Exam 17: Managerial Accounting and Cost Concepts

All product costs are expensed in the period in which they are paid in cash.

Which of the following should not be included in the computation of cost of goods manufactured?

The cost of goods manufactured is added to the beginning balance of finished goods inventory to obtain the total cost of goods available for sale.

Management accounting activities

Overhead costs are not recorded in the Work in Process Inventory account.

Managerial accounting's main emphasis is on full and accurate accounting for and disclosure of a company's operating results.

Inventoriable cost is a synonym of product cost.

Direct materials cost is a fixed cost because it always occurs in a production process.

Period costs flow through three types of inventory accounts before becoming part of the cost of goods sold amount.

Identify and explain the important questions a manager must address before preparing a managerial report.(Hint: Think "w's.")

The two primary types of cost behavior are fixed and variable.

Accounting rules applicable to management accounting are the same as those used for financial accounting.

Which of the following is the formula used to compute product unit cost?

Both direct labor and indirect labor are recorded in the Work in Process Inventory account as the product is being manufactured.

Direct costs can be conveniently traced to a cost object.

Managerial accounting information is primarily used by

Management accounting reports

At the end of an accounting period,the balance in the Finished Goods Inventory account is the sum of costs of products completed and the cost of goods sold as of that date.

Total manufacturing costs and the change in the Work in Process Inventory are used to compute the cost of goods sold.

Variable costs per unit change in an inversely proportional rate to changes in volume.