Managerial Accounting Chapter 1

this kind of accounting includes external users like investors and creditors

financial accounting

this kind of accounting includes internal users like executives, managers and employees

managerial

this type of accounting involves the investment decisions

financial

this accounting has the planning, directing, and controlling business operations

managerial

this accounting has economic, physical and financial data

managerial

managerial and financial accounting both have what characteristic

financial data

this accounting includes the company as a whole

financial

this accounting includes detailed information about specific subunits of the company like division, departments and locations

managerial

This type of accounting is regulated by securities exchange commission (SEC) and financial accounting standards board (FASB)

financial

this accounting has no regulation

managerial

this accounting is limited only by the value added principle (cost vs benefit)

managerial

This type of accounting has information characteristics like objectivity, reliability, consistency, and accuracy

financial

this accounting has informational characteristics like relevance and timeliness

managerial

This accounting has historical nature

financial

this is future focus accounting

managerial

this accounting includes periodic reporting (monthly, quarterly, and annually)

financial

this accounting has continuous reporting and as needed reporting

managerial

what are manufacturing costs referred to as

product costs

Direct materials, direct labor, and manufacturing overhead are components of what costs

product costs

these are the major components used to make the product and part of product costs

direct materials

this is the labor that is directly used to make the product and part of product costs

direct labor

this is the indirect materials, indirect labor, and other resources utilized indirectly in the manufacturing process and part of product costs

manufacturing overhead

this cost is classified as an asset (inventory) until the product is completed and sold

product cost

when the product is sold, the product cost becomes what?

an expense (cost of goods sold)

what does the matching principle tell us?

that expenses match with revenue

what happens to costs that are not classified as product costs?

they are normally expensed in the period in which they are incurred

what costs are included in costs that are expensed in the period in which they are incurred

general operating costs (non-manufacturing), selling and administrative costs, interest costs, cost of income tax

what are wages of production workers

product and asset

what are advertising and promotion costs

sg + a, expense

what are production supplies

product, asset

what are depreciation on administrative building

sg&a expense

what is depreciation on manufacturing equipment

product, asset

what is research and development costs

sg&a, expense

what is cost to set up manufacturing equipment

product, asset

what is utilities used in manufacturing facility

product, asset

what is real estate tax levied on a factory

product, asset

what is general office supplies

sg&a, expense

what is raw materials used in manufacturing process

product, asset

what is the cost to rent office equipment

sg&a, expense

these are costs that are incurred before the manufacturing process

upstream costs

examples of this costs include research and development costs, product design costs

upstream costs

these are costs that are incurred during the manufacturing process

midstream costs

examples of this cost include product costs like direct materials, direct labor, manufacturing overhead

midstream costs

these are costs that are incurred after the manufacturing process

downstream costs

examples of this cost include marketing, distribution, customer service

downstream costs

direct materials are what cost

midstream

research and development is a what cost

upstream

product design is a what cost

upstream

manufacturing overhead is a what cost

midstream

sales salaries is a what cost

downstream

cost of delivering merchandise to customers is a what cost

downstream

the cost to create a copyright is a what cost

upstream

salaries of product engineers is a what cost

upstream

salaries of production line workers is a what cost

midstream

direct labor is a what cost

midstream

the cost of heating the manufacturing plant is a what

midstream

the salary of a company president is a what cost

upstream

the depreciation on manufacturing equipment is a what cost

midstream

the depreciation on office equipment is a what cost

downstream