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