1.
2. financial accounting information is intended for users external to an organization such as investors, creditors, and government authorities. managerial accounting focuses on providing information to managers, officers, and other decision makers within the organization.
3. No, GAAP do not control the practice of managerial accounting. Unlike external users, the internal users need managerial accounting information for planning and controlling business activities rather than for external comparison. Different types of information are required, depending on the activity. There fore it is difficult to standardize managerial accounting.
4. Under TQM, all managers and employees should strive toward higher standards in their work and in the products and services they offer to customers.
5. variable costs increase when colume of activity increases.
6. By being able to trace costs objects (say, to products and departments), managers better understand the toatal costs associated with a cost object. This is useful when managers con¬sider making changes to the cost object (such as when dropping the product or expanding the department).
7. Raw materials inventory, goods in process inventory, and fin¬ished goods inventory.
8. The cost of goods sold for merchandising companies includes all costs of acquiring the merchandise; the cost of goods sold for manufacturing companies includes the three costs of manu¬facturing: direct materials, direct labor, and overhead.
9. a
10. No; companies rarely report a manufacturing statement.
II. Beginning goods in process inventory is added to total manu¬facturing costs to yield total goods in process. Ending goods in process inventory is subtracted from total goods in process to yield cost of
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