Managerial Accounting Chapter 2
Managerial Accounting Chapter 2
Study online at https://quizlet.com/_4fosak
1. manufacturing ______________ report three types of inventory on the balance sheet.
companies
2. inventory (mer- for a company such as Best Buy (consumer electronics) includes all of the costs
chandise) necessary to purchase products and get them onto the store shelves.
3. service compa- Most for-profit organizations can be described as being in one (or more) of three
nies, merchan- categories:_________________, ___________________ and ____________
dising companies
and manufactur-
ing companies
4. work in process ____________is composed of goods partially through the manufacturing process
inventory (not finished yet).
5. merchandising Forever 21, Target, and Kohl's are all examples of ______________
companies
6. service compa- _______________
nies typically do not have an inventory account.
7. raw materials in- Johnson & Johnson, a personal care products manufacturer, converts __________
ventory into finished products.
8. service compa- A law office, an advertising agency, and a hospital are all examples of ___________
nies
9. wholesalers buy products in bulk from producers, marks them up, and resell to retailers.
10. conversion costs are the costs of transforming direct materials into finished goods.
11. period costs include R&D, marketing, distribution and customer service costs.
12. prime costs Direct material plus direct labor equals ___________
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1
, Managerial Accounting Chapter 2
Managerial Accounting Chapter 2
Study online at https://quizlet.com/_4fosak
13. direct costs Steel, tires, engines, upholstery, carpet, and dashboard instruments are used in
the assembly of a car. Since the manufacturer can trace the cost of these materials
(including freight-in and import duties) to specific units or batches of vehicles, they
are considered ______________ of the vehicles.
14. cost object , di- Costs that can be directly traced to a(n)
rect costs ________________ and __________________
15. product costs, as- _______________ are initially treated as ________ on the balance sheet
sets
16. assigned, cost The allocation process results in a less precise cost figure being
objects _______________ to the _____________
.
17. indirect costs, ______________ cannot be directly traced to a _____________
cost object
18. total costs include the costs of all resources used throughout the value chain
19. product costs U.S. GAAP requires companies to use only
_____________________for inventory reported on external financial statements.
20. fringe benefits company-paid ___________ may include health insurance, retirement plan con-
tributions, payroll taxes and paid vacations
21. cost of goods When manufacturing companies sell their finished products, the costs of
sold those finished products are removed from inventory and expensed as
____________________
22. A. Manufacturing Which of the following types of companies would have work in process inventory?
A.
Manufacturing
B.
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2
Managerial Accounting Chapter 2
Study online at https://quizlet.com/_4fosak
1. manufacturing ______________ report three types of inventory on the balance sheet.
companies
2. inventory (mer- for a company such as Best Buy (consumer electronics) includes all of the costs
chandise) necessary to purchase products and get them onto the store shelves.
3. service compa- Most for-profit organizations can be described as being in one (or more) of three
nies, merchan- categories:_________________, ___________________ and ____________
dising companies
and manufactur-
ing companies
4. work in process ____________is composed of goods partially through the manufacturing process
inventory (not finished yet).
5. merchandising Forever 21, Target, and Kohl's are all examples of ______________
companies
6. service compa- _______________
nies typically do not have an inventory account.
7. raw materials in- Johnson & Johnson, a personal care products manufacturer, converts __________
ventory into finished products.
8. service compa- A law office, an advertising agency, and a hospital are all examples of ___________
nies
9. wholesalers buy products in bulk from producers, marks them up, and resell to retailers.
10. conversion costs are the costs of transforming direct materials into finished goods.
11. period costs include R&D, marketing, distribution and customer service costs.
12. prime costs Direct material plus direct labor equals ___________
1/8
1
, Managerial Accounting Chapter 2
Managerial Accounting Chapter 2
Study online at https://quizlet.com/_4fosak
13. direct costs Steel, tires, engines, upholstery, carpet, and dashboard instruments are used in
the assembly of a car. Since the manufacturer can trace the cost of these materials
(including freight-in and import duties) to specific units or batches of vehicles, they
are considered ______________ of the vehicles.
14. cost object , di- Costs that can be directly traced to a(n)
rect costs ________________ and __________________
15. product costs, as- _______________ are initially treated as ________ on the balance sheet
sets
16. assigned, cost The allocation process results in a less precise cost figure being
objects _______________ to the _____________
.
17. indirect costs, ______________ cannot be directly traced to a _____________
cost object
18. total costs include the costs of all resources used throughout the value chain
19. product costs U.S. GAAP requires companies to use only
_____________________for inventory reported on external financial statements.
20. fringe benefits company-paid ___________ may include health insurance, retirement plan con-
tributions, payroll taxes and paid vacations
21. cost of goods When manufacturing companies sell their finished products, the costs of
sold those finished products are removed from inventory and expensed as
____________________
22. A. Manufacturing Which of the following types of companies would have work in process inventory?
A.
Manufacturing
B.
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