ACCOUNTING 211 EXAM 1 COMPLETE STUDY
GUIDE WITH SOLVED QUESTIONS
◉ managerial accounting.
Answer: field of accounting that provides economic and financial
information for managers and other internal users
◉ main differences between managerial and financial.
Answer: managerial:
-for internal users
-doesn't have to follow GAAP
-detailed reports for a specific decision
-reports as frequently as needed
◉ 3 activities and responsibilities of management.
Answer: 1. planning
2. directing
3. controlling
◉ planning.
Answer: requires management to look ahead and establish
objectives
,-goal is to add value (increase stock price or selling price of
company)
◉ directing.
Answer: coordinating diverse activities and human resources to
produce a smooth-running operation
-implementing planned objectives
-selecting executives, appointing managers and supervisors, and
hiring and training employees
◉ controlling.
Answer: process of keeping the firm's progress on track
-determine whether planned goals are being met and any necessary
changes to get back on track
◉ manufacturing.
Answer: activities and processes that convert raw materials into
finished goods
◉ 3 main types of manufacturing costs.
Answer: 1. direct materials
2. direct labor
3. manufacturing overhead
, ◉ raw materials.
Answer: basic materials and parts that are to be used in the
manufacturing process
◉ direct materials.
Answer: raw materials that can be physically and directly associated
with the finished product during the manufacturing process
◉ direct labor.
Answer: work of factory employees that can be physically and
directly associated with converting raw materials into finished
goods
◉ indirect labor.
Answer: their efforts have no physical associated with the finished
product
ex.) wages of maintenance people, timekeepers, and supervisors
◉ manufacturing overhead.
Answer: costs that are indirectly associated with the manufacture of
the finished product
GUIDE WITH SOLVED QUESTIONS
◉ managerial accounting.
Answer: field of accounting that provides economic and financial
information for managers and other internal users
◉ main differences between managerial and financial.
Answer: managerial:
-for internal users
-doesn't have to follow GAAP
-detailed reports for a specific decision
-reports as frequently as needed
◉ 3 activities and responsibilities of management.
Answer: 1. planning
2. directing
3. controlling
◉ planning.
Answer: requires management to look ahead and establish
objectives
,-goal is to add value (increase stock price or selling price of
company)
◉ directing.
Answer: coordinating diverse activities and human resources to
produce a smooth-running operation
-implementing planned objectives
-selecting executives, appointing managers and supervisors, and
hiring and training employees
◉ controlling.
Answer: process of keeping the firm's progress on track
-determine whether planned goals are being met and any necessary
changes to get back on track
◉ manufacturing.
Answer: activities and processes that convert raw materials into
finished goods
◉ 3 main types of manufacturing costs.
Answer: 1. direct materials
2. direct labor
3. manufacturing overhead
, ◉ raw materials.
Answer: basic materials and parts that are to be used in the
manufacturing process
◉ direct materials.
Answer: raw materials that can be physically and directly associated
with the finished product during the manufacturing process
◉ direct labor.
Answer: work of factory employees that can be physically and
directly associated with converting raw materials into finished
goods
◉ indirect labor.
Answer: their efforts have no physical associated with the finished
product
ex.) wages of maintenance people, timekeepers, and supervisors
◉ manufacturing overhead.
Answer: costs that are indirectly associated with the manufacture of
the finished product
