1) You are owner and operator of a small company - the Cupcake Factory. Classify each of the following as direct materials, direct labor, selling and administrative expense or factory overhead:

a) Depreciation Expense - Factory

b) Baker's Wages

c) Depreciation Expense - Office

d) Cupcake Mix

e) Sales Commissions

f) Cake Frosting

g) Factory Rent

2) Describe the characteristics of an effective management accounting report

3) Describe the characteristics of a good management accountant

4) What is a direct labor cost ?

5) What is a direct material cost ?

6) What is a factor overhead cost ?

7) Refer to # 4 - 6. Give two examples of each.

8) Define prime cost.

9) Define conversion cost

10) Which of these is not a prime cost ?

a) Supervisor's Wages

b) Direct Labor Wages

c) Machine Operator Wages

d) Assembly Line Wages

11) Describe the three types of inventories used by manufacturing firms

12) Describe period costs.

13) Describe product costs

14) Which of these would appear in the Statement of Cost of Goods Manufactured:

a) Selling Costs

b) Administrative Costs

c) Finished Goods

d) Work in Process