Chapter 16 Flashcards Preview

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Flashcards in Chapter 16 Deck (70):
1

a type of information that management uses in conducting daily operations and in planning future operations and that includes both historical and estimated data is ___

management accounting

2

a department that provides services, assistance, and advice to other departments directly involved in the basic objectives of the organization is a

staff department

3

managerial accounting reports use two types of information.

historical data
estimated data

4

the sales department would be considered a ___ department

staff

5

the machining department would be considered a ___ department

line

6

manufacturing costs are classified into 2 categories in terms of the decision-making needs of management

direct
indirect

7

the development of organizational objectives and the translation of these objectives into courses of action is called

planning

8

work in process consists of three costs of resources that have entered the manufacturing process on unfinished products

direct material
direct labor
factory overhead

9

the term used to describe the cost of materials that are an integral part of total product cost is

direct materials cost

10

overhead costs are _d/i__ costs

indirect

11

direct labor and factory overhead are considered ___ costs of the product

conversion

12

direct labor and material are considered ___ costs of the product

prime

13

the information that allows management to isolate significant departures from plans for further investigation and possible remedial action is called

feedback

14

The primary difference between the income statements of a merchandiser and manufacturer is

COGM

15

indirect materials, indirect labor, and production-equipment depreciation expense are examples of

factory overhead

16

the cost of finished products on hand that have not been sold is called

finished goods

17

the cost of a machine operators wages in a tool manufacturing plant would be a ___i/d cost

direct

18

cost which make up the cost of manufacturing a product are called ___ costs

product / manufactuing

19

costs which are incurred in operating the selling and administrative operations of a business are called ___ costs

period

20

the cost of the president of the company is part of the conversion cost for a manufactured product (t or f)

false

21

the accounting report that accumulates the product costs originating with inventory and ending with the cost of goods sold is the ____

statement of goods manufactured

22

D or I: materials used for specific jobs

direct

23

D or I: factory materials incurred on non-specific jobs

indirect

24

D or I: cash paid for factory utilities costs incurred

indirect

25

D or I: rental cost on a factory building

indirect

26

D or I: design cost for a new product line

indirect

27

D or I: cost accounting department salaries

direct

28

D or I: factory labor incurred on specific jobs

direct

29

D or I: salary of vice-president of manufacturing

indirect

30

Period or Product: materials used for specific jobs

Product

31

Period or Product: factory materials incurred on non-specific jobs

Product

32

Period or Product: cash paid for factory utilities costs incurred

Product

33

Period or Product: rental cost on a factory building

Product

34

Period or Product: design cost for a new product line

Product

35

Period or Product: cost accounting department salaries

Period

36

Period or Product: factory labor incurred on specific jobs

Product

37

Period or Product: salary of vice-president of manufacturing

Product

38

A department or unit directly involved in the basic objectives of the organization is a

line department

39

the roasting department is a (line or staff) function at a coffee manufacturer

line

40

a payment of cash or its equivalent or the commitment to pay cash in the future for the purpose of generating revenues is termed ___

cost

41

the five basic phases in the management process are

1. planning
2.directing
3.controlling
4.improving
5.decision making

42

unlike financial accounting statements, managerial accounting reports do not have to follow generally accepted accounting procedures because they are only used by

management

43

monitoring the operating results of implemented plans and comparing the actual results with the expected results is called

controlling

44

the philosophy of controlling operations by comparing actual and expected results is called

management by exception

45

the measurement of a variety of issues including levels of emissions and their impact on product costs are the concerns of ____ accountants

environmental

46

the three stages of inventory for a manufacturing company are

1. raw material
2. work in process
3. finished goods

47

the cost accounting department for a manufacturer would be a (line or staff) department

staff

48

costs associated with manufacturing a product are called ___ costs

product

49

in management accounting reports, selling and administrative expenses are classified as ___ costs

period

50

costs that can be traced to a cost object are called __ costs

direct

51

costs that cannot be traced to a specific cost object are called ___ costs

indirect

52

prime costs are the sum of the following two costs for a manufacturer

direct material
direct labor

53

the cost of the manufactured product sold is called

COGS

54

the cost of windshields for an auto manufacturer would be a(n) direct of indirect cost?

direct

55

Direct or Indirect: materials for general factory use

Indirect

56

Direct or Indirect: factory labor incurred on specific jobs

Direct

57

Direct or Indirect: rental cost on a sales showroom

Direct

58

Direct or Indirect: advertising costs for a new product line

Direct

59

Direct or Indirect: cost accounting department salaries

Direct

60

Direct or Indirect: shipping expenses for goods sold FOB destination

Direct

61

Direct or Indirect: cost of hard drives for a computer manufacturer

Direct

62

Direct or Indirect: cost of health insurance for sales workers

Indirect

63

Product or Period: materials for general factory use

Product

64

Product or Period: factory labor incurred on specific jobs

Product

65

Product or Period: rental cost on a sales showroom

Period

66

Product or Period: advertising costs for a new product line

Period

67

Product or Period: cost accounting department salaries

Period

68

Product or Period: shipping expenses for goods sold FOB destination

Period

69

Product or Period: cost of hard drives for a computer manufacturer

Product

70

Product or Period: cost of health insurance for sales workers

Product