ACCT 526 Exam 1 Questions With
Correct Answers
concerned with reporting financial information to external parties, such as
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stockholders, creditors, and regulators - CORRECT ANSWER✔✔-financial
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accounting
concerned with providing information to managers within an organization so that
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they can formulate plans, control operations, and make decisions - CORRECT
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ANSWER✔✔-managerial accounting |
purposes of cost classification - CORRECT ANSWER✔✔-1. assigning costs to cost
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objects
2. accounting for costs in manufacturing companies
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3. preparing financial statements
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4. predicting cost behavior in response to changes in activity
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5. making decisions
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costs that can be easily and conveniently traced to a unit of product or other cost
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object
direct material (DM) and direct labor (DL) - CORRECT ANSWER✔✔-direct costs
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, costs that cannot be easily and conveniently traced to a unit of product or other
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cost object |
manufacturing overhead (Common costs: Indirect costs incurred to support a
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number of cost objects. These costs cannot be traced to any individual cost
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object. ) - CORRECT ANSWER✔✔-indirect costs
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Classifications of manufacturing costs - CORRECT ANSWER✔✔-direct materials
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direct labor |
manufacturing overhead |
raw materials that become an integral part of the product and that can be
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conveniently traced directly to it | | | |
ex: a radio installed in an automobile - CORRECT ANSWER✔✔-direct materials
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labor costs that can be easily traced to individual units product
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ex: wages paid to automobile assembly workers - CORRECT ANSWER✔✔-direct
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labor
all manufacturing costs except direct material and direct labor
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- includes indirect materials that cannot be easily traced to units of product
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- includes indirect labor that cannot be easily traced to units of product -
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CORRECT ANSWER✔✔-manufacturing overhead
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Correct Answers
concerned with reporting financial information to external parties, such as
| | | | | | | | | |
stockholders, creditors, and regulators - CORRECT ANSWER✔✔-financial
| | | | | | |
accounting
concerned with providing information to managers within an organization so that
| | | | | | | | | | |
they can formulate plans, control operations, and make decisions - CORRECT
| | | | | | | | | | |
ANSWER✔✔-managerial accounting |
purposes of cost classification - CORRECT ANSWER✔✔-1. assigning costs to cost
| | | | | | | | | | |
objects
2. accounting for costs in manufacturing companies
| | | | | |
3. preparing financial statements
| | |
4. predicting cost behavior in response to changes in activity
| | | | | | | | |
5. making decisions
| |
costs that can be easily and conveniently traced to a unit of product or other cost
| | | | | | | | | | | | | | | |
object
direct material (DM) and direct labor (DL) - CORRECT ANSWER✔✔-direct costs
| | | | | | | | | |
, costs that cannot be easily and conveniently traced to a unit of product or other
| | | | | | | | | | | | | | |
cost object |
manufacturing overhead (Common costs: Indirect costs incurred to support a
| | | | | | | | | |
number of cost objects. These costs cannot be traced to any individual cost
| | | | | | | | | | | | |
object. ) - CORRECT ANSWER✔✔-indirect costs
| | | | |
Classifications of manufacturing costs - CORRECT ANSWER✔✔-direct materials
| | | | | | |
direct labor |
manufacturing overhead |
raw materials that become an integral part of the product and that can be
| | | | | | | | | | | | | |
conveniently traced directly to it | | | |
ex: a radio installed in an automobile - CORRECT ANSWER✔✔-direct materials
| | | | | | | | | |
labor costs that can be easily traced to individual units product
| | | | | | | | | |
ex: wages paid to automobile assembly workers - CORRECT ANSWER✔✔-direct
| | | | | | | | | |
labor
all manufacturing costs except direct material and direct labor
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- includes indirect materials that cannot be easily traced to units of product
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- includes indirect labor that cannot be easily traced to units of product -
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CORRECT ANSWER✔✔-manufacturing overhead
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