Q: 1SHORT ANSWER QUESTIONS, EXERCISES AND PROBLEMS

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 employees 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 Dominos Pizza is considering offering a new producta 6-inch (15.24 cm) pizza. Why would it matter if Dominos 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?