer is known as
finished goods inventory
managerial reporting systems are
flexible
A manufacturing company reports the following items: Finished goods inventory beginning balance:$1,000 Finished goods inventory ending balance:$1200 Cost of goods manufactured: $5000 find the cost of goods sold
for manufacturer Finished goods inventory beg. bal. + cost of goods sold manufactured - finished goods inventory end. bal. $1000+$5000-$1200+ $4800
expansion of competition which provides customers with many choices is called
global economy
data visualization
graphical depiction of data to help people interpret their meaning
lean practices
include which are designed to eliminate waste while still satisfying the customer
managerial accounting has the following characteristics
includes mostly monetary and some nonmonetary information. emphasis is on projects, processes, and divisions. focus is on internal users
consider a service company that providers carpet cleaning and uses straight-line depreciation. Classify the cost of the depreciation on the carpet cleaning machines
indirect
managerial accounting primarily provides information to
internal users
the main difference between a manufacturers and a merchandisers balance sheet is in the
inventory account
digital manufacturing combines __ to manufacturing products
machines, human control, and computers
allows internal users tot determine what information they need to make planning and control decisions and is not rules-based
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 making investment and credit decisions
activities such as purchasing raw materials are
materials activities
consider a company that manufactures picture frames. Which of the following costs would br considered direct costs?
oak wood used for frames. wages of assembly line workers. glass used in the frame
data analytics
process of analyzing data to identify meaningful relations and trends
the cost of materials a company purchases to use in the making products are
raw materials
which are period costs for a manufacturer
rent on the office building. sales commissions. salary for administrative staff
The Sustainability Accounting Standards Board was established to develop __ standards for businesses sustainability activities
reporting
what are period costs for a manufacturer
salary for administrative staff, sales commissions, and rent on the office building
sales activities include
selling finished products. finished goods inventory
direct materials costs for an automobile manufacturer would include all of the following
steering wheels, tires, and bumpers
types of e-commerce
text messages sales activities, online sales activities, smartphone sales activities
a series of activities that add value to a company's products or services is called
value chain
inventory which is partially complete is known as
work in process