The document discusses key concepts in managerial accounting including: 1) The distinguishing features of managerial accounting such as its focus on decision making and strategic cost management. 2) The three broad functions of management: planning, directing, and controlling. 3) The three classes of manufacturing costs: direct materials, direct labor, and manufacturing overhead.

6. Comparing Managerial and Financial Accounting Differences LO 1 Explain the distinguishing features of managerial accounting .

11. Organizational Structure Within a company, organization charts show: The interrelationships of activities and The delegation of authority and responsibility

17. Manufacturing Costs Materials LO 3 Define the three classes of manufacturing costs. Raw Materials Basic materials and parts used in manufacturing process Direct Materials Raw materials that can be physically and directly associated with the finished product during the manufacturing process Materials

19. Manufacturing Costs Labor LO 3 Define the three classes of manufacturing costs. Direct Labor Work of factory employees that can be physically and directly associated with converting raw materials into finished goods Indirect Labor Work of factory employees that has no physical association with the finished product or for which it is impractical to trace costs to the goods produced

23. Product Versus Period Costs LO 4 Distinguish between product costs and period costs .

24. Manufacturing Costs in Financial Statements LO 5 Explain the difference between a merchandising and a manufacturing income statement. Income Statement The income statement for a manufacturer is similar to that of a merchandiser except for the cost of goods sold section. CGS

25. Manufacturing Costs in Financial Statements Cost of Goods Sold Components Merchandiser versus Manufacturer LO 5 Explain the difference between a merchandising and a manufacturing income statement.

26. Manufacturing Costs in Financial Statements Cost of Goods Sold Section of the Income Statement LO 5 Explain the difference between a merchandising and a manufacturing income statement .

27. Manufacturing Costs in Financial Statements Determining the Cost of Goods Manufactured LO 6 Indicate how cost of goods manufactured is determined . Work in Process – partially completed units of product Total Manufacturing Costs – sum of direct material costs, direct labor costs, and manufacturing overhead; all incurred in the current period

28. Manufacturing Costs in Financial Statements LO 6 Indicate how cost of goods manufactured is determined .

30. Manufacturing Costs in Financial Statements Balance Sheet - Inventories LO 7 Explain the difference between a merchandising and a manufacturing balance sheet