Q1. What are the major differences between financial accounting and managerial accounting?
Q2. Define what is meant by the term direct materials cost. Give examples of direct materials for a clothing manufacturer.
Q3. Define what is meant by the term direct labor cost. Give examples of direct labor for a bakery.
Q4. Define what is meant by the term factory overhead cost. Give examples of factory overhead cost for a furniture manufacturer.
Q5. Define what is meant by prime costs and state which of the three manufacturing costs are included.
Q6. Define what is meant by conversion costs and state which of the three manufacturing costs are included.
Q7. What is the difference between a product cost and a period cost? Give examples of each for a car manufacturer.
Q8. One of the inventory accounts for a manufacturing business is Materials Inventory. Provide a description of what this account represents.
Q9. One of the inventory accounts for a manufacturing business is Work in Process Inventory. Provide a description of what this account represents.
Q10. One of the inventory accounts for a manufacturing business in Finished Goods. Provide a description of what this account represents.
Q11. How does the Cost of Goods Sold section of the income statement differ between merchandising and manufacturing companies?
Q12. Explain how to compute cost of goods available for sale.
Q13. List and define the five basic phases of the management process.
Q14. In the controlling phase of the management process, feedback is necessary. Describe what is meant by feedback.
Q15. Describe the philosophy of continuous process improvement.
Q16. What are some uses of managerial accounting information?
Q17. Define what is meant by the term cost object. Identify a possible cost object for a pharmaceutical company, explain.
Q18. Materials may be either direct or indirect. Explain the difference.
Q19. Labor may be either direct or indirect. Explain the difference.
Q20. Prior to the sale of the finished goods, where would you see the product costs reported on the financial statements? Explain.