chapter 1

Assume that Speedboat Company has beginning finished goods inventory of $10,000; ending finished goods inventory of $150,000; goods available for sale of $210,000; and cost of goods manufactured of $200,000. What is its cost of goods sold?

$60,000

Cold Creek Kayaks, a manufacturing company, has beginning finished goods inventory of $25,000; cost of goods manufactured of $320,000; and ending finished goods inventory of $32,000. What is the cost of goods available for sale?

Cost of goods available for sale $345,000 25000+320000=345000

Which of these phrases describes the fact that employees understand the changing needs and wants of their customers and align their management and operating practices accordingly?

Customer orientation

Which of the following are sections of the Schedule of Cost of Goods Manufactured?

Direct LaborDirect MaterialsFactory OverheadCost of Goods Manufactured

Completed products ready for sale are referred to as:

finished goods inventory

Match each concept with the correct accounting system.

Purpose is to assist managers in planning and control decisions.Managerial Accounting System Structured and follows GAAP.Financial Accounting System

What are prime costs?

Direct Material + Direct Labor

Select the best answer from the option below:

Item #1: Common examples of _____ costs include selling expenses and general office personnel, advertising expenses, and depreciation of office equipment. period

The purposes of managerial accounting are to provide useful information to aid in:

The three main purposes of managerial accounting are to provide useful information to aid in planning future activities, comparing actual to planned results, and determining costs of products and services..

Which is the lean principle where managers and employees seek to uncover waste in business activities including accounting activities such as payroll and disbursements?

Total quality management

A focus on financial, social, and environmental measures is known as

Triple bottom line

The main difference on the income statement between a manufacturer and a merchandiser includes:

items making up cost of goods sold

_____ is when a person commits fraud and feels a low risk of getting caught.

opportunity

From the list below, select the items that are classified as a materials activity.

raw materials beginning inventory raw materials purchases

_____ costs are cost-effectively traced to a cost object.

tem #1: _____ costs are cost-effectively traced to a cost object.Direct

Service companies do not classify costs as product versus period costs because:

their services are not inventoried