Managerial Accounting economic information
(a) “Managerial accounting is a field of accounting that provides economic information for all interested parties.” Do you agree? Explain.
2. Distinguish between managerial and financial accounting as to (a) primary users of reports, (b) types and frequency of reports, and (c) purpose of reports.
3. Linda Olsen is studying for the next accounting midterm examination. Summarize for Linda what she should know about management functions.
4. “Decision-making is management’s most important function.” Do you agree? Why or why not.
5. Jerry Lang is unclear as to the difference between the balance of a merchandising company and a manufacturing company. Explain the difference to Jerry.
BE1-2 Listed below are the three functions of the management of an organization. 1. Planning 2. Directing 3. Controlling Identify which of the following statements best describes each of the above functions. (a) _______requires management to look ahead and to establish objectives. A key objective of management is to add value to the business. (b) ________involves coordinating the diverse activities and human resources of a Company to product a smooth-running operation. This function relates to the implementation of planned objectives. (c) ________is the process of keeping the activities on track. Management determines whether goals are being met and what changes are necessary when there are deviations.
BE1-3 Determine whether each of the following costs should be classified as direct materials (DM), direct labor (DL), or manufacturing overhead (MO). (a) ______ Frames and tires used in manufacturing bicycles. (b) ______ Wages paid to production workers. (c) ______ Insurance on factory equipment and machinery. (d) ______ Depreciation on factory equipment. BE1-4 Indicate whether each of the following costs of an automobile manufacturer would be classified as direct materials, direct labor, or manufacturing overhead. (a)______Manufacturing overhead. (e) _______Factory machinery lubricants. (b)______Engine. (f)________Tires. (c)_____Wages of assembly line worker. (g)________Steering wheel. (d)_____Depreciation of factory machinery. (h)________Salary of painting supervisor.
BE1-5 Identify whether each of the following costs should be classified as product costs or period costs. (a)_____Manufacturing overhead. (d)_____Advertising expenses. (b)_____Selling expenses. (e)_____Direct labor. (c)_____Administrative expenses. (f)_____Direct Materials.