close solutoin list

Concepts and terminology From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences: a. The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving). b. Direct labor costs combined with factory overhead costs are called (prime, conversion) costs. c. The salaries of salespeople are normally considered a (period, product) cost. d. The plant manager’s salary would be considered (direct, indirect) to the product. e. Long-term plans are called (strategic, operational) plans. f. Materials for use in production are called (supplies, materials inventory). g. An example of factory overhead is (electricity used to run assembly line, CEO salary).

BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094
BuyFind

Accounting

27th Edition
WARREN + 5 others
Publisher: Cengage Learning,
ISBN: 9781337272094

Solutions

Chapter
Section
Chapter 18, Problem 18.6EX
Textbook Problem

Concepts and terminology

From the choices presented in parentheses, choose the appropriate term for completing each of the following sentences:

a. The phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called (directing, improving).

b. Direct labor costs combined with factory overhead costs are called (prime, conversion) costs.

c. The salaries of salespeople are normally considered a (period, product) cost.

d. The plant manager’s salary would be considered (direct, indirect) to the product.

e. Long-term plans are called (strategic, operational) plans.

f. Materials for use in production are called (supplies, materials inventory).

g. An example of factory overhead is (electricity used to run assembly line, CEO salary).

Expert Solution
To determine

Period costs:

Period costs are the costs other than the product costs. These costs are not incurred in manufacturing the goods. These costs include the administrative expenses, and selling expenses.

Conversion cost:

A conversion cost refers to the cost of converting the raw materials into a finished product. Conversion cost includes direct labor as well as factory overhead costs.

To choose: The appropriate term for completing each of the following sentences.

Explanation of Solution

The appropriate term for completing each of the following sentences:

a. Improving
b. Conversion
c. Period
d. Indirect
e. Strategic
f. Materials inventory
g. Electricity used to run assembly line

Table (1)

  1. a. The management improves on the areas wherever it needs attention in order to deliver the correct product in the correct quantities. Hence, the phase of the management process that uses process information to eliminate the source of problems in a process so that the process delivers the correct product in the correct quantities is called improving.
  2. b. Conversion cost includes direct labor as well as factory overhead costs. Hence, direct labor costs combined with factory overhead costs are called conversion costs...

Want to see this answer and more?

Bartleby provides explanations to thousands of textbook problems written by our experts, many with advanced degrees!

See solution

Chapter 18 Solutions

Accounting
Show all chapter solutions
Ch. 18 - Management process Three phases of the management...Ch. 18 - Management process Three phases of the management...Ch. 18 - Direct materials, direct labor, and factory...Ch. 18 - Direct materials, direct labor, and factory...Ch. 18 - Prime and conversion costs Identify the following...Ch. 18 - Prime and conversion costs Identify the following...Ch. 18 - Product and period costs Identify the following...Ch. 18 - Product and period costs Identify the following...Ch. 18 - Cost of goods sold, cost of goods manufactured...Ch. 18 - Cost of goods sold, cost of goods manufactured...Ch. 18 - Classifying costs as materials, labor, or factory...Ch. 18 - Classifying costs as materials, labor, or factory...Ch. 18 - Classifying costs as factory overhead Which of the...Ch. 18 - Classifying costs as product or period costs For...Ch. 18 - Concepts and terminology From the choices...Ch. 18 - Concepts and terminology From the choices...Ch. 18 - Classifying costs in a service company A partial...Ch. 18 - Sustainability and eco-efficiency measures Four...Ch. 18 - Classifying costs The following report was...Ch. 18 - Financial statements of a manufacturing firm The...Ch. 18 - Manufacturing company balance sheet Partial...Ch. 18 - Cost of direct materials used in production for a...Ch. 18 - Cost of goods manufactured for a manufacturing...Ch. 18 - Cost of goods manufactured for a manufacturing...Ch. 18 - Income statement for a manufacturing company Two...Ch. 18 - Statement of cost of goods manufactured for a...Ch. 18 - Cost of goods sold, profit margin, and net income...Ch. 18 - Cost flow relationships The following information...Ch. 18 - Uses of managerial accounting in a service company...Ch. 18 - Classifying costs The following is a list of costs...Ch. 18 - Classifying costs The following is a list of costs...Ch. 18 - Cost classifications for a service company A...Ch. 18 - Manufacturing income statement, statement of cost...Ch. 18 - Statement of cost of goods manufactured and income...Ch. 18 - Classifying costs The following is a list of costs...Ch. 18 - Classifying costs The following is a list of costs...Ch. 18 - Cost classifications for a service company A...Ch. 18 - Manufacturing income statement, statement of cost...Ch. 18 - Statement of cost of goods manufactured and income...Ch. 18 - Ethics in Action Avett Manufacturing Company...Ch. 18 - Communication Todd Johnson is the vice president...Ch. 18 - Managerial accounting in the management process...Ch. 18 - Classifying costs Geek Gut Company provides...Ch. 18 - Using managerial accounting Information The...

Additional Business Textbook Solutions

Find more solutions based on key concepts
Show solutions
Why do companies hold short-term investments?

Cornerstones of Financial Accounting

What is the function of a balance sheet?

College Accounting, Chapters 1-27

What is a user view?

Accounting Information Systems

DuPONT ANALYSIS Doublewide Dealers has an ROA of 10%, a 2% profit margin, and an ROE of 15%. What is its total ...

Fundamentals of Financial Management, Concise Edition (with Thomson ONE - Business School Edition, 1 term (6 months) Printed Access Card) (MindTap Course List)

Explain the calculation of net sales and net purchases.

College Accounting (Book Only): A Career Approach