Questions from Managerial Accounting

Q: Explain the difference between a product cost and a period cost.

Explain the difference between a product cost and a period cost.

Q: Describe how the income statement of a manufacturing company differs from the

Describe how the income statement of a manufacturing company differs from the income statement of a merchandising company.

Q: Describe the schedule of cost of goods manufactured. How does it

Describe the schedule of cost of goods manufactured. How does it tie into the income statement?

Q: Why are product costs sometimes called inventoriable costs? Describe the flow

Why are product costs sometimes called inventoriable costs? Describe the flow of such costs in a manufacturing company from the point of incurrence until they finally become expenses on the income sta...

Q: Is it possible for costs such as salaries or depreciation to end

Is it possible for costs such as salaries or depreciation to end up as assets on the balance sheet? Explain.

Q: Mauro Products distributes a single product, a woven basket whose selling

Mauro Products distributes a single product, a woven basket whose selling price is $15 and whose variable expense is $12 per unit. The company’s monthly fixed expense is $4,200. Required: 1. Solve for...

Q: Define the following terms: differential cost, opportunity cost, and

Define the following terms: differential cost, opportunity cost, and sunk cost.

Q: Describe the three major activities of a manager.

Describe the three major activities of a manager.

Q: What are the major differences between financial and managerial accounting?

What are the major differences between financial and managerial accounting?

Q: Define the following: (a) Direct materials,

Define the following: (a) Direct materials, (b) Indirect materials, (c) Direct labour, (d) Indirect labour, and (e) Manufacturing overhead.