ACCT 2521 EXAM 1 QUESTIONS AND
ANSWERS 100% CORRECT
Financial Accounting - ANSWER is concerned with reporting financial information to external
parties, such as stockholders, creditors, and regulators.
Managerial Accounting - ANSWER is concerned with providing information to managers for
use within the organization
cost object - ANSWER is anything for which cost data are desired—including products,
customers, jobs, and organizational subunits.
direct or indirect
Direct Cost - ANSWER a cost that can be easily and conveniently traced to a specified cost
object
Indirect Cost - ANSWER a cost that cannot be easily and conveniently traced to a specified
cost object
common cost - ANSWER a cost that is incurred to support a number of cost objects but that
cannot be traced to them individually
, a type of indirect cost
raw materials - ANSWER materials that go into the final product
direct materials - ANSWER refers to raw materials that become an integral part of the finished
product and whose costs can be conveniently traced to the finished product
Direct Labor - ANSWER consists of labor costs that can be easily traced to individual units of
product
-touch labor
Manufacturing Overhead - ANSWER includes all manufacturing costs except direct materials
and direct labor
indirect labor and indirect materials
Includes Utilities, Lease, Rent, Depreciation, Insurance, Taxes
Indirect materials - ANSWER Raw materials that do not physically become part of the finished
product or for which it is impractical to trace to the finished product because their physical
association with the finished product is too small.
ANSWERS 100% CORRECT
Financial Accounting - ANSWER is concerned with reporting financial information to external
parties, such as stockholders, creditors, and regulators.
Managerial Accounting - ANSWER is concerned with providing information to managers for
use within the organization
cost object - ANSWER is anything for which cost data are desired—including products,
customers, jobs, and organizational subunits.
direct or indirect
Direct Cost - ANSWER a cost that can be easily and conveniently traced to a specified cost
object
Indirect Cost - ANSWER a cost that cannot be easily and conveniently traced to a specified
cost object
common cost - ANSWER a cost that is incurred to support a number of cost objects but that
cannot be traced to them individually
, a type of indirect cost
raw materials - ANSWER materials that go into the final product
direct materials - ANSWER refers to raw materials that become an integral part of the finished
product and whose costs can be conveniently traced to the finished product
Direct Labor - ANSWER consists of labor costs that can be easily traced to individual units of
product
-touch labor
Manufacturing Overhead - ANSWER includes all manufacturing costs except direct materials
and direct labor
indirect labor and indirect materials
Includes Utilities, Lease, Rent, Depreciation, Insurance, Taxes
Indirect materials - ANSWER Raw materials that do not physically become part of the finished
product or for which it is impractical to trace to the finished product because their physical
association with the finished product is too small.
