Management Accounting Ch01

Reports prepared in financial accounting are general-purpose reports, whereas reports prepared in managerial accounting are usually special-purpose reports.

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Determining the unit cost of manufacturing a product is an output of financial accounting.

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Controlling is the process of determining whether planned goals are being met.

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Decision-making is an integral part of the planning, directing, and controlling functions.

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Manufacturing costs that cannot be classified as direct materials or direct labor are classified as manufacturing overhead.

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Both direct labor cost and indirect labor cost are product costs.

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Raw materials are equal to direct materials minus indirect materials.

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In calculating gross profit for a manufacturing company, the cost of goods manufactured is deducted from net sales.

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When the physical association of raw materials with the finished product is too small to trace in terms of cost, they are usually classified as indirect materials.

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Many companies have significantly lowered inventory levels and costs using just-in-time inventory methods.

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The inventory accounts that show the cost of completed goods on hand and the costs applicable to production that is only partially completed are, respectively

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Given the following data for Harder Company, compute cost of goods manufactured:

• Direct materials used; 120,000
• Direct labor; 200,000
• Manufacturing overhead; 180,000
• Operating expenses; 175,000
• Beginning work in process; 20,000
• Ending work in process; 10,000
• Beginning finished goods;  25,000
• Ending finished goods; 15,000

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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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Wood Company has beginning work in process inventory of $138,000 and total manufacturing costs of $477,000. If cost of goods manufactured is $480,000, what is the cost of the ending work in process inventory?

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Worth Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $866,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Worth Company's cost of goods sold for the year is

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Which of the following is not an element of manufacturing overhead?

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Indirect labor is a:

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Cost of goods available for sale is a step in the calculation of cost of goods sold of:

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A cost of goods manufactured schedule shows beginning and ending inventories for:

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The formula to determine the costs of goods manufacturerd is:

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