ACC exam 1 terms

Which of the following is not a characteristic of useful managerial accounting reports?

GAAP

A company sells goods for $150,000 that cost $54,000 to manufacture. Which of the following statements is true?

The company will decrease finished goods by $54,000

An example of a period cost is

advertising expense

Finished goods inventory is reported on the

balance sheet as a current asset

In order to be useful to managers, managerial accounting reports should possess all of the following characteristics EXCEPT

be prepared in accordance with generally accepted accounting principles

Which of the following individuals are charged with the responsibility for directing the day-to-day operations of a business?

managers

the income statement for both a merchandiser and a manufacturer would include

operating expenses

Managerial accounting reports are

prepared according to management needs

Which of the following is most associated with financial accounting reports?

prepared in accordance with GAAP

Indirect costs incurred in a manufacturing environment that cannot be traced directly to a product are treated as

product costs and expensed when the goods are sold

Cost of goods manufactured is equal to

total manufacturing costs plus beginning work in process inventory less ending work in process inventory

Beginning work in process is equal to

cost of goods manufactured PLUS ending work in process MINUS manufacturing costs incurred during the current period

Which of the following costs are conversion costs?

direct labor cost and factory overhead cost

A product cost is

expensed in the period the product is sold

Another term for factory overhead is

factory burden

All of the following are examples of indirect labor except?

machine operators