1. What are the major differences between managerial and financial accounting?

2. Identify the three elements of cost incurred in manufacturing a product and indicate the distinguishing characteristics of each.

3. Why might a company claim that the total cost of employing a person is $15.30 per hour when the employee’s wage rate is $10.50 per hour? How should this difference be classified and why?

1. Why are certain costs referred to as period costs? What are the major types of period costs incurred by a manufacturer?

2. Explain why the income statement of a manufacturing company differs from the income statement of a merchandising company.

3. What is the general content of a statement of cost of goods manufactured? What is its relationship to the income statement?

4. Real world question Assume Domino’s Pizza is considering offering a new product—a 6-inch (15.24 cm) pizza. Why would it matter if Domino’s Pizza knows how much it costs to produce and deliver this 6-inch (15.24 cm) pizza?

5. Real world question Why is it becoming more important that the managers of hospitals understand their product costs?

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1 The main difference between financial and managerial accounting is that financial accounting is th... View the full answer