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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.

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.

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

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

Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called

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

Even in today’s automated environment, direct labor is sometimes the appropriate basis for assigning overhead cost to products.

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?

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

In the first stage of activity-based costing, overhead is assigned to products using cost drivers.

Under a job order system, the company assigns costs to each job, or each batch of goods, to fill a specific customer order or replenish inventory.

Manufacturing costs incurred in a job order system are accumulated by debits to Purchases, Factory Labor, and Manufacturing Overhead.

Each debit to Work in Process Inventory must be accompanied by a corresponding posting to one or more job cost sheets.

The first step in activity-based costing is to identify and classify the major activities involved in the manufacture of specific products, and allocate manufacturing overhead to the appropriate cost pools

Manufacturing overhead costs cannot be traced directly to a specific job.

The requisition of factory supplies to production requires a debit to the Manufacturing Overhead account.

Actual overhead costs are debited to the Manufacturing Overhead account.

The entry to record the cost of goods sold includes a debit to Finished Goods Inventory.

A debit balance in the Manufacturing Overhead Account at the end of the period indicates that overhead has been overapplied.

In preparing the costs of goods manufactured schedule in job order costing, manufacturing costs include direct materials used, direct labor used, and manufacturing overhead applied.

Before costs are allocated to the cost pools, the cost drivers for each cost pool must be identified.

A job cost sheet is a form used to record the costs chargeable to a specific job and to determine the total and unit cost of the completed job.

Under ABC, overhead costs are shifted from the high-volume product to the low-volume product.

A job order cost sheet includes

Companies assign raw materials costs to jobs

Activity-based costing does not change the amount of overhead costs, but it does allocate those costs in a more accurate manner.

In a job order cost system, debits to Work in Process Inventory originate from all of the following except

Overhead costs are not allocated by means of arbitrary volume-based cost drivers under ABC

The predetermined overhead rate is computed by dividing estimated

Value-added activities increase the worth of a product or service to customers and involve resource usage that customers are willing to pay for

If annual overhead costs are expected to be $1,000,000 and 200,000 total labor hours are anticipated (80% direct, 20% indirect), the overhead rate based on direct labor hours is a.

 Product-level activities in ABC are required to support or sustain an entire production process.

Just-in-time processing strives to eliminate inventories by using a “pull approach” in manufacturing