ACC 526 Mid Term Exam

ACC 526 Mid Term Exam Period Costs - CORRECT ANSWER - Costs that are matched with the revenue of a specific time period and charged to expense as incurred. Indirect Labor - CORRECT ANSWER - Work of factory employees that has no physical association with the finished product, or it is impractical to trace the costs to the good produced. Product Costs - CORRECT ANSWER - costs that are a necessary and integral part of producing the finished product Manufacturing Overhead - CORRECT ANSWER - Manufacturing costs that are indirectly associated with the manufacture of the finished product. Managerial Accounting - CORRECT ANSWER - A field of accounting that provides economic and financial information for internal users. Direct Labor - CORRECT ANSWER - The work of factory employees that can be physically and directly associated with converting raw materials into finished goods. Manufacturing Overhead - CORRECT ANSWER - Identify: Factory supervisor's salary Period Costs - CORRECT ANSWER - Identify: Supplies for the general office Direct Materials - CORRECT ANSWER - Identify: Rubber latex purchased for the use in the manufacture of automobile tires Period Costs - CORRECT ANSWER - Identify: Advertising Manufacturing Overhead - CORRECT ANSWER - Identify: Rent on factory equipment Period Costs - CORRECT ANSWER - Identify: Utility cost for the store Period Costs - CORRECT ANSWER - Identify: Salary paid to the company's chief executive officer Manufacturing Overhead - CORRECT ANSWER - Identify: Salary paid to mechanics who maintain and repair factory equipment Direct Labor - CORRECT ANSWER - Identify: Wages paid to assembly-line workers who install interiors in automobiles a. deal with the economic events of an enterprise - CORRECT ANSWER - Financial and managerial accounting are similar in that both: a. deal with the economic events of an enterprise. b. produce general-purpose reports