Managerial Accounting Exam 1 Questions with well revised answers
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Course
Managerial Accounting
Institution
Managerial Accounting
Manufacturing overhead - correct answer all manufacturing costs except direct materials and direct labor; i.e. indirect manufacturing costs, maintenance and reparis on production equipment, property taxes, depreciation, insurance on manufacturing facilities
Direct Materials - correct answer Mate...
Managerial Accounting Exam 1
Manufacturing overhead - correct answer all manufacturing costs except direct materials and direct
labor; i.e. indirect manufacturing costs, maintenance and reparis on production equipment, property
taxes, depreciation, insurance on manufacturing facilities
Direct Materials - correct answer Materials that become an integral part of a finished product and whose
costs can be conveniently traced to it.
Direct Labor - correct answer Factory labor costs that can be easily traced to individual units of product.
Also called touch labor.
Nonmanufacturing Costs - correct answer Selling costs and Administrative costs.
Selling Costs - correct answer All costs that are incurred to secure customer orders and get the finished
product or service into the hands of the customer
Administrative Costs - correct answer All executive, organizational, and clerical costs associated with the
general management of an organization rather than with manufacturing or selling.
Product Costs - correct answer All costs that are involved in acquiring or making a product. In the case of
manufactured goods, these costs consist of direct materials, direct labor, and manufacturing overhead.
Also see Inventoriable costs.
Period Costs - correct answer The costs that are not product costs. All selling and administrative
expenses are treated as period costs. i.e sales commissions, advertising, executive salaries, public
relations, and the rental costs of administrative offices.
Prime Cost - correct answer Direct materials cost plus direct labor cost.
Conversion Cost - correct answer Direct labor cost plus manufacturing overhead cost.
Cost behavior - correct answer the way in which a cost reacts to changes in the level of activity
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