ACG CHAPTER 14

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

1. material 2. productivity 3. sales

Which of the following are direct costs for a shoe manufacturer? (Check all that apply.)

Leather used in the shoes Shoe laborers who make the shoes

Partially complete units are known as ______ _______ _______ inventory.

Work in Process

Understanding the changing needs of customers is referred to as

customer orientation.

Managerial reporting systems are

flexible

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

global

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

global economy

Lean principles include all of the following except:

global economy

Data visualization

graphical depiction of data to help people interpret their meaning

Digital manufacturing combines _____ to manufacture products. (Check all that apply.)

human control machines computers

Managerial accounting primarily provides information to

internal users.

Lean practices include those which are designed to eliminate waste while still satisfying the customer. Examples of lean practices include all of the following:

just-in-time manufacturing continuous improvement total quality management

The characteristics of the fraud triangle include: (Check all that apply.)

pressure opportunity rationalization

Data analytics

process of analyzing data to identify meaningful relations and trends

The main purpose of managerial accounting is

providing financial and nonfinancial information to an organization's managers

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

raw materials.

A _____ company does not have any inventory held for sale, while a merchandising company does have merchandise for sale.

service

Inventory which is partially complete is known as

work in process

True or false: Finished goods are products which are partially complete.

F

The following items would be included in the overhead section of the schedule of cost of goods manufactured: (Check all that apply.)

Factory supplies used Factory utilities Factory insurance

True or false: The main purpose of managerial accounting is to provide general-purpose financial statements.

False

What types of information does managerial accounting provide? (Check all that apply.)

Financial Non-financial Information for managers

Managerial accounting has the following characteristics? (Check all that apply.)

Includes mostly monetary and some nonmonetary information Emphasis is on projects, processes, and divisions focus is on internal users

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 / Financial) accounting allows internal users to determine what information they need to make planning and control decisions and is not rules-based.

Managerial

Materials activities include: (Check all that apply.)

purchasing materials. raw materials beginning inventory.

List the activities in the value chain in the order they occur for a cookie retailer, with the first activity on top.

1. Acquire raw materials 2. Baking 3. Sales 4. Service

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

A company incurred the following costs: $6,000 for indirect labor; $26,000 for direct labor; $2,500 for utilities for the factory building; $10,300 for factory equipment depreciation; $8,700 for office equipment depreciation. The total overhead costs reported on the schedule of cost of goods manufactured is $.

Blank 1: 18800

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 $.

Blank 1: 4800

The main difference between merchandising and manufacturing companies is that merchandising companies (buy/manufacture) goods ready for sale and manufacturing companies (buy/manufacture) products.

Blank 1: buy Blank 2: produce, make, or manufacture

The efforts of employees who work directly to convert direct materials into the finished product are referred to as .

Blank 1: direct Blank 2: labor

Costs which are crucial parts of the finished product are called .

Blank 1: direct Blank 2: materials, costs, cost, or material

A trend whereby consumers expect to be able to purchase items electronically, whenever and wherever they want is known as .

Blank 1: e-commerce or e commerce

Financial accounting provides information for (internal/external) users, while managerial accounting provides information for (internal/external) decision makers.

Blank 1: external Blank 2: internal

Activities such as purchasing raw materials are considered activities.

Blank 1: materials or material

Activities such as using materials and labor to produce finished products are considered activities.

Blank 1: production

Which of the following are product costs for a manufacturer? (Check all that apply.)

Depreciation on the factory equipment Direct materials

Consider a service company that provides carpet cleaning. Classify the cost of the hourly workers who clean carpets for customers.

Direct

Match the activity with the activity type.

Purchase materials - Materials activity Use materials - Production activity Product sold - Sales activity

Which of the following are indirect costs for the finishing department of a furniture manufacturer? (Check all that apply.)

Rent on the manufacturing facility Electricity cost for the plant Plant manager's salary

Which of the following are period costs for a manufacturer? (Check all that apply.)

Rent on the office building Salary for administrative staff Sales commissions

Factory overhead includes all manufacturing costs except direct materials and direct labor.

T

True or false: Managerial accounting provides information to internal managerial and executive employees who are in charge of a company's business activities.

T

True or false: The main purpose of managerial accounting is to provide relevant information to its managers.

T

Which of the following characteristics describe managerial accounting? (Check all that apply.)

Used to make planning and control decisions Many future projections

Managerial

Uses current performance and future projections

Financial

Uses past performance using historical information

Managerial information:

allows estimates and projections

Managerial accounting information is normally provided to managers

as they request it.

The cost of goods sold for a manufacturer is computed as

beginning finished goods inventory plus cost of goods manufactured minus ending finished goods inventory

Direct materials costs for an automobile manufacturer would include all of the following:

bumpers steering wheels tires

The primary difference between the income statement for a merchandising company and a manufacturing company is in the _____ section.

cost of goods sold

Prime costs consists of:

direct labor and direct materials

Those who work directly on the product to convert raw materials into a finished product are known as

direct labor.

Which of the following are included in Raw materials inventory? (Check all that apply).

direct materials

Production activities include: (Check all that apply.)

direct materials used. production workers assembling products. factory overhead costs.

Conversion costs consist of:

factory overhead and direct labor

Inventory which is completed but not yet sold by a manufacturer is known as

finished goods inventory

Each of the following are examples of factory overhead: (Check all that apply.)

indirect materials indirect labor

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

All of the following are types of e-commerce:

online sales activities text messaging sales activities smartphone sales activities

The fraud triangle shows three factors that push a person to commit fraud and includes ___, pressure, and rationalization.

opportunity

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

orientation

A series of activities that add value to a company's products or services is called:

value chain