Question 1

Which of the following can be found on the income statements of both a manufacturing and service organization?

Accepted Answer

A)  revenues 
B)  operating income 
C)  administrative expenses 
D)  all of these can be found on both. 
A)  revenues 
B)  operating income 
C)  administrative expenses 
D)  all of these can be found on both.

Question 2

Product costs are expensed

Accepted Answer

A)  when the product is finished. 
B)  when the product unit cost is calculated. 
C)  when the product is sold. 
D)  all of these are correct. 
A)  when the product is finished. 
B)  when the product unit cost is calculated. 
C)  when the product is sold. 
D)  all of these are correct.

Question 3

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-Video rental

Accepted Answer

The answer of Select the appropriate classification of the output...

Question 4

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

Accepted Answer

A) True 
 B)False

Question 5

The cost of janitorial services for a factory building would be classified as indirect labor.

Accepted Answer

A) True 
 B)False

Question 6

MATCHING
Select the appropriate classification for each of the following costs.
a.
Period
b.
Product
-Assembly line worker's wages

Accepted Answer

The answer of MATCHING
Select the appropriate classification for each of...

Question 7

Production costs that are not attached to units that are sold are reported as:

Accepted Answer

A)  selling expenses. 
B)  cost of goods sold. 
C)  administrative costs. 
D)  inventory. 
A)  selling expenses. 
B)  cost of goods sold. 
C)  administrative costs. 
D)  inventory.

Question 8

Gross margin percent equals

Accepted Answer

A)  gross margin/cost of goods sold. 
B)  operating income/sales revenue. 
C)  gross margin/sales revenue. 
D)  sales revenue/gross margin. 
A)  gross margin/cost of goods sold. 
B)  operating income/sales revenue. 
C)  gross margin/sales revenue. 
D)  sales revenue/gross margin.

Question 9

Figure 2-1.
Concam Inc. manufactures television sets. Last month direct materials (electronic components, etc.) costing $500,000 were put into production. Direct labor of $800,000 was incurred, overhead equaled $450,000, and selling and administrative costs totaled $360,000. The company manufactured 8,000 television sets during the month. Assume that there were no beginning or ending work in process balances.
-Refer to Figure 2-1. The total per unit prime cost was:

Accepted Answer

A)  $263.75 
B)  $62.50 
C)  $162.50 
D)  $156.25 
A)  $263.75 
B)  $62.50 
C)  $162.50 
D)  $156.25

Question 10

Property taxes on a factory building would normally be classified as a fixed cost.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following would not be found on an income statement of a service organization?

Accepted Answer

A)  selling expenses 
B)  cost of goods sold 
C)  operating income 
D)  sales revenue 
A)  selling expenses 
B)  cost of goods sold 
C)  operating income 
D)  sales revenue

Question 12

Cost of goods sold is the total product cost of the units sold during a period.

Accepted Answer

A) True 
 B)False

Question 13

Figure 2-3.
Bartlow, Inc. had the following income statement for the month of May.
  
-Refer to Figure 2-3. What was the gross margin percent?

Accepted Answer

A)  52% 
B)  48% 
C)  17% 
D)  19% 
A)  52% 
B)  48% 
C)  17% 
D)  19%

Question 14

MATCHING
Select the appropriate classification for each of the following costs.
a.
Period
b.
Product
-Supplies for factory washroom

Accepted Answer

The answer of MATCHING
Select the appropriate classification for each of...

Question 15

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
a.
direct materials
b.
direct labor
c.
overhead
d.
selling expense
e.
administrative expense
-factory janitorial costs

Accepted Answer

The answer of Select the appropriate classification for each of...

Question 16

Select the appropriate definition of each of the items listed below.
a.
Income Statement
b.
Cost of goods manufactured
c.
Work in process
d.
Gross margin
e.
Operating income
-Cost of partially completed goods

Accepted Answer

The answer of Select the appropriate definition of each of...

Question 17

Materials in the raw materials account do not become direct materials

Accepted Answer

A)  until they are withdrawn from inventory for use in production. 
B)  until the finished product is sold. 
C)  until they are purchased from a vendor. 
D)  none of these are correct. 
A)  until they are withdrawn from inventory for use in production. 
B)  until the finished product is sold. 
C)  until they are purchased from a vendor. 
D)  none of these are correct.

Question 18

Select the appropriate classification for each of the items listed below.
a.
Product cost
b.
Period cost
-Rental cost of executive Lear jet

Accepted Answer

The answer of Select the appropriate classification for each of...

Which of the following can be found on the income statements of both a manufacturing and service organization?

Product costs are expensed

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Video rental

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

The cost of janitorial services for a factory building would be classified as indirect labor.

MATCHING Select the appropriate classification for each of the following costs. a. Period b. Product -Assembly line worker's wages

Production costs that are not attached to units that are sold are reported as:

Gross margin percent equals

Property taxes on a factory building would normally be classified as a fixed cost.

Which of the following would not be found on an income statement of a service organization?

Cost of goods sold is the total product cost of the units sold during a period.

Figure 2-3. Bartlow, Inc. had the following income statement for the month of May. -Refer to Figure 2-3. What was the gross margin percent?

MATCHING Select the appropriate classification for each of the following costs. a. Period b. Product -Supplies for factory washroom

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. a. direct materials b. direct labor c. overhead d. selling expense e. administrative expense -factory janitorial costs

Select the appropriate definition of each of the items listed below. a. Income Statement b. Cost of goods manufactured c. Work in process d. Gross margin e. Operating income -Cost of partially completed goods

Materials in the raw materials account do not become direct materials

Select the appropriate classification for each of the items listed below. a. Product cost b. Period cost -Rental cost of executive Lear jet

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Basic Managerial Accounting Concepts

Which of the following can be found on the income statements of both a manufacturing and service organization?

Product costs are expensed

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Video rental

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

The cost of janitorial services for a factory building would be classified as indirect labor.

MATCHING Select the appropriate classification for each of the following costs. a. Period b. Product -Assembly line worker's wages

Production costs that are not attached to units that are sold are reported as:

Gross margin percent equals

Property taxes on a factory building would normally be classified as a fixed cost.

Which of the following would not be found on an income statement of a service organization?

Cost of goods sold is the total product cost of the units sold during a period.

Figure 2-3. Bartlow, Inc. had the following income statement for the month of May. -Refer to Figure 2-3. What was the gross margin percent?

MATCHING Select the appropriate classification for each of the following costs. a. Period b. Product -Supplies for factory washroom

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. a. direct materials b. direct labor c. overhead d. selling expense e. administrative expense -factory janitorial costs

Select the appropriate definition of each of the items listed below. a. Income Statement b. Cost of goods manufactured c. Work in process d. Gross margin e. Operating income -Cost of partially completed goods

Materials in the raw materials account do not become direct materials

Select the appropriate classification for each of the items listed below. a. Product cost b. Period cost -Rental cost of executive Lear jet

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters