IU A100 Exam 1 ACTUAL UPDATED Questions and CORRECT Answers
Terms in this set (26)
Managerial Accounting 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? 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? 1. selling expenses-advertising, marketing
Three Inventory Accounts raw materials, work in process, finished goods
Fixed Costs stay the same in total regardless of the volume produced
Example: fixed amount of rent
Variable Costs move exactly with level of production
Example: more production can occur to buy in bulk
The Contribution Margin Sales
- Variable Costs
___________________________
CM
- FC
___________________________
Net Income
Simple Income Statement revenue-expenses= net income loss
Multi Step Income Statement Sales
- Cost of Goods Sold
______________________________________
Gross Profit
- Operating Expenses
______________________________________
Net Income
Variable behavior in total____ varies with volume
Fixed behavior in total____ stays the same
Variable behavior per unit____ stays the same
Fixed behavior per unit____ varies with volume
Breakeven Point Fixed Costs/Contribution Margin per unit
Terms in this set (26)
Managerial Accounting 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? 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? 1. selling expenses-advertising, marketing
Three Inventory Accounts raw materials, work in process, finished goods
Fixed Costs stay the same in total regardless of the volume produced
Example: fixed amount of rent
Variable Costs move exactly with level of production
Example: more production can occur to buy in bulk
The Contribution Margin Sales
- Variable Costs
___________________________
CM
- FC
___________________________
Net Income
Simple Income Statement revenue-expenses= net income loss
Multi Step Income Statement Sales
- Cost of Goods Sold
______________________________________
Gross Profit
- Operating Expenses
______________________________________
Net Income
Variable behavior in total____ varies with volume
Fixed behavior in total____ stays the same
Variable behavior per unit____ stays the same
Fixed behavior per unit____ varies with volume
Breakeven Point Fixed Costs/Contribution Margin per unit
