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Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.
Determining the unit cost of manufacturing a product is an output of financial accounting.
Controlling is the process of determining whether planned goals are being met.
Decision-making is an integral part of the planning, directing, and controlling functions.
Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.
Both direct labor cost and indirect labor cost are product costs.
Raw materials are equal to direct materials minus indirect materials.
In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.
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