ACC 202: Managerial Accounting – Flashcards
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These costs are included in a recent summary of data for a company: - advertising expense: $85,000; - depreciation expense- factory building: $133,000; - direct labor: $250,000; - direct material used: $300,000; - factory utilities: $105,000; - sales salaries expense: $150,000. Determine the dollar amount of manufacturing overhead costs.
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$238,000
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Managerial accounting is an activity that provides financial and nonfinancial information to an organization's managers and other internal decision makers.
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True
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Raw materials costs are classified as manufacturing overhead.
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False
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The total cost of a finished product does not generally contain equal amounts of materials, labor, and overhead costs.
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True
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Both direct labor cost and indirect labor cost are product costs.
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True
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Indirect materials and indirect labor are both *inventoriable costs (*costs that are accounted for in Raw-Materials Inventory, Work-In-Process Inventory or Finished Goods Inventory).
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True
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The major reporting standard for presenting managerial accounting information is...
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Relevance
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The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is...
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Direct labor
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Manufacturing costs include
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direct materials, direct labor, and manufacturing overhead.
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Which one of these would be LEAST LIKELY to be classified as a direct material?
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Lubricant for a ball-bearing joint for a large crane.
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The wages of a janitor within the factory would be classified as
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indirect labor.
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As current technology changes manufacturing processes, it is likely that direct
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labor will decrease.
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Which of the following is not classified as direct labor?
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Supervisors salary in a production factory.
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Nuts, bolts, screws, oil and grease used occasionally in a production process are classified as
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indirect materials.
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The product cost that is most difficult to associate with a product is
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manufacturing overhead.
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Manufacturings costs that cannot be classified as either direct materials or direct labor are known as
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manufacturing overhead.
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Which one of the following is an example of a period cost?
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A manager's salary for work that is done in the corporate head office.
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Product costs are also called
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Inventoriable costs.
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For inventoriable costs to become expenses under the matching principle,
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the product to which they attach must be sold.
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Penner Company reported total manufacturing costs of $410,000, manufacturing overhead totaling $78,000, and direct materials totaling $96,000. How much is direct labor cost?
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$236,000
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What term describes all business processes associated with providing a product or service?
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The value chain.
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What is "balanced" in the balanced scoreboard approach?
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The emphasis on financial and non financial performance measurements.
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Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called
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total quality management.
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For a manufacturing company, which of the following is an example of a period cost rather than a product cost?
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Wages of salespersons.
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The inventory accounts that show the costs of completed goods on hand and the costs applicable to production that is only partially completed are, respectively,
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Finished-Goods Inventory and Work-In-Process Inventory
