Chapter 16 Flashcards
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
a department that provides services, assistance, and advice to other departments directly involved in the basic objectives of the organization is a
staff department
managerial accounting reports use two types of information.
historical data
estimated data
the sales department would be considered a ___ department
staff
the machining department would be considered a ___ department
line
manufacturing costs are classified into 2 categories in terms of the decision-making needs of management
direct
indirect
the development of organizational objectives and the translation of these objectives into courses of action is called
planning
work in process consists of three costs of resources that have entered the manufacturing process on unfinished products
direct material
direct labor
factory overhead
the term used to describe the cost of materials that are an integral part of total product cost is
direct materials cost
overhead costs are _d/i__ costs
indirect
direct labor and factory overhead are considered ___ costs of the product
conversion
direct labor and material are considered ___ costs of the product
prime
the information that allows management to isolate significant departures from plans for further investigation and possible remedial action is called
feedback
The primary difference between the income statements of a merchandiser and manufacturer is
COGM
indirect materials, indirect labor, and production-equipment depreciation expense are examples of
factory overhead
the cost of finished products on hand that have not been sold is called
finished goods
the cost of a machine operators wages in a tool manufacturing plant would be a ___i/d cost
direct
cost which make up the cost of manufacturing a product are called ___ costs
product / manufactuing
costs which are incurred in operating the selling and administrative operations of a business are called ___ costs
period
the cost of the president of the company is part of the conversion cost for a manufactured product (t or f)
false
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
D or I: materials used for specific jobs
direct
D or I: factory materials incurred on non-specific jobs
indirect
D or I: cash paid for factory utilities costs incurred
indirect
