ACCOUNTING 526 EXAM 1 NEW VERSION QUESTIONS
AND VERIFIED ANSWERS FOR EXAM SUCCESS
Reporting financial data to external stakeholders, including creditors, regulators,
and stockholders, is the focus of financial accounting.
Managerial accounting is focused with giving managers in an organization the
information they need to create plans, oversee operations, and make decisions.
1. Cost assignment to cost items
2. Cost accounting in manufacturing firms
3. Making financial statements
4. forecasting how costs will react to shifts in activity
5. Making choices ANSWER for cost classification reasons
Direct costs are expenses that may be quickly and easily linked to a product or
other cost item.
Direct labor (DL) and direct material (DM)
Indirect costs are expenses that are difficult to directly link to a product unit or
other cost object.
overhead in manufacturing (Common costs: Indirect expenses incurred to
support multiple cost objects). It is impossible to link these expenses to a
specific cost object.
ANSWER Manufacturing cost classifications: direct materials, direct labor,
and manufacturing overhead
Direct materials are ANSWER raw materials that are easily traceable back to
the product and become an essential component of it.
For example, an automobile radio
Direct labor refers to labor expenses that are easily linked to specific product
units.
, For instance, the compensation given to workers who assemble cars
The term "manufacturing overhead" refers to all manufacturing expenses other
than direct labor and material expenditures. It also includes indirect labor and
materials that are difficult to link to product units.
depreciation of manufacturing equipment, power bills, property taxes, and
insurance premiums associated with running a manufacturing facility
Manufacturing overhead only includes those indirect expenditures related to
running the operation. ANSWER manufacturing overhead examples
Prime cost: ANSWER direct labor and direct material
conversion cost: ANSWER production overhead and direct labor
selling prices - REPLY The expenses required to guarantee the order and
deliver the item
Both direct and indirect expenditures may be incurred.
administrative expenses - REPLY All administrative, clerical, and executive
expenses
Both direct and indirect expenditures may be incurred.
Product costs: List all expenses related to purchasing or producing a product.
These expenses "attach" to a product unit at the time of purchase or
manufacturing, and they remain attached to every product unit for as long as it
is kept in stock pending sale.
raw materials: ANSWER comprises all materials used in the finished product.
work in progress: ANSWER is made up of product units that are not yet
finished and will need further work before they are prepared for client purchase.
final product expenses Completed product units that have not yet been sold to
clients make up ANSWER .
ANSWER Product expenses include of direct materials, direct labor, and
production overhead.
AND VERIFIED ANSWERS FOR EXAM SUCCESS
Reporting financial data to external stakeholders, including creditors, regulators,
and stockholders, is the focus of financial accounting.
Managerial accounting is focused with giving managers in an organization the
information they need to create plans, oversee operations, and make decisions.
1. Cost assignment to cost items
2. Cost accounting in manufacturing firms
3. Making financial statements
4. forecasting how costs will react to shifts in activity
5. Making choices ANSWER for cost classification reasons
Direct costs are expenses that may be quickly and easily linked to a product or
other cost item.
Direct labor (DL) and direct material (DM)
Indirect costs are expenses that are difficult to directly link to a product unit or
other cost object.
overhead in manufacturing (Common costs: Indirect expenses incurred to
support multiple cost objects). It is impossible to link these expenses to a
specific cost object.
ANSWER Manufacturing cost classifications: direct materials, direct labor,
and manufacturing overhead
Direct materials are ANSWER raw materials that are easily traceable back to
the product and become an essential component of it.
For example, an automobile radio
Direct labor refers to labor expenses that are easily linked to specific product
units.
, For instance, the compensation given to workers who assemble cars
The term "manufacturing overhead" refers to all manufacturing expenses other
than direct labor and material expenditures. It also includes indirect labor and
materials that are difficult to link to product units.
depreciation of manufacturing equipment, power bills, property taxes, and
insurance premiums associated with running a manufacturing facility
Manufacturing overhead only includes those indirect expenditures related to
running the operation. ANSWER manufacturing overhead examples
Prime cost: ANSWER direct labor and direct material
conversion cost: ANSWER production overhead and direct labor
selling prices - REPLY The expenses required to guarantee the order and
deliver the item
Both direct and indirect expenditures may be incurred.
administrative expenses - REPLY All administrative, clerical, and executive
expenses
Both direct and indirect expenditures may be incurred.
Product costs: List all expenses related to purchasing or producing a product.
These expenses "attach" to a product unit at the time of purchase or
manufacturing, and they remain attached to every product unit for as long as it
is kept in stock pending sale.
raw materials: ANSWER comprises all materials used in the finished product.
work in progress: ANSWER is made up of product units that are not yet
finished and will need further work before they are prepared for client purchase.
final product expenses Completed product units that have not yet been sold to
clients make up ANSWER .
ANSWER Product expenses include of direct materials, direct labor, and
production overhead.
