Management Accounting Questions and Answers

1- ) Organizational structure is the hierarchical concept of a firm which outline the levels of authority and respective lines of communication . In an organizational structure one would find the board of directors and middle managers

2- ) Manufacturing cost are costs involved in the manufacture of goods like direct labor

3- ) CGS entails direct costs pertinent to the goods sold by the company like purchases of finished goods

4- ) Income Statement shows the the company to derive the net income (loss ) for a particular period

5- ) Outsourcing comprises the subcontracting a production

process or a product to a third party . For example , significant manufacturing in United States is being outsourced to China due to cheap labor costs

6- ) A job cost system arises whenever the job is unique requiring different amounts of material , labor and overheads . A job card is thus raised to record such costs

7- ) A process cost system is a cost accumulation system for firms that produce similar products during an accounting period . Such products entail cars , similar electronic equipment and more

8- ) Factory labor costs are costs pertinent to labor in the manufacturing division like direct labor

9- ) A stores requisition form is the key document for assigning raw materials costs . Once the production manager requests the goods a stores requisition form is prepared , which outlines the job or process needed . Once completed and approved it is passed to the accounts department in to be recorded respectively in the...