Briefly describe some differences between financial accounting and managerial accounting.

What is a line department? What is a staff department? An accountant would be in which category, line or staff?

Name 4 management functions. These can be from the textbook or from the article I wrote that is posted in the Chapter 18 materials.

There are three types of manufacturing costs; define each one: a. Direct Materials b. Direct Labor c. Factory Overhead

Name 6 different types of cost that would be considered factory overhead. (You may wish to refer to the article on Manufacturing Costs posted in the Chapter 18 materials.)

What are indirect materials and indirect labor?

Define each of the following a. Prime Costs b. Conversion Costs

What is a product cost? What is a period cost? Direct materials, direct labor and factory overhead are in which category, product or period costs?

For a manufacturer, there are three inventory accounts that appear on the balance sheet. Name and describe each of these inventory accounts.

On the income statement of a merchandising company, the cost of goods sold would be calculated as: Beginning Inventory + Purchases Ending Inventory = Cost of Goods Sold. How would this formula be expressed in the case of a manufacturer?

A major challenge of Chapter 18 is the Cost of Goods Manufactured (COGM) statement. You should look at a COGM statement (try the one I posted as COGM Example with color emphasis in the Chapter 18 materials). You can learn the COGM (and COGS) calculations most efficiently by breaking down the statement in smaller formulas. a. How is the cost of direct materials used calculated? b. How is total manufacturing cost incurred calculated? c. How is cost of goods manufactured calculated? d. How is cost of goods sold calculated on the income statement? Note: in the COGM Example, you can see multiple views of the same statement by clicking on the blue links at the top. Look for DM Used, TMC Incurred, COGM Calc, and COGS links.