c1h - 1. award: 1 out of 1 point Exercise 1-1 Sources of...

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1. award: 1 out of 1 point Exercise 1-1 Sources of accounting information L.O. C1 Both managerial accounting and financial accounting provide useful information to decision makers. Select X to indicate in the following chart the most likely source of information for each business decision (a decision can require major input from both sources, in which case both can be marked). (Leave no cells blank - be certain to Select "0" wherever required.) Primary Information Source Business Decision Managerial Financial Determine amount of dividends to pay stockholders X X Evaluate a purchasing department's performance X 0 Report financial performance to board of directors X X Estimate product cost for new line of shoes X 0 Plan the budget for next quarter X 0 Measure profitability of all individual stores X X Prepare financial reports according to GAAP 0 X Determine location and size for a new plant X 0 2. award: 1 out of 1 point Exercise 1-6 Cost analysis and identification L.O. C4, C5 Georgia Pacific, a manufacturer, incurs the following costs. 1. Classify each cost as either a product or a period cost by Selecting a X in appropriate column. If a product cost, identify it as a prime and/or conversion cost. (Leave no cells blank - be certain to Select "0" wherever required.) Product Cost Period Cost Prime Conversion Cost Amortization of patents on factory machine 0 X 0 Payroll taxes for production supervisor 0 X 0 Accident insurance on factory workers X X 0 Depreciation—Factory building 0 X 0 State and federal income taxes 0 0 X Wages to assembly workers X X 0 Direct materials used X 0 0 Office supplies used 0 0 X Bad debts expense 0 0 X Small tools used 0 X 0 Factory utilities 0 X 0 Advertising 0 0 X 2. Classify each product cost as either a direct cost or an indirect cost using the product as the cost object by Selecting X in appropriate column. (Leave no cells blank - be certain to Select"0" wherever required.)
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Direct Indirect Cost Cost Cost Amortization of patents on factory machine 0 X Payroll taxes for production supervisor 0 X Accident insurance on factory workers X X Depreciation—Factory building 0 X State and federal income taxes 0 0 Wages to assembly workers X 0 Direct materials used X 0 Office supplies used 0 0 Bad debts expense 0 0 Small tools used 0 X Factory utilities 0 X Advertising 0 0 Explanation: Accident insurance on factory workers There are certain costs that can be classified as direct for one company and indirect for another. The specific classification depends on the materiality and cost benefit of tracking. For example, some companies track employee benefits for direct and indirect workers. Yet, some manufacturing companies will simply classify all employee benefits as indirect and overhead. Wages to assembly workers Direct labor is a prime and conversion cost because this labor force is in direct contact with the product in the conversion process. 3.
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This note was uploaded on 05/23/2011 for the course ACCT 332 taught by Professor Mark during the Spring '11 term at UCSD.

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c1h - 1. award: 1 out of 1 point Exercise 1-1 Sources of...

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