Managerial Accounting
Midterm Exam
April 27, 2021
1. Define Managerial Accounting
2. Define Financial Accounting
3. Define Cost Accounting
4. Is management accounting important for not-for-profit organizations and for-profit
organizations? Explain
5. What is the difference between direct cost and indirect cost?
6. Why do you think managers of a manufacturing firm would find it beneficial to separate the
amount and cost of inventory items into raw materials, work-in-process, and finished goods?
7. What is the formula for Cost of Goods Manufactured?
8. What is the formula for Cost of Goods Sold?
9. If a toothpick factory makes 4 million toothpicks and the total production cost is $800,000, then
what is the cost per toothpick?
10. Define Purchasing Department
11. If the amount allocated to production exceeds the actual overhead amount, is overhead
overapplied or underapplied?
12. What is the formula for Overhead Application Rate?
13. What is the formula for Total Overhead Allocation?
14. What is activity- based costing?