chapter
18
Managerial Accounting
Concepts and Principles
______________________________________________
OPENING COMMENTS
Chapter 18 introduces students to managerial accounting and the manufacturing process. Students will
learn how managerial accounting is used in the management decision process. They will also be exposed
to the terminology used to describe costs related to manufacturing.
Students learn how costs flow through a manufacturing system.
After studying the chapter, your students should be able to:
1. Describe managerial accounting and the role of managerial accounting in a business.
2. Define and illustrate the following costs: direct and indirect costs; direct materials, direct labor, and
factory overhead costs; and product and period costs.
3. Describe and illustrate the following statements for a manufacturing business: balance sheet,
statement of cost of goods manufactured, and income statement.
4. Describe the uses of managerial accounting information.
KEY TERMS
continuous process improvement
controller
controlling
conversion costs
cost
cost object
cost of finished goods available for sale
340 Chapter 18 Managerial Accounting Concepts and Principles
cost of goods manufactured
cost of goods sold
cost of merchandise sold
decision making
direct costs
direct labor cost
direct materials cost
directing
factory burden
factory overhead cost
feedback
financial accounting
finished goods inventory
indirect costs
line department
management by exception
management process
managerial accounting
manufacturing overhead
materials inventory
merchandise available for sale
objectives (goals)
operational planning
period costs
planning
prime costs
product costs
staff department
statement of cost of goods manufactured
strategic planning
strategies
work in process inventory
STUDENT FAQS
• Why is conversion cost considered to be direct labor and factory overhead?
• Why is direct and indirect cost so important to understand?
• Why is product and period cost so important to understand?
• Why do we have to maintain all these costs for each specific job?
• Why is direct labor both a prime and a conversion cost? Isn’t that double accounting?
Chapter 18 Managerial Accounting Concepts and Principles 341
OBJECTIVE 1
Describe managerial accounting and the role of managerial accounting in a business.
SYNOPSIS
Managerial accounting provides information to internal users. Managers use this information to control,
plan, and evaluate the performance of the business. Managerial accounting information includes historical
data to evaluate performance and estimated data to assist in making future decisions. Financial accounting
is reported at fixed intervals and provides information to assist external users in making decisions. These
external users include shareholders, creditors, government agencies, and the general public.
Departments in a company can be either line or staff departments. Line departments are directly involved
in providing goods and services to the company’s customers. Managers in these line positions are
responsible for their department’s manufacturing and selling of goods. Staff departments provide services,
assistance, and advice to other departments. The controller is the chief management accountant;
accounting touches all phases of a company’s operations.
A manager uses planning in developing the company’s objectives and then takes actions to implement
these plans. Operational planning develops short-term actions for day-to-day operations. Strategic
planning develops long-term actions to achieve goals involving objectives for the next 5 to 10 years.
Managers direct the day-to-day operations of the business. Monitoring operating results and comparing
these results with the expected results is called controlling. Feedback allows managers to investigate
problems and take remedial actions. It may also lead to adjustment of future plans. Feedback is also used
to improve employees, business processes, and products in a continuous process improvement. Inherent
in all of these processes is decision making in which managers continually decide among alternative
actions.
Key Terms and Definitions
• Continuous Process Improvement – A management approach that is part of the overall total
quality management philosophy. The approach requires all employees to constantly improve
processes of which they are a part or for which they have managerial responsibility.
• Controller – The chief management accountant of a division or other segment of a business.
• Controlling – A phase in the management process that consists of monitoring the operating
results of implemented plans and comparing the actual results with the expected results.
• Decision Making – A component inherent in the other management processes of planning,
directing, controlling, and improving.
• Directing – The process by which managers, given their assigned level of responsibilities, run
day-to-day operations.
• Feedback – Measures provided to operational employees or managers on the performance of
subunits of the organization. These measures are used by employees to adjust a process or a
behavior to achieve goals. See management by exception.
• Financial Accounting – The branch of accounting that is concerned with recording transactions
using generally accepted accounting principles (GAAP) for a business or other economic unit and
with a periodic preparation of various statements from such records.
• Line Department – A unit that is directly involved in the basic objectives of an organization.
• Management by Exception – The philosophy of managing which involves monitoring the
operating results of implemented plans and comparing the expected results with the actual results.
342 Chapter 18 Managerial Accounting Concepts and Principles
This feedback allows management to isolate significant variations for further investigation and
possible remedial action.
• Management (or Managerial) Accounting – The branch of accounting that uses both historical
and estimated data in providing information that management uses in conducting daily
operations, in planning future operations, and in developing overall business strategies.
• Management Process – The five basic management functions of (1) planning, (2) directing, (3)
controlling, (4) improving, and (5) decision making.
• Objectives (Goals) – Developed in the planning stage, these reflect the direction and desired
outcomes of certain courses of action.
• Operational Planning – The development of short-term plans to achieve goals identified in a
business’s strategic plan. Sometimes called tactical planning.
• Planning – A phase of the management process whereby objectives are outlined and courses of
action determined.
• Staff Department – A unit that provides services, assistance, and advice to the departments with
line or other staff responsibilities.
• Strategic Planning – The development of a long-range course of action to achieve business
goals.
• Strategies – The means by which business goals and objectives will be achieved.
Relevant Example Exercises and Exhibits
• Example Exercise 18-1 Management Process
• Exhibit 1 – Financial Accounting and Managerial Accounting
• Exhibit 2 – Partial Organization Chart for Callaway Golf Company
• Exhibit 3 – The Management Process
SUGGESTED APPROACH—Differences in Financial and Managerial
Accounting
Use Transparency Master (TM) 18-1 to review the basic differences between financial and managerial
accounting. It is helpful to point out that financial accounting stresses stewardship of assets (a historical
orientation), while managerial accounting stresses the best alternative uses of assets (a future orientation).
CLASS DISCUSSION—Managerial Accounting Reports
Ask students whether they receive or prepare any financial reports in their jobs, other than the financial
accounting reports discussed in previous chapters. Ask them to describe these reports and comment on
how management uses them to run the business.
WRITING EXERCISE—Managerial Accounting
Instruct your students to write an answer to the following question (TM 18-2):
Why is it permissible to violate generally accepted accounting principles when preparing reports used
strictly by company management?
Chapter 18 Managerial Accounting Concepts and Principles 343
Possible response: Since these reports are for internal use only, they should not provide any influence to
investors about decisions to invest in the company. These reports are for management to aid in the
decision making process. It should be clear to all users that these reports may not follow GAAP.
CLASS DISCUSSION—Management Accountants
The role of the management accountant is to provide management with information needed to plan and
control the operations of a business. The Group Learning Activity below will ask your students to assume
the role of a manager in a variety of business situations. In this role, they must request information from
their company’s management accounting department to assist them in their management functions. This
exercise allows students to experience how management accountants participate in the management
process.
This section also introduces your students to the controller’s position in the typical organizational chart.
This is an opportune time to expose students to the Certificate in Management Accounting (CMA)
program. TM 18-3 outlines the requirements for obtaining this credential. The following website is also
helpful in determining the CMA requirements: http://www.imanet.org/index.asp.
GROUP LEARNING ACTIVITY—Managerial Accounting in the Management
Process
Divide the class into small groups. Handouts 18-1 through 18-5 each presents a manager who needs
information that can be supplied by managerial accounting. Assign each of the groups one of these
scenarios. Ask them to read the scenario and list the information that the manager should request from the
management accounting department.
Possible responses:
Handout 8-1: One possible explanation is a recent change in supplier. If this is the case, the accounting
department can supply cost per yard of material from old supplier verses new supplier. They can then
factor in the increased scrap cost to determine if overall costs are more or less than the previous supplier.
It could be that the new supplier is cheaper per yard up front, but increased scrap cost results in overall
higher cost.
Handout 8-2: Credit cards and ATM cards come with a processing fee that cash does not require. This
additional expense will cut into the bottom line. However, increased cost might be overcome with
increased sales to customers who will spend more with the convenience of shopping with a card.
Accounting can provide an analysis of processing fees to determine the level to which sales must increase
in order to break even.
Handout 8-3: As the new sales manager focusing on Buddy at this time, I would want to know the
following information for the company and for each sales representative individually:
Total sales
Sales returns
344 Chapter 18 Managerial Accounting Concepts and Principles
Uncollectable accounts
Selling expenses
Focusing on uncollectable accounts, sales returns as a percentage of total sales, I would want to examine
if Buddy’s numbers are significantly different from the company and how these ratios look compared to
other high performing sales reps.
Handout 8-4: The manager will need to know what costs are included in the overhead reporting.
Additionally, it would be beneficial to have historical data on these costs, as well as production numbers
for these same time periods. It would also be beneficial to have sales projections for the quarter in
question to match demand with cost.
Handout 8-5: The manager will need to know what materials go into the manufacturing process, the
average amount used in each unit, the average cost for direct materials, the average time to manufacture
the product, average wages for direct labor in the manufacturing process, projected sales for the period,
and the desired ending inventory of finished goods, as well as current finished goods inventory. These
will be a good starting point for discussion of the manufacturing process.
GROUP LEARNING ACTIVITY—Organizational Chart
Ask your students to work in groups to construct an organizational chart for your college. You may want
to give them a list of major departments/divisions within the organization. Once the chart is complete,
instruct students to identify staff and line functions.
SUGGESTED APPROACH—Management Process
Cover the five basic phases of the management process:
a. Planning—used by management to develop the organization’s objectives (goals) and to translate
these objectives into courses of action.
1. Strategic planning—long-term courses of action to achieve goals usually in five to ten years
2. Operational planning—short-term courses of action.
b. Directing—the process by which managers run day-to-day operations.
c. Controlling—consists of monitoring the operating results of implemented plans and comparing the
actual results with the expected results.
d. Improving—uses process information to eliminate the source of problems in a process, so that the
process delivers the right products (services) in the right quantities at the right time.
e. Decision making—part of each of the four management processes above, developing a future plan to
respond to unfavorable performances.
INTERNET ACTIVITY—Resources for Management Accountants
Direct your students to visit the Institute of Management Accountants’ (IMA) Web site at
http://www.imanet.org/index.asp. The IMA is the professional organization supporting management
accountants. To familiarize students with the resources available to management accountants through the
IMA, instruct your students to print out one or more of the following: the IMA’s mission, information on
Chapter 18 Managerial Accounting Concepts and Principles 345
the IMA Ethics Center, the IMA’s Statement of Ethical Professional Practice, or information on the CMA
certification.
OBJECTIVE 2
Describe and illustrate the following costs: direct and indirect costs; direct materials, direct
labor, and factory overhead costs; and product and period costs.
SYNOPSIS
Manufacturing businesses use unique terminology to describe their accounting process. The payment of
cash or the commitment to pay cash in the future is called cost. Direct costs can be directly connected to a
specific cost object. Indirect costs are those that cannot be traced conveniently to the product.
Manufacturing costs can be divided into three categories: direct materials, direct labor, and factory
overhead. Direct materials must be an integral part of the final product. Direct labor refers to the costs of
employees who change the fit, form, or function of the product. Factory overhead costs are those that are
incurred in the manufacturing process. Factory overhead can also include materials and labor costs that
cannot be traced conveniently to the product. Costs can be divided into product and period costs. Product
costs consist of manufacturing costs, direct materials, direct labor, and factory overhead. Periods costs are
selling and administrative costs.
Key Terms and Definitions
• Conversion Costs – The combination of direct labor and factory overhead costs.
• Cost – A payment of cash (or a commitment to pay cash in the future) for the purpose of
generating revenues.
• Cost Object – The object or segment of operations to which costs are related for management’s
use, such as a product or department.
• Direct Costs – Costs that can be traced directly to a cost object.
• Direct Labor Cost – The wages of factory workers who are directly involved in converting
materials into a finished product.
• Direct Materials Cost – The cost of materials that are an integral part of the finished product.
• Factory Burden – Another term for manufacturing overhead or factory overhead.
• Factory Overhead Cost – All of the costs of producing a product except for direct materials and
direct labor.
• Indirect Costs – Costs that cannot be traced directly to a cost object.
• Manufacturing Overhead – Costs, other than direct materials and direct labor costs, that are
incurred in the manufacturing process.
• Period Costs – Those costs that are used up in generating revenue during the current period and
that are not involved in manufacturing a product, such as selling, general, and administrative
expenses.
• Prime Costs – The combination of direct materials and direct labor costs.
• Product Costs – The three components of manufacturing cost: direct materials, direct labor, and
factory overhead costs.
346 Chapter 18 Managerial Accounting Concepts and Principles
Relevant Example Exercises and Exhibits
• Example Exercise 18-2 Direct Materials, Direct Labor, and Factory Overhead
• Example Exercise 18-3 Prime and Conversion Costs
• Example Exercise 18-4 Product and Period Costs
• Exhibit 4 – Guitar-Making Operations of Legend Guitars
• Exhibit 5 – Direct Costs of Legend Guitars
• Exhibit 6 – Indirect Costs of Legend Guitars
• Exhibit 7 – Classifying Direct and Indirect Costs
• Exhibit 8 – Manufacturing Costs of Legend Guitars
• Exhibit 9 – Prime Costs and Conversion Costs
• Exhibit 10 – Examples of Product Costs and Period Costs—Legend Guitars
• Exhibit 11 – Product Costs, Period Costs, and the Financial Statements
SUGGESTED APPROACH
Begin by contrasting merchandising and manufacturing operations. Remind students that merchandisers
purchase a product and sell it. Manufacturers purchase parts and raw materials, make a product, and sell
it. You may want to ask your students to list examples of service, merchandising, and manufacturing
companies.
TMs 18-4 and 18-5 provide information to assist you in reviewing the major categories of manufacturing
costs: direct materials, direct labor, and factory overhead. After explaining these categories, check your
students’ understanding by asking them to complete the writing exercise below.
WRITING EXERCISE—Manufacturing Costs
Ask your students to write the headings of two large columns: title the first column “Product Costs” and
the second column “Period Costs.” Under the “Product Costs” column, divide into three subheadings,
naming them Direct Materials, Direct Labor, and Factory Overhead. “Period Cost” can be divided into
two subheadings of Administrative Cost and Selling Cost. Point out an item in the classroom (such as a
chair, table, or textbook) and instruct students to list the costs necessary to manufacture the item. These
costs should be listed under the appropriate heading.
LECTURE AID—Period Costs
Objective 2 also introduces the term “period costs.” These costs are selling and administrative expenses.
TM 18-6 adds these costs to the diagram previously shown on TM 18-5.
GROUP LEARNING ACTIVITY—Concepts and Terminology
Divide the class into groups of three with one in the middle as a recorder. Give two minutes of working
time on each exercise. You must push them to get them to work each in two minutes. This is important so
they learn that they must know how to classify these costs very quickly. Work each of the Exercises 18-1
through 18-8 at the end of Chapter 18 in the textbook.
Chapter 18 Managerial Accounting Concepts and Principles 347
Use the Instructor’s Resource CD to show correct answers as you progress quickly through these. Again,
stress to the students at the end that they must know how to classify these costs or they will miss many
answers in the future.
OBJECTIVE 3
Describe and illustrate the following statements for a manufacturing business: balance
sheet, statement of cost of goods manufactured, and income statement.
SYNOPSIS
The income statement and balance sheet of a manufacturing business are more complex than service and
merchandising businesses. A manufacturing business has three types of inventory accounts. The materials
inventory account consists of direct and indirect materials that have not yet entered the manufacturing
process. Materials that have entered the manufacturing process but are not yet complete are called the
work in process inventory. The finished goods inventory includes products that have gone completely
through the manufacturing process but have not yet been sold. The income statement for a manufacturing
business primarily differs in the reporting of the goods available for sale. First, the cost of finished goods
available for sale is computed as beginning finished goods inventory + cost of goods manufactured during
the period = cost of finished goods available for sale. After that number is determined, the cost of goods
sold is determined by cost of finished goods available for sale – ending finished goods inventory = cost of
goods sold. The cost of goods manufactured is a separate statement that summarizes the cost of goods
manufactured during the period. An example of the statement of cost of goods manufactured is illustrated
in Exhibit 15 along with its connection to the income statement.
Key Terms and Definitions
• Cost of Finished Goods Available for Sale – The beginning finished goods inventory added to
the cost of goods manufactured during the period.
• Cost of Goods Manufactured – The total cost of making and finishing a product.
• Cost of Goods Sold – The cost of finished goods available for sale minus the ending finished
goods inventory.
• Cost of Merchandise Sold – The cost that is reported as an expense when merchandise is sold.
• Finished Goods Inventory – The direct materials costs, direct labor costs, and factory overhead
costs of finished products that have not been sold.
• Materials Inventory – The cost of materials that have not yet entered into the manufacturing
process.
• Merchandise Available for Sale – The cost of merchandise available for sale to customers
calculated by adding the beginning merchandise inventory to net purchases.
• Statement of Cost of Goods Manufactured – The income statement of manufacturing
companies.
• Work in Process Inventory – The direct materials costs, the direct labor costs, and the applied
factory overhead costs that have entered into the manufacturing process but are associated with
products that have not been finished.
348 Chapter 18 Managerial Accounting Concepts and Principles
Relevant Example Exercises and Exhibits
• Example Exercise 18-5 Cost of Goods Sold, Cost of Goods Manufactured
• Exhibit 12 – Balance Sheet Presentation of Inventory in Manufacturing and Merchandising
Companies
• Exhibit 13 – Income Statements for Merchandising and Manufacturing Businesses
• Exhibit 14 – Flow of Manufacturing Costs
• Exhibit 15 – Manufacturing Company—Income Statement with Statement of Cost of Goods
Manufactured
SUGGESTED APPROACH
Contrast a merchandising and manufacturing business. Use your local gas station as a merchandising
business. It buys and then sells students gasoline without doing anything to the product. This type of
business will have one type of inventory—gasoline, if they do not sell anything else. For a manufacturing
business, use something such as the local sub/sandwich shop at your school; they manufacture or produce
different sandwiches from different meats, cheeses, vegetables, and spreads. They start with the direct
materials just discussed, add direct labor to make the sandwiches, and toss in some cost for the use of the
equipment, building, heat, air conditioner, the oven, the cash register, the indirect labor of the cash
register person, etc. You may even make and bake cookies to demonstrate a manufacturing business as a
bakery business. You can illustrate beginning inventory, work in process inventory, and finished goods
inventory (if you hurry before they eat the cookies) by stopping at various points. This takes a lot of
preparation ahead of time.
The income statement is the first statement that needs preparation in any type of business; so it is with a
manufacturing-type business. Cost of merchandise sold for a merchandising business is figured as shown
below:
Beginning inventory
+ Purchases
= Merchandise available for sale
– Ending inventory
= Cost of merchandise sold
Cost of goods sold is calculated differently for a manufacturing company, due to the flow of costs through
three different inventory accounts: raw materials, work in process, and finished goods.
The statement of cost of goods manufactured shows the flow of costs into and out of raw materials
inventory, then the flow of costs into work in process, and the work in process inventory into finished
goods inventory. (See TM 18-7.)
Chapter 18 Managerial Accounting Concepts and Principles 349
The calculations involved are:
Beginning Inventory—Raw Materials
+ Net Purchases
= Total Raw Materials Available for Use
– Ending Inventory—Raw Materials
= Raw Materials Placed in Production
Beginning Work in Process
+ Raw Materials Placed in Production
+ Labor Charged to Work in Process
+ Overhead Charged to Work in Process
– Ending Work In Process
= Cost of Goods Manufactured
The income statement shows the flow of finished goods inventory into the cost of goods sold. (See TM
18-8.)
The calculations are:
Beginning Finished Goods Inventory
+ Cost of Goods Manufactured
= Cost of Finished Goods Available for Sale
– Ending Finished Goods Inventory
= Cost of Goods Sold
OBJECTIVE 4
Describe the uses of managerial accounting information.
SYNOPSIS
Manufacturing accounting can be useful in many ways. The cost of manufacturing can be used by
managers to determine a profitable selling price for their products. Comparing historical costs can help
control costs over time. Performance reports can be used to identify wastes and investigate downtime
issues. Managerial reports can also be used to identify efficiencies and potential savings. Cost reports can
be used to identify break-even points and set bonuses and sales targets.
SUGGESTED APPROACH
Use the related Cases & Projects as a basis for class discussion.
The uses of managerial accounting reports are limited only by the imagination of the managers who use
them. Some managers want endless details to analyze while others want a few summary items to review.
350 Chapter 18 Managerial Accounting Concepts and Principles
The managerial accounting reports should reflect the needs and styles of the business. The text provides a
few possible managerial uses of accounting information for the guitar manufacturing business discussed.
These can be used as a starting point to generate discussion of other manufacturing businesses that your
students may suggest or be interested in discussing.
Handout 18-1
Managerial Accounting Scenario 1
The manager of a fabric store has noticed a considerable increase in the amount of
defective fabric being scrapped by his store. Clerks notice the defects (such as
irregularities in the weave or color of fabric) when they cut yardage from bolts of fabric.
These defects usually affect only a small portion of the fabric on a bolt. Therefore, when
a clerk discovers a defect, the “bad spot” is cut from the bolt. The clerk fills out a defect
slip, which includes the amount of defective fabric (in yards), the retail price per yard,
and the inventory control number. The defect slip is attached to the fabric and put in a
“defects” bin in the storeroom. Once a month, the assistant manager sends the defect
slips to the accounting department and packages the bad fabric for sale as scrap
material. The accounting department uses the defect slips to write off the defective
inventory in the accounting records.
What information could the manager request from the management accounting
department that might help in attacking the problem of increasing defects?
Handout 18-2
Managerial Accounting Scenario 2
The top management of a fast-food hamburger chain is considering installing point–of–
sale machines that will allow customers to pay for food with an automated teller–
machine card. Previously, the restaurant has accepted only cash.
What information could the management accounting department supply to assist
management with this decision?
Handout 18-3
Managerial Accounting Scenario 3
B Squared Inc. manufactures and sells awnings all over the southeastern United States.
Each state has a sales representative who is paid on commissions. Each salesperson
is responsible for checking the credit of customers as part of the sales process. Buddy
has been the top salesman for the past 5 years in a row. You have been hired as the
new sales manager and after meeting with your sales representatives, there are some
questions being raised as to why Buddy is the top salesperson and the legitimacy of
some of the sales being reported. What information would you request from the
accounting department to help confirm or negate these accusations?
Handout 18-4
Managerial Accounting Scenario 4
You are the newly hired production manager for the XYZ Company manufacturing plant
and have been ask by the VP of manufacturing to provide a budget for the next quarter
production for overhead cost. What information will you need from accounting to assist
in building this report?
Handout 18-5
Managerial Accounting Scenario 5
You are the newly hired production manager for the XYZ Company manufacturing plant
and have been ask by the VP of manufacturing to provide a budget for the next quarter
production for prime cost. What information will you need from accounting to assist in
building this report?
Type Item Description LO(s) Difficulty Time Est BUSPROG AICPA ACBSP – APC Bloom’s EE Excel GL SMH FAI Service Real World Writing Ethics Internet Group
DQ 1 1 Easy 5 min. Analytic Measurement Managerial Characteristics/Terminology Remembering
DQ 2 1 Easy 5 min. Analytic Measurement Managerial Characteristics/Terminology Remembering
DQ 3 2 Easy 5 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
DQ 4 2 Easy 5 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
DQ 5 2 Easy 5 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
DQ 6 3 Easy 5 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
DQ 7 3 Easy 5 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
DQ 8 3 Easy 5 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
DQ 9 3 Easy 5 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
DQ 10 3 Easy 5 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
EX 7 Classifying costs in a service company 2 Easy 10 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
EX 8 Classifying costs 2,3 Moderate 15 min. Analytic Measurement Managerial Accounting Features/Costs Applying
EX 9 Financial statements of a manufacturing firm 3 Moderate 30 min. Analytic Measurement Financial Statements Applying x
EX 10 Manufacturing company balance sheet 3 Easy 10 min. Analytic Measurement Current Assets Applying x
EX 11 Cost of direct materials used in production for a manufacturing company 3 Easy 10 min. Analytic Measurement Managerial Accounting Features/Costs Applying x
EX 12 Costs of good manufactured for a manufacturing company 3 Easy 10 min. Analytic Measurement Managerial Accounting Features/Costs Applying x
EX 13 Costs of good manufactured for a manufacturing company 3 Easy 10 min. Analytic Measurement Managerial Accounting Features/Costs Applying x
EX 14 Income statement for a manufacturing company 3 Easy 10 min. Analytic Measurement Financial Statements Applying
EX 15 Statement of cost of good manufactured for a manufacturing company 3 Moderate 30 min. Analytic Measurement Financial Statements Applying x x
EX 16 Cost of goods sold, profit margin, and net income for a manufacturing company 3 Moderate 15 min. Analytic Measurement Financial Statements Applying x
EX 17 Cost flow relationships 3 Moderate 30 min. Analytic Measurement Managerial Accounting Features/Costs Applying x x
EX 18 Uses of managerial accounting in a service company 4 Moderate 10 min. Analytic Measurement Managerial Accounting Features/Costs Applying
PR 1A Classifying costs 2 Moderate 45 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
PR 2A Classifying costs 2 Moderate 45 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
PR 3A Cost classifications – service company 2 Moderate 45 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
PR 4A Manufacturing income statement, statement of cost of goods manufactured 2,3 Challenging 1.5 hours Analytic Measurement Managerial Accounting Features/Costs Applying x
PR 5A Statement of cost of goods manufactured and income statement for a manufacturing company 2,3 Challenging 1 hour Analytic Measurement Managerial Accounting Features/Costs Applying x x
PR 1B Classifying costs 2 Moderate 45 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
PR 2B Classifying costs 2 Moderate 45 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
PR 3B Cost classifications – service company 2 Moderate 45 min. Analytic Measurement Managerial Accounting Features/Costs Remembering
PR 4B Manufacturing income statement, statement of cost of goods manufactured 2,3 Challenging 1.5 hours Analytic Measurement Managerial Accounting Features/Costs Applying x
PR 5B Statement of cost of goods manufactured and income statement for a manufacturing company 2,3 Challenging 1 hour Analytic Measurement Managerial Accounting Features/Costs Applying x x
HOMEWORK CHART WITH LEARNING OUTCOMES TAGGING
TAGGING
RESOURCES
FOCUS