ACC 241 UPDATED 2026 CORE MAIN QUESTIONS AND
ANSWERS SURE A+
✔✔How is mgrl accounting different from fin accounting? - ✔✔-Not rule based (GAAP),
need based
-More forgiving presentation; no specific report format
-Ad-hoc; done when needed/necessary, not annually/qtrly
-Future focused, not past focused
-Internal facing (mgrs), not external (SEC, IRS, etc)
-Real time decision making, not year-end review
✔✔What is the goal of mgrl accounting? - ✔✔Interpret, analyze, identify, and implement
financial information to effectively and profitably run a company
✔✔What do mgrls accountants do? - ✔✔-Translate plans to budgets
-Provide insights to make decisions
✔✔Income Statement for Mgrl Accounting - ✔✔Sales
- COGS
----------------------
GP/GM
- Op Exp
----------------------
Net Income/Profit
✔✔Product Costs - ✔✔(In factory) The cost attached to a product; becomes an expense
when sold
On Balance Sheet as assets before selling
On Income Statement as COGS after sold
DM, DL, and MOH
✔✔Period Costs - ✔✔(Out of factory) Costs during the period not treated as inventory,
but as expenses
Operating Expenses when incurred
On Income Stmnt as Op Exp
✔✔Direct Cost - ✔✔Traceable to cost object
✔✔Indirect Cost - ✔✔Not easily traceable to cost object; shared or jointly used costs
✔✔MOH - ✔✔Anything in factory that is not DM or DL; aka factory overhead
, IM, IL, MRC
✔✔What helps us understand what is(n't) profitable? - ✔✔Looking at costs across the
value chain
✔✔What do production costs consist of? - ✔✔DM, DL, and MOH
✔✔Value Chain Steps - ✔✔R&D -> Design -> Production/Purchases -> Marketing ->
Distribution -> Customer Service
✔✔Flow of Inventory - ✔✔Raw -> WIP -> FG
After being sold from FG, goods are expensed to COGS
✔✔What should we think when we hear the word "product"? - ✔✔Material, Labor, and
MOH
✔✔How do we calculate operating income? - ✔✔GM - Op Exps
✔✔How do we calculate GM? - ✔✔Sales - COGS
✔✔What and where are the items in Raw Material Inventory? - ✔✔Beg. Bal, Purchases
of DM and IM, End. Bal (left side)
DM and IM used (right side)
✔✔What and where are the items in WIP Inventory? - ✔✔Beg. Bal, DM, DL, MOH, End
Bal (Left Side)
COGM (Right side)
✔✔What and where are the items in FG Inventory? - ✔✔Beg. Bal, COGM, End Bal.
(Left side)
COGS (Right side)
✔✔When do goods become assets? - ✔✔When they are manufactured
✔✔What is Gross Margin (GM) - ✔✔% of GP
How much you're able to sell/product strength
✔✔What is the other way to calculate COGS? - ✔✔Sales x (1-GM%)
ANSWERS SURE A+
✔✔How is mgrl accounting different from fin accounting? - ✔✔-Not rule based (GAAP),
need based
-More forgiving presentation; no specific report format
-Ad-hoc; done when needed/necessary, not annually/qtrly
-Future focused, not past focused
-Internal facing (mgrs), not external (SEC, IRS, etc)
-Real time decision making, not year-end review
✔✔What is the goal of mgrl accounting? - ✔✔Interpret, analyze, identify, and implement
financial information to effectively and profitably run a company
✔✔What do mgrls accountants do? - ✔✔-Translate plans to budgets
-Provide insights to make decisions
✔✔Income Statement for Mgrl Accounting - ✔✔Sales
- COGS
----------------------
GP/GM
- Op Exp
----------------------
Net Income/Profit
✔✔Product Costs - ✔✔(In factory) The cost attached to a product; becomes an expense
when sold
On Balance Sheet as assets before selling
On Income Statement as COGS after sold
DM, DL, and MOH
✔✔Period Costs - ✔✔(Out of factory) Costs during the period not treated as inventory,
but as expenses
Operating Expenses when incurred
On Income Stmnt as Op Exp
✔✔Direct Cost - ✔✔Traceable to cost object
✔✔Indirect Cost - ✔✔Not easily traceable to cost object; shared or jointly used costs
✔✔MOH - ✔✔Anything in factory that is not DM or DL; aka factory overhead
, IM, IL, MRC
✔✔What helps us understand what is(n't) profitable? - ✔✔Looking at costs across the
value chain
✔✔What do production costs consist of? - ✔✔DM, DL, and MOH
✔✔Value Chain Steps - ✔✔R&D -> Design -> Production/Purchases -> Marketing ->
Distribution -> Customer Service
✔✔Flow of Inventory - ✔✔Raw -> WIP -> FG
After being sold from FG, goods are expensed to COGS
✔✔What should we think when we hear the word "product"? - ✔✔Material, Labor, and
MOH
✔✔How do we calculate operating income? - ✔✔GM - Op Exps
✔✔How do we calculate GM? - ✔✔Sales - COGS
✔✔What and where are the items in Raw Material Inventory? - ✔✔Beg. Bal, Purchases
of DM and IM, End. Bal (left side)
DM and IM used (right side)
✔✔What and where are the items in WIP Inventory? - ✔✔Beg. Bal, DM, DL, MOH, End
Bal (Left Side)
COGM (Right side)
✔✔What and where are the items in FG Inventory? - ✔✔Beg. Bal, COGM, End Bal.
(Left side)
COGS (Right side)
✔✔When do goods become assets? - ✔✔When they are manufactured
✔✔What is Gross Margin (GM) - ✔✔% of GP
How much you're able to sell/product strength
✔✔What is the other way to calculate COGS? - ✔✔Sales x (1-GM%)
