Identify whether each description most likely applies to managerial or financial accounting. 1. Its principles and practices are very flexible. 2. It mainly uses monetary information, and little non-monetary information. 3. Helps managers make planning and control decisions. 4. Its information is often available only after an audit is complete. 5. It focuses mainly on the future of production activities. Diez Company produces sporting equipment, including leather footballs. Identify each of the following costs as direct or indirect. The cost object is a football produced by Diez. 1. Salary of manager who supervises the entire plant 2. Laces to hold football products together 3. Rubber core used to produce football products Depreciation on equipment used to produce footballs 5. Depreciation (straight-line) on leather-cutting equipment Tesla, a vehicle manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object. (Leave no cell blank if there is no effect select "NA - Not a product cost".) Cost by Traceability Period or Product Direct material, Direct labor, or Factory Overhead Prime or Conversion Direct or Indirect 1. Batteries for electric cars 2. Wages to assembly workers 3. Factory water usage 4. Rent on factory building 5. Steering wheels used in cars 6. Factory electricity Identify whether each description most likely applies to managerial or financial accounting. 1. Its principles and practices are very flexible. 2. It mainly uses monetary information, and little non-monetary information. 3. Helps managers make planning and control decisions. 4. Its information is often available only after an audit is complete. 5. It focuses mainly on the future of production activities. Diez Company produces sporting equipment, including leather footballs. Identify each of the following costs as direct or indirect. The cost object is a football produced by Diez. 1. Salary of manager who supervises the entire plant 2. Laces to hold football products together 3. Rubber core used to produce football products Depreciation on equipment used to produce footballs 5. Depreciation (straight-line) on leather-cutting equipment Tesla, a vehicle manufacturer, incurs the following costs. (1) Classify each cost as either a product or a period cost. If a product cost, identify it as direct materials, direct labor, or factory overhead, and then as a prime and/or conversion cost. (2) Classify each product cost as either a direct cost or an indirect cost using the product as the cost object. (Leave no cell blank if there is no effect select "NA - Not a product cost".) Cost by Traceability Period or Product Direct material, Direct labor, or Factory Overhead Prime or Conversion Direct or Indirect 1. Batteries for electric cars 2. Wages to assembly workers 3. Factory water usage 4. Rent on factory building 5. Steering wheels used in cars 6. Factory electricity
