Exercise 14-1 Sources of accounting information LO C1 Both managerial accounting and financial accounting provide useful information to decision makers. Indicate in the following table the primary source of information for each business decision Primary Information Source Business Decision 1. Determine whether to lend to a company 2. Evaluate a purchasing department's performance 3. Report financial performance to board of directors 4. Estimate product cost for a new line of shoes 5. Plan the 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 Exercise 14-2 Cost classification LO C2 Listed here are product costs for the production of soccer balls. Identify each cost (a) as either fixed or variable and (b) as either direct or indirect by selecting the appropriate dropdowns. Variable or Fixed Director Indirect Product Cost 1. Leather covers for soccer balls 2. Annual fiat fee paid for office security 3. Coolants for machinery 4. Wages of assembly workers 5. Lace to hold leather together 6. Taxes on factory 7. Machinery depreciation (straight-line) Itify each of TechPro's costs below as (a) variable or fixed and (b) direct or indi ume the cost object is an individual class. Variable or Fixed Direct or Indirect Depreciation on classroom building Monthly Internet connection cost Instructional manuals for students Travel expenses for salesperson Depreciation on computers used for classes Instructor wage (per class) Listed below are costs of providing an airline service. Classify each cost as (a) either variable or fixed, and (b) either direct or i cost object to be a flight. Flight attendants and pilots are paid based on Cost Variable or Fixed Direct or Indirect 1. Advertising 2. Beverages and snacks 3. Regional vice-president salary 4. Depreciation on ground equipment 5. Fuel and oil used in planes 6. Flight attendant wages 7. Pilot wages 8. Aircraft maintenance manager salary 9. Customer service salaries LE