What are the major differences between financial accounting and managerial accounting? Define what is meant by the
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Question:
- What are the major differences between financial accounting and managerial accounting?
- Define what is meant by the term direct materials cost. Give examples of direct materials for a clothing manufacturer.
- Define what is meant by the term direct labor cost. Give examples of direct labor for a bakery.
- Define what is meant by the term factory overhead cost. Give examples of factory overhead cost for a furniture manufacturer.
- Define what is meant by prime costs and state which of the three manufacturing costs are included.
- Define what is meant by conversion costs and state which of the three manufacturing costs are included.
- What is the difference between a product cost and a period cost? Give examples of each for a car manufacturer.
- One of the inventory accounts for a manufacturing business is Materials Inventory. Provide a description of what this account represents.
- One of the inventory accounts for a manufacturing business is Work in Process Inventory. Provide a description of what this account represents.
- One of the inventory accounts for a manufacturing business in Finished Goods. Provide a description of what this account represents.
- How does the Cost of Goods Sold section of the income statement differ between merchandising and manufacturing companies?
- Explain how to compute cost of goods available for sale.
- List and define the five basic phases of the management process.
- In the controlling phase of the management process, feedback is necessary. Describe what is meant by feedback.
- Describe the philosophy of continuous process improvement.
- What are some uses of managerial accounting information?
- Define what is meant by the term cost object. Identify a possible cost object for a pharmaceutical company, explain.
- Materials may be either direct or indirect. Explain the difference.
- Labor may be either direct or indirect. Explain the difference.
- Prior to the sale of the finished goods, where would you see the product costs reported on the financial statements? Explain.
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
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