MANAGERIAL ACCOUNTING FOR MANAGERS 6TH EDITION 2026 VARIANCE ANALYSIS AND PERFORMANCE EVALUATION PRACTICE SET

MANAGERIAL ACCOUNTING FOR
MANAGERS 6TH EDITION 2026 VARIANCE
ANALYSIS AND PERFORMANCE
EVALUATION PRACTICE SET


◉ Planning
Answer: The process of setting goals and making plans to achieve
them


◉ Control
Answer: Monitoring planning decisions and evaluating activities and
employees


◉ Fixed costs
Answer: Costs that do not change when the volume of activity
changes


◉ Variable costs
Answer: Costs that change in proportion to changes in the volume of
activity

,◉ Direct costs
Answer: Costs that are easily traceable to a single cost object, like a
specific product


◉ Indirect costs
Answer: Costs that cannot be easily or cost-beneficially traced to a
single cost object


◉ Product costs
Answer: Costs necessary to create a product, including direct
materials, direct labor, and factory overhead


◉ Period costs
Answer: Nonproduction costs associated with a time period,
expensed immediately


◉ Raw materials inventory
Answer: Goods acquired to use in making products


◉ Work in process inventory
Answer: Products currently being manufactured but not yet
complete

, ◉ Finished goods inventory
Answer: Completed products that are ready for sale


◉ Prime costs
Answer: Direct materials + Direct labor


◉ Conversion costs
Answer: Direct labor + Factory overhead


◉ Cost of goods manufactured
Answer: Direct materials + Direct labor + Factory overhead incurred
in making products


◉ Raw materials inventory turnover
Answer: Raw materials used / Average raw materials inventory


◉ Days' sales in raw materials inventory
Answer: (Ending raw materials inventory / Raw materials used) ×
365


◉ Cost accounting system