ACCT 6521 FINAL UPDATED ACTUAL QUESTIONS AND
CORRECT ANSWERS
Question:
1. Understand the difference in the TYPES of information
classified as: Managerial Accounting
Answer:
Users: Insiders (CEO, Managers, Operatiors)
Information type: Economic and Physical data and financial data
local information, estimates information, Past Present Future
Question:
2. Understand the difference in the TYPES of information
classified as: Financial Accounting
Answer:
Users: Outsiders (Investors, Creditors, Gov't agencies, Analysts)
Information type: Financial data, Global information on the company as a whole,
Past only)
Question:
3. What are manufacturing companies?
Answer:
They make their product from raw materials and sell them to a customer
They start at raw materials inventory
Question:
4. What are product costs (factory/manufacturing
facility/production facility)?
Answer:
direct materials, direct labor, indirect manufacturing overhead (Indirect
materials/labor)
All costs necessary to manufacture the product, including all costs necessary to
maintain/run the manufacturing facility
Question:
5. Debiting inventory and credit cash or accounts payable is
referred to as ______________________
Answer:
Product costs (Assets)
,Question:
6. These costs are always indirect Overhead product costs?
Answer:
-Anything related to the factory:
-rent, manufacturing facility, utilities, insurance, depreciation, manufacturing
equipment depreciation, property tax
Question:
7. These costs go straight to the product; If I am a
manufacturer for furniture, I can see the amount and
various materials needed for furniture like leather, wood,
screws and these costs apply to these?
Answer:
Direct Product Costs
Question:
8. These costs go into products like the glue, cleaning
supplies, maintenance, used in the manufacturing cost
but not directly materials used to assemble but side
pieces that HELP make the whole thing?
Answer:
Indirect Product Costs
Question:
9. Assembly line workers, people that are HANDS ON
making the product?
Answer:
Direct Labor Costs (Product)
Question:
10. Manager of the furniture store; not directly making the
furniture hands on; supervisor; factory workers that keep
the facility running that is NECESSARY to create the
furniture but don't actively work into creating the
product; related to making the product but not hands on
creating?
Answer:
Indirect Labor Costs (Product)
, Question:
11. Advertising costs, executive salaries, marketing expenses,
distribution costs, customer-service costs, etc
•Called operating expenses or selling, general and
administrative expenses
•EXPENSED when incurred?
Answer:
Period Costs (expenses)
Debit Salaries expense
Credit Cash (salaries payable)
Question:
12. State income taxes?
Answer:
Period
Question:
13. Insurance on the manufacturing facilities
Answer:
Product-Indirect
Question:
14. Supplies used in manufacturing
Answer:
Product-indirect
Question:
15. Wages for employees in the assembly department
Answer:
Product-direct
Question:
16. Wages for employees who deliver the product
Answer:
Period
Question:
17. Interest on notes payable
Answer:
Period
CORRECT ANSWERS
Question:
1. Understand the difference in the TYPES of information
classified as: Managerial Accounting
Answer:
Users: Insiders (CEO, Managers, Operatiors)
Information type: Economic and Physical data and financial data
local information, estimates information, Past Present Future
Question:
2. Understand the difference in the TYPES of information
classified as: Financial Accounting
Answer:
Users: Outsiders (Investors, Creditors, Gov't agencies, Analysts)
Information type: Financial data, Global information on the company as a whole,
Past only)
Question:
3. What are manufacturing companies?
Answer:
They make their product from raw materials and sell them to a customer
They start at raw materials inventory
Question:
4. What are product costs (factory/manufacturing
facility/production facility)?
Answer:
direct materials, direct labor, indirect manufacturing overhead (Indirect
materials/labor)
All costs necessary to manufacture the product, including all costs necessary to
maintain/run the manufacturing facility
Question:
5. Debiting inventory and credit cash or accounts payable is
referred to as ______________________
Answer:
Product costs (Assets)
,Question:
6. These costs are always indirect Overhead product costs?
Answer:
-Anything related to the factory:
-rent, manufacturing facility, utilities, insurance, depreciation, manufacturing
equipment depreciation, property tax
Question:
7. These costs go straight to the product; If I am a
manufacturer for furniture, I can see the amount and
various materials needed for furniture like leather, wood,
screws and these costs apply to these?
Answer:
Direct Product Costs
Question:
8. These costs go into products like the glue, cleaning
supplies, maintenance, used in the manufacturing cost
but not directly materials used to assemble but side
pieces that HELP make the whole thing?
Answer:
Indirect Product Costs
Question:
9. Assembly line workers, people that are HANDS ON
making the product?
Answer:
Direct Labor Costs (Product)
Question:
10. Manager of the furniture store; not directly making the
furniture hands on; supervisor; factory workers that keep
the facility running that is NECESSARY to create the
furniture but don't actively work into creating the
product; related to making the product but not hands on
creating?
Answer:
Indirect Labor Costs (Product)
, Question:
11. Advertising costs, executive salaries, marketing expenses,
distribution costs, customer-service costs, etc
•Called operating expenses or selling, general and
administrative expenses
•EXPENSED when incurred?
Answer:
Period Costs (expenses)
Debit Salaries expense
Credit Cash (salaries payable)
Question:
12. State income taxes?
Answer:
Period
Question:
13. Insurance on the manufacturing facilities
Answer:
Product-Indirect
Question:
14. Supplies used in manufacturing
Answer:
Product-indirect
Question:
15. Wages for employees in the assembly department
Answer:
Product-direct
Question:
16. Wages for employees who deliver the product
Answer:
Period
Question:
17. Interest on notes payable
Answer:
Period
