ACG 2071 FSU EXAM 1| QUESTIONS AND ANSWERS |
UPDATED RATED A+| 2026
planning
se ng goals and objec ves for organiza ons. Think: what are they wan ng to accomplish?
direc ng
overseeing the day-to-day opera ons. Think: where can we improve? are we achieving goals?
controlling
evalua ng results and making adjustments
managerial accoun ng focuses on...
relevant informa on that affects future opera ons
Sustainability
the ability to meet the needs of the present without compromising the ability of future
genera ons to meet their own needs
What are the three pillars of sustainability
3Ps: people (social), planet (environment), and profit (economic)
What is ethical behavior?
it means to do the right thing, regardless of the consequences. Not all unethical behavior is
illegal but all illegal behavior is unethical.
What are 2 ways to generate profit?
Increase revenues or sales, and/or decrease expenses/costs
What are 3 types of companies?
service (intangible), merchandising (reselling), and manufacturing (producing)
What are the 3 types of inventory for manufacturing companies?
Raw materials, work in progress, and finished goods
What is a cost object?
, this is anything that we as a company need to know and figure out the cost of
What is a direct costs?
any cost that we can TRACE DIRECTLY to a cost object.
What is an indirect cost?
any cost that we CANNOT trace to a cost object, therefore we must allocate them.
Example of direct cost
the cost object is a football team and the direct cost are the equipment for the players, salaries
of coaches, etc.
Example of indirect cost
the cost object is the deli sec on of a grocery store, the indirect cost is the salaries of the
checkout clerk, the cost of carts, etc.
What is an product cost?
this is the cost that is incurred when companies resell their product. It's the cost to produce the
good.
What are examples of period costs?
research, development, designing, marke ng, distribu ng, and customer service.
How do period costs flow through the financial statements?
these costs are expensed in the period incurred. Also known as opera ng expenses or selling,
general, administra ve expenses.
How do product costs flow through the financial statements?
these costs flow through inventory first (which is on the balance sheet). Once they are sold,
they show up on the income statement.
What companies incur product costs?
Only the companies that have tangible inventory, a physical good, incur this type of cost.
(service=0, merchandising=1, manufacturing=3)
What are 3 types of product costs for manufacturing companies?
Direct materials, Direct labor, Manufacturing Overhead
What are primary costs?
UPDATED RATED A+| 2026
planning
se ng goals and objec ves for organiza ons. Think: what are they wan ng to accomplish?
direc ng
overseeing the day-to-day opera ons. Think: where can we improve? are we achieving goals?
controlling
evalua ng results and making adjustments
managerial accoun ng focuses on...
relevant informa on that affects future opera ons
Sustainability
the ability to meet the needs of the present without compromising the ability of future
genera ons to meet their own needs
What are the three pillars of sustainability
3Ps: people (social), planet (environment), and profit (economic)
What is ethical behavior?
it means to do the right thing, regardless of the consequences. Not all unethical behavior is
illegal but all illegal behavior is unethical.
What are 2 ways to generate profit?
Increase revenues or sales, and/or decrease expenses/costs
What are 3 types of companies?
service (intangible), merchandising (reselling), and manufacturing (producing)
What are the 3 types of inventory for manufacturing companies?
Raw materials, work in progress, and finished goods
What is a cost object?
, this is anything that we as a company need to know and figure out the cost of
What is a direct costs?
any cost that we can TRACE DIRECTLY to a cost object.
What is an indirect cost?
any cost that we CANNOT trace to a cost object, therefore we must allocate them.
Example of direct cost
the cost object is a football team and the direct cost are the equipment for the players, salaries
of coaches, etc.
Example of indirect cost
the cost object is the deli sec on of a grocery store, the indirect cost is the salaries of the
checkout clerk, the cost of carts, etc.
What is an product cost?
this is the cost that is incurred when companies resell their product. It's the cost to produce the
good.
What are examples of period costs?
research, development, designing, marke ng, distribu ng, and customer service.
How do period costs flow through the financial statements?
these costs are expensed in the period incurred. Also known as opera ng expenses or selling,
general, administra ve expenses.
How do product costs flow through the financial statements?
these costs flow through inventory first (which is on the balance sheet). Once they are sold,
they show up on the income statement.
What companies incur product costs?
Only the companies that have tangible inventory, a physical good, incur this type of cost.
(service=0, merchandising=1, manufacturing=3)
What are 3 types of product costs for manufacturing companies?
Direct materials, Direct labor, Manufacturing Overhead
What are primary costs?
