IU A100 Exam 1 Questions With correct Answers.

IU A100 Exam 1 Questions With correct
Answers

Managerial Accounting - CORRECT ANSWER✔✔-accounting used to
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provide information and analyses to managers inside the organization to
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assist them in decision making
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What three categories go into Product Costs? - CORRECT ANSWER✔✔-
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1. Direct Materials-raw materials that go directly into the product
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2. Direct Labor-all wages and benefits for employees working on the
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product
3. Manufacturing Overhead-utilities, insurance
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What are examples of Period Costs? - CORRECT ANSWER✔✔-1. selling
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expenses-advertising, marketing |




Three Inventory Accounts - CORRECT ANSWER✔✔-raw materials, work
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in process, finished goods
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Fixed Costs - CORRECT ANSWER✔✔-stay the same in total regardless of
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the volume produced
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Example: fixed amount of rent
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, Variable Costs - CORRECT ANSWER✔✔-move exactly with level of
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production |




Example: more production can occur to buy in bulk
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The Contribution Margin - CORRECT ANSWER✔✔-Sales
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- Variable Costs
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___________________________
| CM
- FC|




___________________________
| Net Income |




Simple Income Statement - CORRECT ANSWER✔✔-revenue-expenses=
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net income loss
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Multi Step Income Statement - CORRECT ANSWER✔✔-Sales
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- Cost of Goods Sold
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______________________________________
| Gross Profit | |




- Operating Expenses
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______________________________________
| Net Income |