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ACG2071 - Exam 1 (Ch 14,15,17) (1).
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ACG2071 - Exam 1 (Ch 14,15,17) (1).
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ACG2071 - Exam 1 (Ch 14,15,17)managerial accounting - ANS-provides financial and nonfinancial info to organization managers
and other decision makers
managerial accounting description - ANS-1. users/decision makers = internal (employees,
managers, etc)
2. purpose of info = help managers make planning/control decisions
3. reporting flexibility = very (no GAAP)
4. info timeliness = available fast w/o audit
5. time dimension = future
6. info focus = projects, processes, divisions
7. info nature = monetary and non monetary
internal controls - ANS-protect assets
ensure reliable accounting
promote efficient operations
uphold company policies
fixed cost - ANS-does not change with activity level
variable cost - ANS-changes with activity
direct cost - ANS-traceable to single cost object
indirect cost - ANS-not traceable to single cost object
incl factory (manufacturing) overhead
product cost - ANS-FACTORY COSTS
direct materials, direct labor, overhead
inventory until sold
asset on BALANCE SHEET
aka: inventoriable cost
period cost - ANS-NONFACTORY COSTS
selling and general admin expenses
expensed as incurred on INCOME ST
expenses not attached to product
direct materials cost - ANS-expenditures for direct materials that are separately and readily
traced through the manufacturing process to finished goods
, direct labor cost - ANS-wages and salaries for direct labor that are separately and readily traced
through the manufacturing process to finished goods
factory overhead - ANS-all manufacturing costs that are not direct materials or direct labor and
cannot be traced
merchandisers - ANS-buy and sell finished goods
manufacturers - ANS-buy raw materials, produce and sell finished goods
difference btwn merchandisers and manufacturers - ANS-inventory
raw materials inventory - ANS-ON BALANCE SHEET
materials waiting to be processed
can be direct or indirect materials
work in process inventory - ANS-ON BALANCE SHEET
partially completed objects
material to which some labor and/or overhead have been added
finished goods inventory - ANS-ON BALANCE SHEET
completed goods for sale
goods that are completed and sold recorded on... - ANS-income statement
unused, incomplete, unsold goods are recorded on.... - ANS-balance sheet
merchandiser cost of goods sold = - ANS-begin merchandise inventory
+ cost of goods purchased
- end merchandise inventory
manufacturer cost of goods sold = - ANS-begin finished goods inventory
+ cost of goods manufactured
- end finished goods inventory
schedule of cost of goods manufactured - ANS-summarizes types and amounts of costs
incurred in a companys production process
steps to schedule of cost of goods manufactured - ANS-1. compute direct materials used
2. compute direct labor costs used
3. compute total factory overhead costs
4. compute cost of goods manufactured
total manufacturing costs = - ANS-direct materials + direct labor + overhead
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