CH14: Managerial Acct

Question 1

Mangerial accting

Answer 1

provides financial and non financial info to a businessess managers

Question 2

The purpose of managerial acctg

Answer 2

-determining costs of an orgs products/services

-planning for future activites

-comparing actual results to planned results

Question 3

planning vs controlling

Answer 3

-process of setting foals and making plans to achieve them

-process of monitoring/evaluating an businesses activities and employees

Question 4

what is the cost object

Answer 4

product to which costs are assigned

Question 5

what are direct costs and what does it consist of

Answer 5

costs that can be traced to a cost object (consists of direct mats and labor)

Question 6

direct materials & labor

Answer 6

-material directly needed for items
-labor and salary of ppl directly involved int he production of the product

Question 7

indirect costs

Answer 7

costs that cant be traced to a cost object (consiststs of indirect mats, indirect labor, and factory overhead)

Question 8

what is factory overhead

Answer 8

manufacturing costs that are not traced to a cosr object (anything to do with factory)

Question 9

what does factory overhead include

Answer 9

-indirect mats
-indirect labor
-other utilities (deprecitation, gas)

Question 10

indirect materials

Answer 10

materials that are not used for product production ORRR that can be used for smth other than product

-ex screws, needles, ink

Question 11

indirect labor

Answer 11

labor that cannot be traced
ex: supervisor salary

Question 12

prime costs

Answer 12

direct material + direct labor

Question 13

conversion costs

Answer 13

Direct labor + factory overhead

Question 14

what does product costs consist of

Answer 14

-direct mats
-direct labor
-factory overhead

Question 15

period costs

Answer 15

-selling expenses
-general expenses

Question 16

selling expense examples

Answer 16

-advertising
-sales commissions
-etc

Question 17

manufacturer vs merchandiser

Answer 17

-purchases materials and converts it to products

-buys and sells the goods

Question 18

what inventories does a manufacturing company report

Answer 18

-raw material
-work in process
-finished goods

Question 19

what inventories does a merchandising company report

Answer 19

-merchandise inventory

Question 20

how to find cost of goods sold for a merchaniser

Answer 20

beginning merchandise + merchandise purchased - ending merchandise

Question 21

how to find cost of goods sold for a manufacturer

Answer 21

beginning finished goods + cost of goods manufactured - ending finished goods

Question 22

income statement basic

Answer 22

sales
cost of goods sold
-inventory beginning
-cost of goods merch/manufact
-goods available
-ending inventory
cost of goods solds
gross profit
expenses
net income/loss

Question 23

how to find gross profit

Answer 23

sales- cost of goods sold

Question 24

general and administrative expenses

Answer 24

expenses for manager salaries, office equipment etc

Question 25

selling

Answer 25

ex. advertising

Question 26

cost of goods manufactured sheet

Answer 26

Direct materials
-raw mats beg
+raw mats purchases
=raw mats avail
-raw mats end
=direct mats used
Direct labor
Factory overhead
-utilities
-indirect
-etc
=total factory overhead
Total manufacturing costs
+work in. process beg
total cost of work in process
-work in process end
=cost of goods manufactured

Question 27

how to find direct materials used

Answer 27

raw mats beginning + raw mats purchases - raw mats ending

Question 28

how to find total manufacturing costs

Answer 28

direct mats used + direct labor + factory overhead

Question 29

where does prepaid expenses go ?

Answer 29

assets

Question 30

continous improvement (CI)

Answer 30

ongoign process of making changes to improve to make business more efficient

-new products
-surveys

Question 31

Just -in- time (JIT)

Answer 31

strategy aimed to reduce waste by delerving goods/mats exactly when needed

-order kiosks
-food produced in 3 mins

Question 32

Total Quality Management (TQM)

Answer 32

improving the quailty of business factors
-courteous employees
-clean tablees
standardized food making

Question 33

people /social TBL

Answer 33

focus on people
-laborers
-working conditions
-fair wages

Question 34

enviornment/ planet

Answer 34

focus on the env.
-renewables
-water consumption

Question 35

financial/profit

Answer 35

focus on money aspect
-sales
-revenue
-net income

Question 36

any depreciation is typically a

Answer 36

indirect cost

Question 37

income + fixed costs=

Answer 37

contribution margin