Exam 2

Question 1

Managerial Accounting

Answer 1

The use of providing information for internal users. Reports tend to be special-purpose reports that relate to specific decisions.
The information pertains to subunits of the business and can be very detailed extending beyond the usual double-entry accounting to any relevant data.

Question 2

Direct Materials (DM)

Answer 2

Raw materials that can be physically and directly associated with the finished product.

Question 3

Direct Labor (DL)

Answer 3

The work of factory employees that can be physically and directly associated with the finished product.

Question 4

Manufacturing Overhead (MOH)

Answer 4

(Also known as factory overhead)
The indirect manufacturing costs and burden. Overhead consists of all costs that are indirectly associated with the manufacture of the finished product.
Ex: Indirect materials, indirect labor, factory depreciation, factory insurance, factory taxes, factory maintenance.