ACC 212 Exam #1 Study Guide Questions with Correct Answers Latest Update 2025/2026
Financial Accounting - Answers The field of accounting that focuses on providing information
for external decision makers.
Manegerial Accounting - Answers Provides economic and financial information for managers
and other internal users.
Manufacturing Costs - Answers consists of activities and processes that convert raw materials
into finished goods
Direct Materials - Answers Raw materials that can be physically and directly associated with
manufacturing the finished product.
Raw Materials - Answers the basic material from which a product is made.
Indirect Materials - Answers Not physically part of the finished product or they are an
insignificant part of finished product in terms of cost.
Considered part of manufacturing overhead.
Direct Labor - Answers the work of factory employees that can be physically and directly
associated with converting raw materials into finished goods
Indirect Labor - Answers Work of factory employees that has no physical association with the
finished product or for which it is impractical to trace the costs to the goods produced.
Manufacturing Overhead - Answers consists of costs that are indirectly associated with the
manufacture of the finished product
Product Costs - Answers direct materials, direct labor, manufacturing overhead
Period Costs - Answers non-manufacturing costs; includes all selling and administrative
expenses charged to expense as incurred
Total Work in porcess - Answers 1. cost of beginning work in process
2. total costs manufacturing overhead in current year
Total Manufacturing Costs - Answers The sum of direct materials, direct labor, and
manufacturing overhead incurred in the current period.
Cost of Goods Manufactured - Answers + Beg WIP
+ DM used (Bed RM + RM Purchase - End RM)
+ DL
Financial Accounting - Answers The field of accounting that focuses on providing information
for external decision makers.
Manegerial Accounting - Answers Provides economic and financial information for managers
and other internal users.
Manufacturing Costs - Answers consists of activities and processes that convert raw materials
into finished goods
Direct Materials - Answers Raw materials that can be physically and directly associated with
manufacturing the finished product.
Raw Materials - Answers the basic material from which a product is made.
Indirect Materials - Answers Not physically part of the finished product or they are an
insignificant part of finished product in terms of cost.
Considered part of manufacturing overhead.
Direct Labor - Answers the work of factory employees that can be physically and directly
associated with converting raw materials into finished goods
Indirect Labor - Answers Work of factory employees that has no physical association with the
finished product or for which it is impractical to trace the costs to the goods produced.
Manufacturing Overhead - Answers consists of costs that are indirectly associated with the
manufacture of the finished product
Product Costs - Answers direct materials, direct labor, manufacturing overhead
Period Costs - Answers non-manufacturing costs; includes all selling and administrative
expenses charged to expense as incurred
Total Work in porcess - Answers 1. cost of beginning work in process
2. total costs manufacturing overhead in current year
Total Manufacturing Costs - Answers The sum of direct materials, direct labor, and
manufacturing overhead incurred in the current period.
Cost of Goods Manufactured - Answers + Beg WIP
+ DM used (Bed RM + RM Purchase - End RM)
+ DL
