Accounting 206 - Chapter 1 || Faultless Answers 100%.
financial accounting correct answers concerned with reporting financial information to external
parties, such as stockholders, creditors, and regulators
managerial accounting correct answers concerned with providing information to managers within
an organization so that they can formulate plans, control operations, and make decisions
cost classifications correct answers consists of variable costs, fixed costs and mixed costs and are
used to assign costs to objects, manufacturing companies, financial statements, predicting cost
behavior, and making decisions
cost object correct answers anything for which cost data are desired and are classified as either
direct or indirect
direct cost correct answers cost that can be easily traced to a specified cost object such as the
oranges or carton that goes into OJ
indirect cost correct answers cost that cannot be easily traced to a specific object such as the
supervisors or electricity used to make sure the OJ is made.
common cost correct answers costs incurred to support a number of cost objects but can't be
traced to them individually and is a type of indirect cost
direct labor correct answers labor costs that can be easily traced to individual units of product
(also called "touch labor")
raw materials (indirect materials) correct answers refer to any materials that are used in the final
product (the finished product from one company can become the raw materials of another
company)
formula for prime cost correct answers =direct materials cost + direct labor cost
, manufacturing overhead correct answers includes all manufacturing costs (such as indirect
materials) except direct materials and direct labor
formula for conversion cost correct answers direct labor + manufacturing overhead
nonmanufacturing costs correct answers consist of selling costs and administrative costs
selling cost correct answers all costs that are sometimes called "order-getting" or "order-filling"
costs such as advertising and packaging
administrative costs correct answers costs associated with the general management of an
organization
when should a cost . be recognized as an expense? correct answers only when a sale takes place
and includes all product costs
product costs correct answers all costs involved in acquiring or making a product and are
released as expenses once the unit is sold (cost of goods sold) and includes direct labor, direct
materials and MOH
how many accounts do product costs flow through on the balance sheet and what are they?
correct answers raw materials, work in process, and finished goods
period costs correct answers all costs that are associated with selling and administrative expenses
what is shown on the balance sheet? correct answers assets, liabilities, equity
what are some examples of assets? correct answers cash, accounts receivables, prepaid expenses,
inventory
financial accounting correct answers concerned with reporting financial information to external
parties, such as stockholders, creditors, and regulators
managerial accounting correct answers concerned with providing information to managers within
an organization so that they can formulate plans, control operations, and make decisions
cost classifications correct answers consists of variable costs, fixed costs and mixed costs and are
used to assign costs to objects, manufacturing companies, financial statements, predicting cost
behavior, and making decisions
cost object correct answers anything for which cost data are desired and are classified as either
direct or indirect
direct cost correct answers cost that can be easily traced to a specified cost object such as the
oranges or carton that goes into OJ
indirect cost correct answers cost that cannot be easily traced to a specific object such as the
supervisors or electricity used to make sure the OJ is made.
common cost correct answers costs incurred to support a number of cost objects but can't be
traced to them individually and is a type of indirect cost
direct labor correct answers labor costs that can be easily traced to individual units of product
(also called "touch labor")
raw materials (indirect materials) correct answers refer to any materials that are used in the final
product (the finished product from one company can become the raw materials of another
company)
formula for prime cost correct answers =direct materials cost + direct labor cost
, manufacturing overhead correct answers includes all manufacturing costs (such as indirect
materials) except direct materials and direct labor
formula for conversion cost correct answers direct labor + manufacturing overhead
nonmanufacturing costs correct answers consist of selling costs and administrative costs
selling cost correct answers all costs that are sometimes called "order-getting" or "order-filling"
costs such as advertising and packaging
administrative costs correct answers costs associated with the general management of an
organization
when should a cost . be recognized as an expense? correct answers only when a sale takes place
and includes all product costs
product costs correct answers all costs involved in acquiring or making a product and are
released as expenses once the unit is sold (cost of goods sold) and includes direct labor, direct
materials and MOH
how many accounts do product costs flow through on the balance sheet and what are they?
correct answers raw materials, work in process, and finished goods
period costs correct answers all costs that are associated with selling and administrative expenses
what is shown on the balance sheet? correct answers assets, liabilities, equity
what are some examples of assets? correct answers cash, accounts receivables, prepaid expenses,
inventory
