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How can managers use accounting information to help control manufacturing overhead costs?
Managers compare the actual line item amounts for manufacturing overhead with the budgeted amounts. Managers investigate large differences between actual and budgeted amounts to identify the reasons why actual costs differ from planned or budgeted costs.
What is the Measurement of the Elements of Financial Statements?
The elements of financial statements are measured in dollar amounts.
What is a disclosure note in accounting?
Disclosures notes are part of accounting financial statements as in disclosure notes important information related to amounts or information in financial statement is provided to further clarify any information previously given or any other related information.
What are Manufacturing overhead budget uses?
The manufacturing overhead budget show the expected manufacturing over head costs for the budget period. The budget distinguishes between variable and fixed overhead costs. Companies fluctuate with production volume on the basis of the following rates per direct labor hour: indirect materials $1.00, indirect labor $1.40, utilities $0.40, and maintenance $0.20. Thus, for 6,200 direct labor hours budgeted indirect materials are $6,200 (6,200 x $1), and budgeted indirect labor is $8,680 (6,200 x $1.40). The company recognizes that some maintenance is fixed. The amounts reported for fixed cost are assumed.
What are the proper procedures for a change to the LIFO method of inventory valuation?
Company should adjust its financial statements for each prior period presented. Thus, financial statement info about prior periods will be on the same basis as the new accounting pricipal. It adjusts the carrying amounts of assets and liabilites as of the beginning of the first year presented. It will reflect the cumulative effect on prior periods. Company should also adjust an opening balance of retained earnings or net assets as of the beginning of the first year presented.
