Managerial Accounting

Front 1

A *blank* cost does not change with the volume of activity. Give an example of a *blank* cost.

Back 1

Fixed; Example is rent for the manufacturer

Front 2

A *blank* cost changes in proportion with the number of items produced. Give an example of a *blank* cost.

Back 2

Variable; Example is Sale commissions.

Front 3

What cost is traceable to a single object?

Back 3

Direct.

Front 4

This cost cannot be easily traced to a single cost object.

Back 4

Indirect.

Front 5

Examples of a direct cost (For a bike manufacturer. List no less than three.

Back 5

Tires, Seats, Handle bars, bike maker, wages, frames, chains, brakes, bike maker benefits.

Front 6

Examples of an indirect cost (Also for a bike manufacturer. List no less than four.

Back 6

Factory accounting, administration, factory rent, Factory light, heat, intranet, insurance on factory.

Front 7

Direct materials, Direct Labor, and Factory overhead are all *blank* cost?

Back 7

Product Cost

Front 8

Product cost are also known as *blank* during and after completion.

Back 8

Inventory

Front 9

Inventory are recorded as *Blank* once they are sold.

Back 9

Cost of goods sold

Front 10

Non production cost that are related to activities linked with a time period than with the completed product are what kind of cost?

Back 10

Period cost

Front 11

Give two examples of period cost.

Back 11

Salaries of sales staff, wages of maintenance workers, advertising expenses, Depreciation on furniture and equipment.

Front 12

What cost are expensed in the period when they happen?

Back 12

Period cost

Front 13

Product cost appear on the income statement as?

Back 13

Cost of goods sold.

Front 14

Product cost appear on the balance sheet as?

Back 14

Inventory

Front 15

Period cost appear on the income statement under *blank* expenses?

Back 15

operating

Front 16

*Blank* are tangible components of a finished product.

Back 16

Direct Materials

Front 17

Direct labor are

Back 17

related directly to the efforts of employees who physically converts materials to finished products.

Front 18

Wages and salaries for direct labor are considered what cost?

Back 18

Direct labor cost; they are readily traced back to finished goods.

Front 19

Assembly workers are *blank* labor.

Back 19

direct

Front 20

Assembly workers salary are *Blank Blank* cost

Back 20

Direct Labor

Front 21

Manufacturing cost that are not direct materials or direct labor that cannot be separately or traced back to finished good are

Back 21

Factory Overhead; Indirect Labor

Front 22

Efforts of production employees who do not work directly with converting direct materials into finished products

Back 22

Indirect labor

Front 23

Materials used in manufacturing and become apart of a final product but rent clearly identified with a specific product unit are

Back 23

indirect materials

Front 24

Name an example of indirect materials

Back 24

Screws, nuts, glue, etc.

Front 25

Indirect labor cost are

Back 25

Related to the cost of workers who assist or supervise the manufacturing process.

Front 26

Give an example of indirect labor cost

Back 26

Employees who maintain manufacturing equipment or salaries of production supervisors.

Front 27

Over time pay to direct labors are included in overhead, because?

Back 27

It would be due to delays, interruptions, or constraints that would not be identifiable to a specific product.

Front 28

Factory Utilities, Factory Rent, Depreciation on factory building, Property taxes on factory buildings, Factory accounting and legal services, maintenance on factory, supervision of employees, repairing equipment are all considered?

Back 28

Factory Overhead

Front 29

Selling and administrative expenses is not included in factory overhead because?

Back 29

They are not incurred in the manufacturing of products.

Front 30

The goods a company acquires to use in making products are?

Back 30

Raw materials inventory.

Front 31

Raw materials can be used in two ways?

Back 31

Direct and Indirect

Front 32

Inventory that being manufactured but not complete?

Back 32

Work in process

Front 33

Completed products ready for sale is what inventory?

Back 33

Finished goods

Front 34

What three inventories appear on the manufacturers balance sheet?

Back 34

Raw materials inventory, work in process inventory, finished goods inventory.

Front 35

What is the difference between the income sheet of a merchandising company and a manufacturing company?

Back 35

The items that make up COGS

Front 36

Beginning finished good inventory+ Cost of goods manufactured= Goods available for sale - Ending finished goods inventory = cost of goods sold. This equation would be laid out on what financial statement?

Back 36

Income statement