Exercise 14-1 Managerial vs. financial accounting 31 ndicate whether each decision is most likely to be made using managerial accounting information or financial accounting information. Business Decision 1. Determine whether to lend to a company...... 2. Evaluate a purchasing department's performance. 3. Report financial performance to shareholders. 4. Estimate product cost for a new line of shoes.. 5. Plan the manufacturing budget for next quarter. 6. Measure profitability of an individual store. 7. Prepare financial reports according to GAAP 8. Determine location and size for a new plant... Primary Information Source 80 M F M Exercise 14-2 Classifying direct and indirect costs C2 Listed here are product costs for production of soccer balls. Classify each cost as either direct or indirect. Product Cost Direct or Indirect Product Cost Direct or Indirect 1. Leather covers for soccer balls.... D 6. Taxes on factory...... H 2. Annual flat fee paid for factory security... I I 7. Machinery depreciation (straight-line). 3. Coolants for machinery D 8. Rubber bladder interior for balls... D 4. Wages of product assembly workers.. 9. Ink for labeling soccer balls. A 5. Factory supervisor salary. 10. Factory building rent.. Exercise 14-4 Classifying costs for a service company C2 Listed below are costs of services provided by an airline company. Consider the cost object to be a flight. Flight attendants and pilots are paid based on hours of flight time Classify each cost as direct, indirect, selling, or general and administrative. Cast 1. Advertising 2. Beverages served on plane 3. Accounting manager selery. 4. Depreciation phaighs An) on plane Classification C 5. Fail used for plane fight..... 6 Flight attendant wages for flight.. 2. Arcraft maintenance manager salary.. 7. Pot wages for fight. Classification