IU A100 Exam 1 Latest Test Questions and Answers All Graded A+ Edition.

Managerial Accounting - 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? - 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? - Answer 1. selling expenses-advertising, marketing Three Inventory Accounts - Answer raw materials, work in process, finished goods Fixed Costs - Answer stay the same in total regardless of the volume produced Example: fixed amount of rent Variable Costs - Answer move exactly with level of production Example: more production can occur to buy in bulk The Contribution Margin - Answer Sales - Variable Costs ___________________________ CM - FC ___________________________ Net Income Simple Income Statement - Answer revenue-expenses= net income loss Multi Step Income Statement - Answer Sales - Cost of Goods Sold ______________________________________