A306 Exam 1/
Questions with
Correct Answers A+
Score Solutions.
Direct Cost a cost that can be easily and conveniently traced to a
specified cost object
Terms in this set (42)
Financial Accounting Decision makers OUTSIDE the company (investors, banks,
gov agencies) and PAST of company, provide Balance
sheet, income statement, stmt of ret earn, stmt of cash
flows
Managerial Accounting decision makers INSIDE the company (executives, dept
managers, employees) and FUTURE of company; financial
and non financial is used to fulfill organization goals 1. for
planning
2. for controlling
3. for decision making
Prime costs Direct Materials + Direct Labor (always direct costs);
analysis of these helps set selling prices to achieve
required profits
Conversion costs direct labor and manufacturing overhead (they
include all indirect); gauge efficiency in the
production process
Questions with
Correct Answers A+
Score Solutions.
Direct Cost a cost that can be easily and conveniently traced to a
specified cost object
Terms in this set (42)
Financial Accounting Decision makers OUTSIDE the company (investors, banks,
gov agencies) and PAST of company, provide Balance
sheet, income statement, stmt of ret earn, stmt of cash
flows
Managerial Accounting decision makers INSIDE the company (executives, dept
managers, employees) and FUTURE of company; financial
and non financial is used to fulfill organization goals 1. for
planning
2. for controlling
3. for decision making
Prime costs Direct Materials + Direct Labor (always direct costs);
analysis of these helps set selling prices to achieve
required profits
Conversion costs direct labor and manufacturing overhead (they
include all indirect); gauge efficiency in the
production process
