1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that product costs are distinguished from period costs? 3.) Explain why financial statement analysis is important

1.) Explain one difference between manufacturing and merchandising business. 2.) Why is it that product costs are distinguished from period costs? 3.) Explain why financial statement analysis is important

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 1DQ

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1.) Explain one difference between manufacturing and merchandising business.

2.) Why is it that product costs are distinguished from period costs?

3.) Explain why financial statement analysis is important.

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1. State whether the following questions is True (T) or False (F): a. Cost accounting looks at the company as a whole and not at the various units, jobs or processes. b. Financial accounting is concerned with how and why profits arise. c. Cost accounting depends entirely on historical information.
Which of the following is NOT a period cost? Select one: O a. manufacturing costs. Ob general and administrative costs. Oc marketing costs. Od. research and development costs. Which of the following is NOT one of the questions management accountants might attempt to help answer in the formulation of strategy? Select one: a. What substitute products exist in the marketplace? Ob. Who are our most important customers? Does the strategy comply with GAAP (Generally Accepted Accounting Principles)? Od. Will adequate cash be available to implement the strategy?
Show your solution in good accounting form How much is the cost of goods manufactured?
Which objective of cost accounting classifies and analyzes cost date for measuring efficiency? a. Guide to business policy b. Determination of selling price c. Cost control and reduction d. Measuring and improving performance
4. What is the difference between the SCI of a service entity from a merchandising entity? 5. What is the formula in computing Net Income (Loss) for Service Entities? 6. What is the formula in computing Net Sales? 7. What is the formula in computing Cost of Goods Sold?
How cost accounting is useful where financial accounting could not be answered. Give any exampleto support your answer.
3. Determining the unit cost of manufacturing a product is an output of financial accounting.
How you relate the differential cost with management of revenue in management accounting.
How much is total cost of goods manufactured? ANSWER IN GOOD ACCOUNTING FORM. THANK YOU :)
In your own understanding, please answer the following: 1. What are the importance of knowing, analyzing and assessing the financial statement in the decision making of internal and external users in the organization? 2. Explain briefly how do you understand the concept of Cost of Good Sold.
MANAGEMENT ACCOUNTING (COST-VOLUME PROFIT ANALYSIS)
What are the key differences between financial accounting and managerial accounting?