acc topic 8

What is the main objective of managerial accounting?

• To analyze and interpret accounting information

• To provide relevant information for maximizing profit and minimizing losses

• To prepare financial statements for external stakeholders

• To monitor and report on financial performance

Which of the following is an example of direct costs?

• Cost of wood used to make guitars

• Salaries of production supervisors

• Wages of assembly line employees

• Heating and lighting the factory

What is the philosophy of continuous process improvement?

• To prepare financial statements for external stakeholders

• To monitor and report on financial performance

• To provide relevant information for maximizing profit and minimizing losses

• To eliminate the source of problems in a process

Which of the following is classified as a conversion cost?

• Leather used to make a baseball glove

• Heating and lighting the factory

• Depreciation of factory plant and equipment

• Wages of assembly line employees

What are period costs?

• Costs of materials used in making the product

• Costs incurred in marketing the product and delivering it to the customer

• Costs of converting materials into a finished product

• Costs incurred in managing the company and not directly related to manufacturing or selling functions

What is the purpose of the statement of cost of goods manufactured?

• To determine the total manufacturing costs incurred

• To determine the cost of goods sold

• To analyze the potential efficiencies and dollar savings of purchasing equipment

• To provide information for setting monthly selling targets and bonuses for sales personnel

What is the purpose of performance reports in managerial accounting?

• To provide relevant information for maximizing profit and minimizing losses

• To monitor and control the cost of direct materials, direct labor, and factory overhead

• To analyze and interpret accounting information

• To prepare financial statements for external stakeholders

What does the statement of financial position for a manufacturing business report?

• Only merchandise inventory

• Selling and administrative expenses

• Materials inventory, work in process inventory, and finished goods inventory

• Cost of goods manufactured and cost of goods sold

What is the cost of goods manufactured for Gauntlet Company in January?

• $60,000

• $70,000

• $80,000

• $90,000

What is the cost of goods sold for Gauntlet Company in January?

• $95,000

• $85,000

• $65,000

• $75,000