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