5 Chapter 18 2. Managerial accounting reports do not need to be prepared according to 3. If a department is directly involved in manufacturing activities, it is known as an) department 4. Another title for a firm's chief management accountant is the firm's 5. Within the management process is used to develop the organization's goals (objectives). is a step in the management process that consists of monitoring the operating results of implemented plans and comparing the actual results with the expected results. is the management philosophy of continually improving employees, business processes, and products. 8. A company uses an electric furnace to melt iron ore. Costs of running the furnace, a necessary step in converting iron ore into steel, are known as _ costs. 9. Woods Company, a manufacturer of air compressors, regularly buys flow regulators from an outside vendor. If they are an integral component for the final product, flow regulators should be classified as costs. 10. Labor costs that do not enter directly into the manufacture of a product are classified as and are recorded as factory overhead. 11. The cost of the insurance on the factory building would be classified as a(n) cost. costs consist of the grouping of direct labor and factory overhead costs. costs consist of the three elements of manufacturing cost. expenses are incurred in marketing the product and delivering the sold product to customers. direct materials costs, direct labor costs, and factory overhead costs that have entered the manufacturing process but are associated with products that have not been completed. 16. The cost of product sold for a manufacturer is generally called the 17. The total manufacturing costs added to production will be less than the cost of goods manufactured when the work in process inventory at the