Cost ACC

Raw materials that can be conveniently and directly associated with a finished product are called materials overhead.

• Direct Material

• Direct Labor

• Indirect Labor

• Manufacturing Overhead

Managerial accounting information generally pertains to an entity as a whole and is highly aggregated.

• True

• False

Determining the unit cost of manufacturing a product is an output of managerial accounting.

• True

• False

What activities and responsibilities are not associated with management's functions?

• Planning

• Directing

• Controlling

• Accountability

The wages of a timekeeper in the factory would be classified as

• Period cost

• Direct Labor

• Indirect labor

• Compliance costs

How have many companies significantly lowered inventory levels and costs?

• They use activity-based costing.

• They utilize a balanced scorecard system.

• They have a just-in-time method.

• They focus on total quality management.

Many companies now focus on reducing defects in finished products with the goal of zero defects. This is called

• Activity Based Costing

• Balanced Scoreboard

• Value Chain

• Total Quality Management

Financial and managerial accounting are similar in that both

• have the same primary users.

• produce general-purpose reports

• have reports that are prepared quarterly and annually.

• deal with the economic events of an enterprise.

An activity that has a direct cause-effect relationship with the resources consumed is a(n)

• cost driver

• overhead rate

• Cost pool

• product activity

Which best describes the flow of overhead costs in an activity-based costing system?

• Overhead costs  direct labor cost or hours  products

• Overhead costs  products

• Overhead costs  activity cost pools  cost drivers  products

• Overhead costs  machine hours  products