Professional Documents
Culture Documents
Chapter 18
Introduction to Managerial Accounting
Review Questions
1. The primary purpose of managerial accounting is to provide information to help managers plan
and control operations.
2. Planning means choosing goals and deciding how to achieve them, whereas, controlling means
implementing the plans and evaluating operations by comparing actual results to the budget.
3. Financial accounting and managerial accounting differ on the following 6 dimensions: (1) primary
users, (2) purpose of information, (3) focus and time dimension of the information, (4) rules and
re-strictions, (5) scope of information, and (6) behavioral.
4. Management accountability is the manager’s responsibility to the various stakeholders of the com-
pany. Stakeholders have an interest of some sort in the company, and include customers, creditors,
suppliers, employees, and investors. Managerial accounting provides information to help managers
make wise decisions, effectively manage the resources of the company, evaluate operations, plan,
and control. These things are requisite to meeting responsibilities to the company’s stakeholders.
For example: Making timely payments to suppliers, providing a return on investors’ investment,
re-paying creditors, providing a safe work environment, and providing products that are safe and
de-fect-free.
5. The four IMA standards of ethical practice and a description of each follow.
I. Competence.
• Maintain an appropriate level of professional expertise.
• Perform professional duties in accordance with relevant laws, regulations, and technical
standards.
• Provide decision support information and recommendations that are accurate, clear,
concise, and timely.
• Recognize and communicate professional limitations or other constraints that preclude re-
sponsible judgment or successful performance of an activity.
II. Confidentiality.
• Keep information confidential except when disclosure is authorized or legally required.
• Inform all relevant parties regarding appropriate use of confidential information. Monitor
subordinates’ activities to ensure compliance.
• Refrain from using confidential information for unethical or illegal advantage.
6. Service companies sell time, skills, and knowledge. They seek to provide services that are high
quality with reasonable prices and timely delivery. Examples of service companies include phone
service companies, banks, cleaning service companies, accounting firms, law firms, medical physi-
cians, and online auction services.
7. Merchandising companies resell products they buy from suppliers. Merchandisers keep an inventory
of products, and managers are accountable for the purchasing, storage, and sale of the products. Ex-
amples of merchandising companies include toy stores, grocery stores, and clothing stores.
8. Product costs are all costs of a product that GAAP requires companies to treat as an asset for exter-
nal financial reporting. These costs are recorded as an asset and not expensed until the product is
sold. Product costs include direct materials, direct labor, and manufacturing overhead.
9. Period costs are operating costs that are expensed in the same accounting period in which they are
incurred, whereas product costs are recorded as an asset and not expensed until the accounting peri-
od in which the product is sold. Period costs are all costs not considered product costs. On the in-
come statement, Cost of Goods Sold (a product cost) is subtracted from Sales Revenue to compute
gross profit. Period costs are subtracted from gross profit to determine operating income.
10. Merchandising companies resell products they previously bought from suppliers, whereas manufac-
turing companies use labor, equipment, supplies, and facilities to convert raw materials into new
fin-ished products. In contrast to merchandising companies, manufacturing companies have a broad
range of production activities that require tracking costs on three kinds of inventory.
Raw Materials Inventory includes materials used to manufacture a product. Work-in-Process Inven-
tory includes goods that have been started in the manufacturing process but are not yet complete.
Finished Goods Inventory includes completed goods that have not yet been sold.
12. For a manufacturing company, the activity in the Finished Goods Inventory account provides the
information for determining Cost of Goods Sold. A manufacturing company calculates Cost of
Goods Sold as Beginning Finished Goods Inventory + Cost of Goods Manufactured – Ending Fin-
ished Good Inventory. In addition, a manufacturing company must track costs from Raw Materials
Inventory and Work-in-Process Inventory in order to compute Cost of Goods Manufactured used
in the previous equation.
For a merchandising company, the activity in the Merchandise Inventory account provides the in-
formation for determining Cost of Goods Sold. A merchandising company calculates Cost of Goods
Sold as Beginning Merchandise Inventory + Purchases and Freight In – Ending Merchandise Inven-
tory.
13. A direct cost is a cost that can be easily and cost-effectively traced to a cost object (which is any-
thing for which managers want a separate measurement of cost). An indirect cost is a cost that can-
not be easily or cost-effectively traced to a cost object.
14. The three product costs for a manufacturing company are direct materials, direct labor, and
manufac-turing overhead. Direct materials are materials that become a physical part of a finished
product and whose costs are easily traceable to the finished product. Direct labor is the labor cost of
the employ-ees who convert materials into finished products. Manufacturing overhead includes all
manufactur-ing costs except direct materials and direct labor, such as indirect materials, indirect
labor, factory depreciation, factory rent, and factory property taxes.
15. Examples of manufacturing overhead include costs of indirect materials, indirect labor, repair and
maintenance in factory, factory utilities, factory rent, factory insurance, factory property taxes, man-
ufacturing plant managers’ salaries, and depreciation on manufacturing buildings and equipment.
16. Prime costs are direct materials plus direct labor. Conversion costs are direct labor plus manufactur-
ing overhead. Note that direct labor is classified as both a prime cost and a conversion cost.
17. Cost of Goods Manufactured is calculated as Beginning Work-in-Process Inventory + Direct Materi-
als Used + Direct Labor + Manufacturing Overhead – Ending Work-in-Process Inventory.
19. A service company calculates unit cost per service as Total Costs / Total number of services provid-
ed.
20. A merchandising company calculates unit cost per item as Total Cost of Goods Sold / Total
number of items sold.
Short Exercises
S18-1
a. FA
b. MA
c. MA
d. FA
e. FA
S18-2
1. e.
2. f.
3. d.
4. a.
5. b.
S18-3
1. d.
2. c.
3. e.
4. a.
5. b.
S18-4
a. Confidentiality
b. Integrity
c. Competence (skipping the session); Integrity (company-paid conference)
d. Competence
e. Credibility; Integrity
Language: Portuguese
D. IGNEZ
DE CASTRO.
PELO LICENCIADO
MANOEL DE AZEVEDO
Conimbricense.
OFFERECIDA AO SENHOR
GUILHERME JOAQUIM
PAES VELHO.
PELO PADRE
JOÃO DE GOUVEA
Prisbitero do habito de S. Pedro.
LISBOA:
Na Officina JOAQUINIANNA DA MUSICA DED.
Bernardo Fernandes Gayo, Morador na rua das Mudas.
M. DCC. XLV.
Com todas as licenças necessarias.
DEDICATORIA
AO SENHOR
GUILHERME JOAQUIM
PAES VELHO.
JUSTO era, que huma taõ excellente obra procurasse hum assyllo taõ
excelso. Publica-se por meyo da estanpa ao Mundo as Saudades de D.
Ignez de Castro, Rainha taõ infeliz, como formoza, e vendo eu que he
perigozo entregar nas mãos do vulgo cousa, para cuja seja materia a
sua distracçaõ, logo me occoreo, que a offerta só era conveniente em V.
M. porque sey, que como V. M. he dado às letras, naõ deyxarà de
amparar hum milagre da Poesia, e juntamente escurecer o alvedrio de
hum Zoylo. Materia difficel seria o querer expór ao publico a Genelogia
de V. M. que como conhecida naõ carece de explicação, mas só lembro a
V. M. que o sangue, que lhe pulsa pelas veyas, mais logra de soberano,
que de nobre. Dedicar o presente papel a V. M. he como divida, porque
confórme, diz Seneca, só se conhecem as remuneraçoens pelo
offerecimento, por essa causa quando eu tenho recebido taõ dilatados
favores, porque razaõ naõ heyde de manifestar o quanto sou devedor a
V. M. Aceyte pois o presente obsequio como divida, porque só assim
lograrey eu a ventura de acertar quando me lembro da sua generosidade
para o restituir. A pessoa de V. M. guarde Deos pelos annos, que todos
os seus amigos dezejamos.
Amigo, e Venerador de V. M.
O P. Joaõ de Gouvea
SAUDADES DE DONNA IGNEZ DE CASTRO.
I.
II.
III.
Mas Ignez só, que por penar vivia,
Naufragava em soluços cada instante,
Ignez, aquella Ignez, que amor fazia
Por lhe dobrar as magoas mais constante:
Aquella, em cujas graças competia
Ser formosa, discreta, e ser amante,
Em cujas prendas naõ tiveraõ parte
Artificios da industria, invençoẽs da arte.
IV.
V.
VI.
VII.
VIII.
IX.
X.
Entre os braços de Pedro, ardẽte Fragoa,
Se encosta Ignez sem vida, e sem sentido,
Que multiplîca a dôr, e dobra a magoa
Lograr presente o bem, que he já perdido:
Dos olhos sólta dous chuveiros de agoa,
Oceànos de neve, onde Cupîdo
Quiz da belleza já colhendo as velas,
Chegasse a tempestade até as estrellas.
XI.
XII.
XIII.
XIV.
XV.
XVI.
XVII.
Só com vosco, Senhor, irá segura,
Sem que mortal achaque lhe aconteça;
Porque talvez do Fado a sorte dura
Fóra deste meu peito a desconheça:
Nem poderá temer minha ventura,
Que sombra de pesar vos entristeça;
Pois farey no tormento mais esquivo
Correr por conta da alma o sensitivo.
XVIII.
XIX.
XX.
XXI.
XXII.
XXIII.
XXIV.
Qual quando na manhaã naufrága o dia
Nos undósos crystaes, que o Céo desata,
O Jasmim desmayado se agonîa
Dos acháques da gotta, que o maltrata:
Em desares trocando a galhardia,
Icaro já nas agoas se retrata,
O que lisonja foy taõ prateada,
Se no prado jasmim, nas ondas nada.
XXV.
XXVI.
XXVII.
XXVIII.
XXIX.
XXX.
XXXI.
Sucçeda á Primavera o secco Estio,
Á serena manhaã tarde calmosa,
Seja manso regato, quem foy rio,
Sejaõ seccas reliquias, quem foy Rosa:
Seja, quem Cravo foy, cadáver frio,
Seja quem foy Jasmim, cinza olorosa
Seja tudo á mudança em fim sujeito,
Que amor firme será dentro em meu peito.
XXXII.
XXXIII.
XXXIV.
XXXV.
XXXVI.
XXXVII.
XXXVIII.
Já nos braços da Aurora, que assomava,
Renascido chorava o novo dia,
Quando Ignez saudosa entaõ negava
A seu triste pesar a companhia:
A solidaõ do campo se apartava,
Onde só lamentava, e só gemia;
Porque mais no rigor de seus retiros
A piedade faltasse a seus suspiros.
XXXIX.
XL.
XLI.
XLII.
XLIII.
XLIV.
XLV.
E vós Rosas no mimo de huma Aurora
Lograis de vossa adôrno a pompa bella,
Que talvez por firmar vossa melhóra,
Tivéstes no nascer tão boa estrella:
Mas oh! que no pesar, que chóro agora,
Nestes fogosos ays, que o peito anéla,
Escolhe minha estrella em triste forte
Por pena a vida, por lisonja a morte.
XLVI.
XLVII.
XLVIII.
XLIX.
L.
LI.
LII.
Naõ me póde obrigar outro motivo,
Se naõ chorar-vos só por naturesa,
Que quer, que seja amor por excessivo
Tributo natural, o que he finesa:
Que como a seu querer sujeita vivo,
Rendida a seu querer captiva, e presa,
Do pranto, que saudosa me convinha,
Se naõ pode isentar a affeyçaõ minha.
LIII.
LIV.
LV.
LVI.
LVII.
LVIII.
LIX.
Menos dor, menor danno em fim tivéra,
Menos cruel sentira o meu cuidado,
Quando neste rigor, que padecera,
Me podéra esquecer do que hey logrado:
Mas ay! que nesta dor outra me espera,
E hum mal outro me traz apensionado;
Pois chego a padecer em meu sentido
O mal, que passo, o gosto, q̃ hey perdido.
LX.
LXI.
LXII.
LXIII.
LXIV.
LXV.
LXVI.
Oh! suspendey sentença taõ penosa,
Mitigay por hum pouco a crueldade,
Que naõ podeis dar morte rigorosa,
Que possa matar mais, que a saudade:
Mas já que minha dôr menos piedosa,
Vos naõ póde causar nova piedade,
Naõ me roubeis meus filhos, taõ queridos,
Unica prenda só de meus sentidos.
LXVII.
LXVIII.
LXIX.
LXX.
FIM
da primeyra parte.
SEGUNDA PARTE
I.
II.
III.
Á ventura se queyxa, que a beldade
Fosse causa da perda, porque unida
Naquellas prendas da melhor idade,
Fez acabar rigôr, o que era vida;
Mas a Parca tyranna por vaidade
Solicita bellesas advertida;
Porque dellas talvez se naõ cuidára,
Morre fora huma prenda, e só matára.
IV.
V.
VI.