Question 1

Which of the following is a characteristic of a service company?

Accepted Answer

A) Service companies make a product. 
B) Service companies have a single category of inventory. 
C) Service companies generally have no tangible products to sell. 
D) Service companies transform raw materials into finished goods. 
A) Service companies make a product. 
B) Service companies have a single category of inventory. 
C) Service companies generally have no tangible products to sell. 
D) Service companies transform raw materials into finished goods. C

Question 2

Macy's (the department store chain)classifies its clothing held for sale as

Accepted Answer

A) merchandise inventory. 
B) raw materials inventory. 
C) work in process inventory. 
D) finished goods inventory. 
A) merchandise inventory. 
B) raw materials inventory. 
C) work in process inventory. 
D) finished goods inventory. A

Question 3

A(n)________ cost is one whose total amount changes in direct proportion to a change in volume.

Accepted Answer

A) fixed 
B) irrelevant 
C) variable 
D) mixed 
A) fixed 
B) irrelevant 
C) variable 
D) mixed C

Question 4

Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted).   What was operating income?

Accepted Answer

A) $2,530 
B) $4,000 
C) $3,350 
D) $1,900 
A) $2,530 
B) $4,000 
C) $3,350 
D) $1,900

Question 5

Pink Ribbon Shoppe, a clothing retailer, had the following total costs as grouped by value chain element:   What were the company's inventoriable costs?

Accepted Answer

A) $142,000 
B) $17,000 
C) $72,000 
D) $89,000 
A) $142,000 
B) $17,000 
C) $72,000 
D) $89,000

Question 6

Which type(s)of companies prepare income statements and balance sheets?

Accepted Answer

A) Service company 
B) Merchandising company 
C) Manufacturing company 
D) All of these types of companies 
A) Service company 
B) Merchandising company 
C) Manufacturing company 
D) All of these types of companies

Question 7

Match between columns
                        Premises: cost of insurance on a new vehicle when evaluating purchase of new vehicle
cost of previous year's insurance policy on old equipment being evaluated for replacement
original cost of old equipment that is being evaluated for replacement
cost of new equipment that is under evaluation to replace used equipment
accumulated depreciation on old equipment being evaluated for replacement
cost of roof repair made on rental property last year when evaluating sale of rental property

Accepted Answer

The Answer of irrelevant and relevant is...

Question 8

Fit Apparel Company reports the following data for its first year of operation.   What are the total manufacturing costs?

Accepted Answer

A) $650,000 
B) $835,000 
C) $740,000 
D) $675,000 
A) $650,000 
B) $835,000 
C) $740,000 
D) $675,000

Question 9

London Plastics has monthly fixed costs of $84,000, while its variable costs are $4.00 per unit. If the sales price of a unit is $15.00 and London Plastics sell 14,000 units, the company's average fixed costs per unit will be

Accepted Answer

A) $6.00 per unit. 
B) $10.00 per unit. 
C) $4.00 per unit. 
D) $11.00 per unit. 
A) $6.00 per unit. 
B) $10.00 per unit. 
C) $4.00 per unit. 
D) $11.00 per unit.

Question 10

Which of the following is an example of direct labor?

Accepted Answer

A) Wages of a managerial accountant 
B) Wages of a machine operator 
C) Salary of the vice-president of operations 
D) Wages of the CFO 
A) Wages of a managerial accountant 
B) Wages of a machine operator 
C) Salary of the vice-president of operations 
D) Wages of the CFO

Question 11

Which statement describes direct materials in a manufacturing setting?

Accepted Answer

A) Direct materials are used to determine total manufacturing overhead. 
B) Direct materials are used to determine total inventoriable product costs. 
C) Direct materials cannot be separately and conveniently traced. 
D) Direct materials do not become part of the finished product. 
A) Direct materials are used to determine total manufacturing overhead. 
B) Direct materials are used to determine total inventoriable product costs. 
C) Direct materials cannot be separately and conveniently traced. 
D) Direct materials do not become part of the finished product.

Question 12

Among other products, Nabisco makes Oreo cookies. Which type of company is Nabisco?

Accepted Answer

A) Service 
B) Manufacturer 
C) Retailer 
D) Wholesaler 
A) Service 
B) Manufacturer 
C) Retailer 
D) Wholesaler

Question 13

How do variable costs per unit behave?

Accepted Answer

A) They decrease as production increases. 
B) They increase as production decreases. 
C) They decrease as production decreases. 
D) They remain the same throughout production levels within the relevant range. 
A) They decrease as production increases. 
B) They increase as production decreases. 
C) They decrease as production decreases. 
D) They remain the same throughout production levels within the relevant range.

Question 14

Selected information regarding a company's most recent quarter follows (all data in thousands).   What was manufacturing overhead for the quarter?

Accepted Answer

A) $230 
B) $450 
C) $570 
D) $580 
A) $230 
B) $450 
C) $570 
D) $580

Question 15

Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year:   What is operating income?

Accepted Answer

A) $154,500 
B) $56,000 
C) $42,000 
D) $46,000 
A) $154,500 
B) $56,000 
C) $42,000 
D) $46,000

Question 16

Product costs and period costs receive similar treatment when presented in the financial statements.

Accepted Answer

A) True 
 B)False

Question 17

Joe's Bottling Company provided the following expense information for July:   What is the total cost for the marketing category of the value chain?

Accepted Answer

A) $71,000 
B) $179,000 
C) $186,000 
D) $244,000 
A) $71,000 
B) $179,000 
C) $186,000 
D) $244,000

Question 18

Rent on a factory building would be considered to be a ________ cost.

Accepted Answer

A) product 
B) period 
C) direct 
D) none of the above 
A) product 
B) period 
C) direct 
D) none of the above

Question 19

Before these materials are used to manufacture its cars, Toyota classifies steel, glass, and plastic as

Accepted Answer

A) raw materials inventory. 
B) finished goods inventory. 
C) work in process inventory. 
D) merchandise inventory. 
A) raw materials inventory. 
B) finished goods inventory. 
C) work in process inventory. 
D) merchandise inventory.

Question 20

Selected information regarding a company's most recent quarter follows (all data in thousands).   What was the ending raw materials inventory?

Accepted Answer

A) $ 400 
B) $ 770 
C) $ 150 
D) $ 750 
A) $ 400 
B) $ 770 
C) $ 150 
D) $ 750

Which of the following is a characteristic of a service company?

Macy's (the department store chain)classifies its clothing held for sale as

A(n)________ cost is one whose total amount changes in direct proportion to a change in volume.

Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted). What was operating income?

Pink Ribbon Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: What were the company's inventoriable costs?

Which type(s)of companies prepare income statements and balance sheets?

Fit Apparel Company reports the following data for its first year of operation. What are the total manufacturing costs?

London Plastics has monthly fixed costs of $84,000, while its variable costs are $4.00 per unit. If the sales price of a unit is $15.00 and London Plastics sell 14,000 units, the company's average fixed costs per unit will be

Which of the following is an example of direct labor?

Which statement describes direct materials in a manufacturing setting?

Among other products, Nabisco makes Oreo cookies. Which type of company is Nabisco?

How do variable costs per unit behave?

Selected information regarding a company's most recent quarter follows (all data in thousands). What was manufacturing overhead for the quarter?

Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: What is operating income?

Product costs and period costs receive similar treatment when presented in the financial statements.

Joe's Bottling Company provided the following expense information for July: What is the total cost for the marketing category of the value chain?

Rent on a factory building would be considered to be a ________ cost.

Before these materials are used to manufacture its cars, Toyota classifies steel, glass, and plastic as

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

Introduction to Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 2: Building Blocks of Managerial Accounting

Which of the following is a characteristic of a service company?

Macy's (the department store chain)classifies its clothing held for sale as

A(n)________ cost is one whose total amount changes in direct proportion to a change in volume.

Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted). What was operating income?

Pink Ribbon Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: What were the company's inventoriable costs?

Which type(s)of companies prepare income statements and balance sheets?

Fit Apparel Company reports the following data for its first year of operation. What are the total manufacturing costs?

London Plastics has monthly fixed costs of $84,000, while its variable costs are $4.00 per unit. If the sales price of a unit is $15.00 and London Plastics sell 14,000 units, the company's average fixed costs per unit will be

Which of the following is an example of direct labor?

Which statement describes direct materials in a manufacturing setting?

Among other products, Nabisco makes Oreo cookies. Which type of company is Nabisco?

How do variable costs per unit behave?

Selected information regarding a company's most recent quarter follows (all data in thousands). What was manufacturing overhead for the quarter?

Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: What is operating income?

Product costs and period costs receive similar treatment when presented in the financial statements.

Joe's Bottling Company provided the following expense information for July: What is the total cost for the marketing category of the value chain?

Rent on a factory building would be considered to be a ________ cost.

Before these materials are used to manufacture its cars, Toyota classifies steel, glass, and plastic as

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

Introduction to Managerial Accounting

Job Costing

Activity-Based Costing, Lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters