1.A key difference between managerial and financial accounting is that
Managerial is only historical data and financial is only future data
Managerial users are typically internal and financial users typically external
Managerial is highly regulated and financial is not
Financial uses much more economic data than managerial
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2.An example of a period cost in accounting would be
Materials to make a product
A factory supervisorâ s wages
Brochures used to sell the product
Depreciation of manufacturing equipment
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3.Major inventory accounts in a manufacturing environment typically include all of the following except
Raw materials
Work in progress
Office supplies
Finished goods
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4.When a business is able to simultaneously reduce inventory holding costs and increase customer satisfaction by making products available exactly when a customer wants them, it is likely using
Seasonal control
Just in time inventory management
Factors of production planning
Supply chain distribution
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5.An example of a direct product cost would be
Prepaid rent of the retail store
Health insurance costs for sales teams
Product parts
The factory janitorial staffâ s wages
6.An example of manufacturing overhead (indirect product costs) may be all of the following except
Equipment depreciation
Plant electric costs
Materials to make a product
A factory supervisorâ s wages
1.A key difference between managerial and financial accounting is that
| Managerial is only historical data and financial is only future data | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Managerial users are typically internal and financial users typically external | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Managerial is highly regulated and financial is not | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Financial uses much more economic data than managerial
--------------------- 3.Major inventory accounts in a manufacturing environment typically include all of the following except
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Related questions
Managerial accounting information is restricted by which of the following authorities or principles?
| a. | Value Added Principle | |
| b. | Generally Accepted Accounting Principles | |
| c. | Securities and Exchange Commission | |
| d. | Financial Accounting Standards Board |
Which of the following costs is not considered to be an inventory (product) cost?
| a. | Raw material | |
| b. | Production wages | |
| c. | Depreciation of delivery vehicles | |
| d. | Factory utilities |
Which of the following is a characteristic of managerial accounting information?
| a. | It is historically based. | |
| b. | It is regulated by the SEC. | |
| c. | It is directed to external users. | |
| d. | It involves continuous reporting. |
Carson Manufacturing Company recognized accrued compensation for sales staff. Which of the following choices accurately reflects how this event would affect the company's financial statements?
| a. | decrease one asset account and decrease an equity account. | |
| b. | increase one asset account and decrease another asset account. | |
| c. | increase one liability account and increase an asset account. | |
| d. | increase one liability account and decrease an equity account. |
I'll rate posting for sec times just do last parts likecost and balance sheet ( account balance and cost incurred ) that'sit ready question carefully then answer all last partthanks
Charles Maxwell is starting a cheesecake bakery, Able BakerCharlie Company, to produce and sell different flavored cheesecakesto restaurants and the general public. He has just begun his studyof accounting, and is a bit confused about the many types ofreports he has read about and how they will help him run hisbusiness. He asks you to help him clarify what the differencesbetween managerial accounting and financial accounting are. Heâsalso wondering how to set up his inventory, how to classify thecosts of his business, and how to fill in some missinginformation.
| Required: | |
| 1. | Choose whether thecharacteristics on the Managerial vs. Financial panel are mostoften associated with managerial accounting or financialaccounting. |
| 2. | Charles has provided some ofthe costs he expects to incur on the Cost Classification panel.Decide on the classifications that could be applied to each ofthese costs using the table provided. The cost object in each caseis the cheesecake. |
| 3. | Charles found some sampleincome statements and balance sheets on the Internet, and askedwhich of them might be most appropriate for a manufacturingbusiness like his. Review income statements A and B on the IncomeStatements panel, and balance sheets C and D on the Balance Sheetspanel. Determine which income statement and balance sheet would bemost appropriate for a manufacturing business like Able BakerCharlie. Then, on the Financial Statements panel, denote whichincome statement and balance sheet would be most appropriate for amanufacturing business. |
| 4. | At the end of February, afterthe second month of operations of Able Baker Charlie Company,Charles shows you the data heâs collected, but he was unable tofigure out some of the amounts. On the Costs and Balances panel,determine the missing amounts. Note: It may behelpful to use T accounts to map the flow of the amounts throughthe manufacturing accounts and solve for the missing dollarvalues. |
Managerial vs. Financial
Choose whether the following characteristics are most oftenassociated with managerial accounting or financial accounting.
Managerial Accounting | Financial Accounting | ||
|---|---|---|---|
| Primarily used for internal decision making | |||
| Generally Accepted Accounting Principles (GAAP) must beused | |||
| Prepared statements usually pertain to the company as a wholerather than individual departments or products | |||
| Information provided will often be subjective, such asestimated future results | |||
| Often prepared on an as-needed basis rather than at fixedintervals | |||
| Use principles of the Sustainability Accounting Standards Board(SASB) to provide sustainability information to external financialstatement users | |||
| Consideration of sustainability practices to contribute to thecompanyâs long-term success | |||
| Using eco-efficiency measures to reduce expenses |
Cost Classification
Charles has provided some of the costs he expects to incur asfollows. Decide on the classifications that could be applied toeach of these costs using the table provided. The cost object ineach case is the cheesecake.
Cost | Product | Period | Direct | Direct | Factory | Selling | Administrative | Direct | Indirect | Prime | Conversion | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
Cost | Cost | Materials | Labor | Overhead | Expense | Expense | Cost | Cost | Cost | Cost | ||
| Eggs used to make cheesecakes | ||||||||||||
| Bakerâs wages | ||||||||||||
| Delivery driver wages | ||||||||||||
| Depreciation of office computers | ||||||||||||
| Power to run the cheesecake ovens | ||||||||||||
| Presidentâs salary | ||||||||||||
| Sales commissions | ||||||||||||
| Factory supervisor salary |
Financial Statements
Charles found some sample income statements and balance sheetson the Internet, and asked which of them might be most appropriatefor a manufacturing business like his. Review income statements Aand B on the Income Statements panel, and balance sheets C and D onthe Balance Sheets panel. Determine which income statement andbalance sheet would be most appropriate for a manufacturingbusiness like Able Baker Charlie Company.
Which income statement is most appropriate for a manufacturingbusiness?
Income statement A
Income statement B
Which balance sheet is most appropriate for a manufacturingbusiness?
Balance sheet C
Balance sheet D
Income Statements
Income Statement A (scroll down for Income StatementB):
Sample Company A |
Income Statement |
For the Year Ended December 31, 20Y8 |
1 | Sales | $42,000.00 | |
2 | Beginning finished goods inventory | $5,250.00 | |
3 | Plus cost of goods manufactured | 6,400.00 | |
4 | Cost of finished goods available for sale | $11,650.00 | |
5 | Less ending finished goods inventory | 400.00 | |
6 | Cost of goods sold | 11,250.00 | |
7 | Gross profit | $30,750.00 | |
8 | Operating expenses: | ||
9 | Selling expenses | $6,400.00 | |
10 | Administrative expenses | 5,250.00 | |
11 | Total operating expenses | 11,650.00 | |
12 | Net income | $19,100.00 |
Income Statement B:
Sample Company B |
Income Statement |
For the Year Ended December 31, 20Y8 |
1 | Sales | $42,000.00 | |
2 | Beginning merchandise inventory | $5,250.00 | |
3 | Plus net purchases | 6,400.00 | |
4 | Merchandise available for sale | $11,650.00 | |
5 | Less ending merchandise inventory | 400.00 | |
6 | Cost of merchandise sold | 11,250.00 | |
7 | Gross profit | $30,750.00 | |
8 | Operating expenses: | ||
9 | Selling expenses | $6,400.00 | |
10 | Administrative expenses | 5,250.00 | |
11 | Total operating expenses | 11,650.00 | |
12 | Net income | $19,100.00 |
Balance Sheets
Balance Sheet C (scroll down for Balance SheetD):
Sample Company C |
Balance Sheet |
December 31, 20Y8 |
1 | Assets | ||
2 | Cash | $20,800.00 | |
3 | Accounts receivable (net) | 10,000.00 | |
4 | Merchandise inventory | 6,000.00 | |
5 | Supplies | 2,100.00 | |
6 | Land | 17,000.00 | |
7 | Total assets | $55,900.00 | |
8 | Liabilities | ||
9 | Accounts payable | $17,800.00 | |
10 | Stockholdersâ Equity | ||
11 | Common stock | $19,000.00 | |
12 | Retained earnings | 19,100.00 | |
13 | Total stockholdersâ equity | 38,100.00 | |
14 | Total liabilities and stockholdersâ equity | $55,900.00 |
Balance Sheet D:
Sample Company D |
Balance Sheet |
December 31, 20Y8 |
1 | Assets | ||
2 | Cash | $20,800.00 | |
3 | Accounts receivable (net) | 10,000.00 | |
4 | Inventories: | ||
5 | Finished goods | $2,000.00 | |
6 | Work in process | 1,500.00 | |
7 | Materials | 2,500.00 | 6,000.00 |
8 | Supplies | 2,100.00 | |
9 | Land | 17,000.00 | |
10 | Total assets | $55,900.00 | |
11 | Liabilities | ||
12 | Accounts payable | $17,800.00 | |
13 | Stockholdersâ Equity | ||
14 | Common stock | $19,000.00 | |
15 | Retained earnings | 19,100.00 | |
16 | Total stockholdersâ equity | 38,100.00 | |
17 | Total liabilities and stockholdersâ equity | $55,900.00 |
Costs and Balances
At the end of February, after the second month of operationsof Able Baker Charlie Company, Charles shows you the data heâscollected, but he was unable to figure out some of the amounts.Review the following data and fill in the missing amounts on thechart for Able Baker Charlie Company. Note: It maybe helpful to use T accounts to map the flow of the amounts throughthe manufacturing accounts and solve for the missing dollar values.It may also be helpful to review the steps for determining the costof materials used, total manufacturing cost incurred, and cost ofgoods manufactured.
| Data forFebruary | |
|---|---|
| Decrease in materialsinventory | $3,300 |
| Materials inventory on Feb. 28 | 50% of materials inventory on Jan.31 |
| Direct materials purchased | $12,600 |
| Direct materials used | 3 times the direct laborincurred |
| Total manufacturing costs incurredin period | $29,400 |
| Total manufacturing costs incurredin period | 70% of Cost of GoodsManufactured |
| Total manufacturing costs incurredin period | $7,000 less than Cost of GoodsSold |
| Account | Account Balances | Costs Incurred | ||
|---|---|---|---|---|
| Jan.31 | Feb.28 | |||
| Materials Inventory | DirectMaterials Used | |||
| Work inProcess Inventory | $27,000 | DirectLabor Incurred | ||
| FinishedGoods Inventory | $16,000 | FactoryOverhead Incurred | ||
| Cost ofGoods Sold | ||||
