Question

5. The Institute of Management Accountants (IMA) provides formal guidance to help in choosing ethically acceptable courses of action. 6. Before purchasing an Enterprise Resource Planning (ERP) system, companies must confirm that the benefits of an ERP system will outweigh the costs of implementation. 7. Product costs are always expensed in the period when they are incurred. 8. The three categories of manufacturing costs include direct materials, manufacturing overhead, and selling costs 9. Manufacturing overhead consists of all costs related to the production process other than direct materials and direct labor. 10. The term "factory burden" is synonymous with manufacturing overhead.

true or false

Answer 1

Solutions :.

5.True - IMA Statement of Ethical Professional Practice states that IMA has been committed to the highest standards of ethical accepatable course of action for both for its members and the profession at large,also by developing its first written code of ethics: Standards of Ethical Conduct of Management Accountants.

6 True - Erp Installation requires a significant amount of Investment are expensive to implement, but if they are not constantly reviewed they might  get obsolete which may lead to a significant loss to the organization and may also result in loss of opportunities in terms of customer satisfaction hence,companies should confirm that the benefits outweigh the cost

7. False - Product cost are related to the inventory and are inventorial hence they are expensed when the products are sold unlike period cost are Expensed when they are incurred.

8.False - The three categories of Manufacturing Overhead are as  direct materials cost, direct labor cost and manufacturing overhead. Selling costs include after sale service, Logistics etc

9 True - Manufacturing overhead includes all the other costs in manufacturing other than direct materials costs and  direct labor costs. It is  also referred as the factory overhead cost  or production overhead.

10.True - Manufacturing Overhead is also referred to as Factory burden , Factory Overhead has all are indirect cost which does not include direct material and direct labour