Chapter 16 Flashcards
a type of information that management uses in conducting daily operations and in planning future operations and that includes both historical and estimated data is ___
management accounting
a department that provides services, assistance, and advice to other departments directly involved in the basic objectives of the organization is a
staff department
managerial accounting reports use two types of information.
historical data
estimated data
the sales department would be considered a ___ department
staff
the machining department would be considered a ___ department
line
manufacturing costs are classified into 2 categories in terms of the decision-making needs of management
direct
indirect
the development of organizational objectives and the translation of these objectives into courses of action is called
planning
work in process consists of three costs of resources that have entered the manufacturing process on unfinished products
direct material
direct labor
factory overhead
the term used to describe the cost of materials that are an integral part of total product cost is
direct materials cost
overhead costs are _d/i__ costs
indirect
direct labor and factory overhead are considered ___ costs of the product
conversion
direct labor and material are considered ___ costs of the product
prime
the information that allows management to isolate significant departures from plans for further investigation and possible remedial action is called
feedback
The primary difference between the income statements of a merchandiser and manufacturer is
COGM
indirect materials, indirect labor, and production-equipment depreciation expense are examples of
factory overhead
the cost of finished products on hand that have not been sold is called
finished goods
the cost of a machine operators wages in a tool manufacturing plant would be a ___i/d cost
direct
cost which make up the cost of manufacturing a product are called ___ costs
product / manufactuing
costs which are incurred in operating the selling and administrative operations of a business are called ___ costs
period
the cost of the president of the company is part of the conversion cost for a manufactured product (t or f)
false
the accounting report that accumulates the product costs originating with inventory and ending with the cost of goods sold is the ____
statement of goods manufactured
D or I: materials used for specific jobs
direct
D or I: factory materials incurred on non-specific jobs
indirect
D or I: cash paid for factory utilities costs incurred
indirect
D or I: rental cost on a factory building
indirect
D or I: design cost for a new product line
indirect
D or I: cost accounting department salaries
direct
D or I: factory labor incurred on specific jobs
direct
D or I: salary of vice-president of manufacturing
indirect
Period or Product: materials used for specific jobs
Product
Period or Product: factory materials incurred on non-specific jobs
Product
Period or Product: cash paid for factory utilities costs incurred
Product
Period or Product: rental cost on a factory building
Product
Period or Product: design cost for a new product line
Product
Period or Product: cost accounting department salaries
Period
Period or Product: factory labor incurred on specific jobs
Product
Period or Product: salary of vice-president of manufacturing
Product
A department or unit directly involved in the basic objectives of the organization is a
line department
the roasting department is a (line or staff) function at a coffee manufacturer
line
a payment of cash or its equivalent or the commitment to pay cash in the future for the purpose of generating revenues is termed ___
cost
the five basic phases in the management process are
- planning
- directing
- controlling
- improving
- decision making
unlike financial accounting statements, managerial accounting reports do not have to follow generally accepted accounting procedures because they are only used by
management
monitoring the operating results of implemented plans and comparing the actual results with the expected results is called
controlling
the philosophy of controlling operations by comparing actual and expected results is called
management by exception
the measurement of a variety of issues including levels of emissions and their impact on product costs are the concerns of ____ accountants
environmental
the three stages of inventory for a manufacturing company are
- raw material
- work in process
- finished goods
the cost accounting department for a manufacturer would be a (line or staff) department
staff
costs associated with manufacturing a product are called ___ costs
product
in management accounting reports, selling and administrative expenses are classified as ___ costs
period
costs that can be traced to a cost object are called __ costs
direct
costs that cannot be traced to a specific cost object are called ___ costs
indirect
prime costs are the sum of the following two costs for a manufacturer
direct material
direct labor
the cost of the manufactured product sold is called
COGS
the cost of windshields for an auto manufacturer would be a(n) direct of indirect cost?
direct
Direct or Indirect: materials for general factory use
Indirect
Direct or Indirect: factory labor incurred on specific jobs
Direct
Direct or Indirect: rental cost on a sales showroom
Direct
Direct or Indirect: advertising costs for a new product line
Direct
Direct or Indirect: cost accounting department salaries
Direct
Direct or Indirect: shipping expenses for goods sold FOB destination
Direct
Direct or Indirect: cost of hard drives for a computer manufacturer
Direct
Direct or Indirect: cost of health insurance for sales workers
Indirect
Product or Period: materials for general factory use
Product
Product or Period: factory labor incurred on specific jobs
Product
Product or Period: rental cost on a sales showroom
Period
Product or Period: advertising costs for a new product line
Period
Product or Period: cost accounting department salaries
Period
Product or Period: shipping expenses for goods sold FOB destination
Period
Product or Period: cost of hard drives for a computer manufacturer
Product
Product or Period: cost of health insurance for sales workers
Product
