IU A100 Exam 1 Questions With correct
Answers
Managerial Accounting - CORRECT ANSWER✔✔-accounting used to
| | | | | | |
provide information and analyses to managers inside the organization to
| | | | | | | | |
assist them in decision making
| | | | |
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
| | | | | | | | | | |
product
3. Manufacturing Overhead-utilities, insurance
| | |
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
| | | | | | | | | | |
the volume produced
| | |
Example: fixed amount of rent
| | | |
, Variable Costs - CORRECT ANSWER✔✔-move exactly with level of
| | | | | | | | |
production |
Example: more production can occur to buy in bulk
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The Contribution Margin - CORRECT ANSWER✔✔-Sales
| | | | | |
- Variable Costs
| |
___________________________
| CM
- FC|
___________________________
| Net Income |
Simple Income Statement - CORRECT ANSWER✔✔-revenue-expenses=
| | | | | |
net income loss
| |
Multi Step Income Statement - CORRECT ANSWER✔✔-Sales
| | | | | |
- Cost of Goods Sold
| | | |
______________________________________
| Gross Profit | |
- Operating Expenses
| |
______________________________________
| Net Income |
Answers
Managerial Accounting - CORRECT ANSWER✔✔-accounting used to
| | | | | | |
provide information and analyses to managers inside the organization to
| | | | | | | | |
assist them in decision making
| | | | |
What three categories go into Product Costs? - CORRECT ANSWER✔✔-
| | | | | | | | |
1. Direct Materials-raw materials that go directly into the product
| | | | | | | | |
2. Direct Labor-all wages and benefits for employees working on the
| | | | | | | | | | |
product
3. Manufacturing Overhead-utilities, insurance
| | |
What are examples of Period Costs? - CORRECT ANSWER✔✔-1. selling
| | | | | | | | | |
expenses-advertising, marketing |
Three Inventory Accounts - CORRECT ANSWER✔✔-raw materials, work
| | | | | | | |
in process, finished goods
| | |
Fixed Costs - CORRECT ANSWER✔✔-stay the same in total regardless of
| | | | | | | | | | |
the volume produced
| | |
Example: fixed amount of rent
| | | |
, Variable Costs - CORRECT ANSWER✔✔-move exactly with level of
| | | | | | | | |
production |
Example: more production can occur to buy in bulk
| | | | | | | |
The Contribution Margin - CORRECT ANSWER✔✔-Sales
| | | | | |
- Variable Costs
| |
___________________________
| CM
- FC|
___________________________
| Net Income |
Simple Income Statement - CORRECT ANSWER✔✔-revenue-expenses=
| | | | | |
net income loss
| |
Multi Step Income Statement - CORRECT ANSWER✔✔-Sales
| | | | | |
- Cost of Goods Sold
| | | |
______________________________________
| Gross Profit | |
- Operating Expenses
| |
______________________________________
| Net Income |
