Ivy Software - Managerial Accounting Final Exam || 100%
Error-free Solutions.
managerial accounting correct answers accounting is used to provide information and analyses to
managers inside the organization to assist them in decision-making.
Institute of Management Accountants (IMA) correct answers the professional organization that
promotes the advancement of the management accounting profession
auditing department correct answers reports to CFO / Board of directors
variable costs correct answers costs that change as output changes
fixed costs correct answers costs that remain constant as output changes
Process Costing correct answers A costing method used when essentially homogeneous products
are produced on a continuous basis
overhead application rate correct answers the rate used to allocate overhead to specific
production runs;
total OH / activity level
prime costs correct answers DM + DL
(both are variable costs)
conversion costs correct answers DL + MOH (overhead is indirect and fixed)
indirect costs correct answers costs that are the result of a firm's general operations and are not
directly tied to any specific cost object
Direct Costs correct answers costs that are incurred directly as the result of some specific cost
object / manufactured product
Variable Costing correct answers A costing method that includes only variable manufacturing
costs—direct materials, direct labor, and variable manufacturing overhead—in unit product
costs.
for internal purposes
Absorption Costing correct answers assigns all 3 factors(direct material, direct labor, and both
fixed and variable manufacturing overhead) to inventory
for external purposes; GAAP method
(DL+DM+ VOH+FOH)/units produced
if units produced are less than sold, net income is less than with variable costing
if units produced are more than sold, net income is more than with variable costing
Error-free Solutions.
managerial accounting correct answers accounting is used to provide information and analyses to
managers inside the organization to assist them in decision-making.
Institute of Management Accountants (IMA) correct answers the professional organization that
promotes the advancement of the management accounting profession
auditing department correct answers reports to CFO / Board of directors
variable costs correct answers costs that change as output changes
fixed costs correct answers costs that remain constant as output changes
Process Costing correct answers A costing method used when essentially homogeneous products
are produced on a continuous basis
overhead application rate correct answers the rate used to allocate overhead to specific
production runs;
total OH / activity level
prime costs correct answers DM + DL
(both are variable costs)
conversion costs correct answers DL + MOH (overhead is indirect and fixed)
indirect costs correct answers costs that are the result of a firm's general operations and are not
directly tied to any specific cost object
Direct Costs correct answers costs that are incurred directly as the result of some specific cost
object / manufactured product
Variable Costing correct answers A costing method that includes only variable manufacturing
costs—direct materials, direct labor, and variable manufacturing overhead—in unit product
costs.
for internal purposes
Absorption Costing correct answers assigns all 3 factors(direct material, direct labor, and both
fixed and variable manufacturing overhead) to inventory
for external purposes; GAAP method
(DL+DM+ VOH+FOH)/units produced
if units produced are less than sold, net income is less than with variable costing
if units produced are more than sold, net income is more than with variable costing
