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 Direct or indirect Product Cost 1. Machinery depreciation (straight-line) 2. Lace to hold leather together 3. Taxes on factory 4. Wages of assembly workers 5. Coolants for machinery 6. Annual flat fee paid for factory security 7. Leather covers for soccer balls