Managerial Accounting Has Become More Important in Service Industries Due

question 55

Multiple Choice

Managerial accounting has become more important in service industries due to

• A)the decline of the manufacturing sector has freed up many accountants.
• B)service delivery is extremely complex and requires proper monitoring.
• C)the economy has become more service-oriented recently.
• D)the increase in complexity in computer systems requires accounting specialists.

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Definitions:

Direct Material Cost

The cost of raw materials and components that are directly used in the production of a product.

Labor Quantity Variance

The difference between the actual hours worked and the standard hours allowed for the work performed, multiplied by the standard hourly wage rate.

Produced

The completed output of goods or services as a result of manufacturing or production processes.

Materials Price Variance

The difference between the actual cost of materials used in production and the expected (or standard) cost of those materials.