A field of accounting that provides economic and financial information for managers and other internal user is called:

• Managerial Accounting

• Financial Accounting

• Cost Accounting

• Auditing

Involves the measuring, recording, and reporting of product costs. From the data accumulated, companies determine both the total cost and the unit cost of each product.

• Managerial Accounting

• Financial Accouting

• Cost Accouting

• Management Services

As a result of the Sarbanes-Oxley Act of 2002, managerial accounting reports must now comply with generally accepted accounting principles (GAAP).

• True

• False

Manufacturing consists of activities and processes that convert raw materials into finished goods. Manufacturing costs are typically classified into Direct Materials, Direct Labor and Manufacturing Overhead

• True

• False

Raw materials that can be physically and directly associated with the finished product during the manufacturing process are called:

• Direct Materials

• Indirect Materials

• Variable Cost

• Manufacturing Overhead

The work of factory employees that can be physically and directly associated with converting raw materials into finished goods is called:

• Direct Labor

• Indirect Labor

• Variable Cost

• Manufacturing Overhead

A costs that are matched with the revenue of a specific time period rather than included as part of the cost of a salable product. These are non manufacturing costs which includes selling and administrative expenses.

• Period Cost

• Product Cost

• Fixed Cost

• Variable Cost

A report that provides details on cost elements used in calculating cost of goods manufactured.

• Cost of Goods Manufactured

• Cost of Goods Sold

• Job Cost Sheet

• None of the above

This refers to all activities associated with providing a product or service.

• Value Chain

• Production

• Sales and Marketing

• Customer Relation

Companies allocate overhead based on each product’s use of activities in making the product. For example, companies can keep track of their cost of setting up machines for each batch of a production process. Then companies can allocate part of the total set-up cost to a particular product based on the number of set-ups that product required. This type of product costing is called.

• Job Order Costing

• Process Costing

• Hybrid Costing

• Activity Based Costing