ACCT 526 Midterm Exam Questions with 100% Correct Answers

Period costs Correct Answer Costs that are matched with the revenue of a specific time period and charged to expense as incurred. Indirect labor Correct Answer Work of factory employees that has no physical association with the finished product, or it is impractical to trace the costs to the goods produced. Product costs Correct Answer Costs that are a necessary and integral part of producing the finished product. Manufacturing overhead Correct Answer costs that are indirectly associated with the manufacture of the finished product. Managerial accounting Correct Answer A field of accounting that provides economic and financial information for internal users. Direct labor Correct Answer The work of factory employees that can be physically and conveniently associated with converting raw materials into finished goods. Manufacturing overhead Correct Answer identify: Factory supervisor's salary Period costs Correct Answer identify: Supplies for the general office Direct materials Correct Answer identify: Rubber latex purchased for the use in the manufacture of automobile tires Period costs Correct Answer identify: advertising Manufacturing overhead Correct Answer identify: Rent on factory equipment Period costs Correct Answer identify: Utility cost for the store Period costs Correct Answer identify: Salary paid to the company's chief executive officer Manufacturing overhead Correct Answer identify: Salary paid to mechanics who maintain and repair factory equipment Direct labor Correct Answer identify: Wages paid to assembly-line workers who install interiors in automobiles A. Deal with the economic events of an enterprise. Correct Answer Financial and managerial accounting are similar in that both: A. Deal with the economic events of an enterprise. B. Produce general-purpose reports.