Question 1

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

Accepted Answer

A) $244,000 
B) $186,000 
C) $179,000 
D) $123,000 
A) $244,000 
B) $186,000 
C) $179,000 
D) $123,000

Question 2

A marginal cost is the cost of making one more unit of a product.

Accepted Answer

A) True 
 B)False

Question 3

In addition to cost of goods manufactured, which of the following is needed to compute the cost of goods sold for a manufacturer?

Accepted Answer

A) Beginning work in process inventory less ending work in process inventory 
B) Ending work in process inventory less beginning work in process inventory 
C) Ending finished goods less beginning finished goods 
D) Beginning finished goods less ending finished goods 
A) Beginning work in process inventory less ending work in process inventory 
B) Ending work in process inventory less beginning work in process inventory 
C) Ending finished goods less beginning finished goods 
D) Beginning finished goods less ending finished goods

Question 4

Page's sells books. The following information summarizes the company's operating expenses for the year:   What is gross profit?

Accepted Answer

A) $62,000 
B) $9,000 
C) $65,000 
D) $117,000 
A) $62,000 
B) $9,000 
C) $65,000 
D) $117,000

Question 5

Which of the following would not be considered a direct material for a mattress?

Accepted Answer

A) Fabric 
B) Lumber 
C) Glue 
D) Steel 
A) Fabric 
B) Lumber 
C) Glue 
D) Steel

Question 6

Testing ways to increase the strength of your product would be classified as which part of the value chain?

Accepted Answer

A) Design 
B) Distribution 
C) Production 
D) Research and development 
A) Design 
B) Distribution 
C) Production 
D) Research and development

Question 7

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

Accepted Answer

A) $40,000 
B) $43,000 
C) $219,000 
D) $171,000 
A) $40,000 
B) $43,000 
C) $219,000 
D) $171,000

Question 8

Tall Timbers reports the following data for its first year of operation.   What are the total manufacturing costs?

Accepted Answer

A) $47,000 
B) $135,000 
C) $85,000 
D) $117,000 
A) $47,000 
B) $135,000 
C) $85,000 
D) $117,000

Question 9

A snow removal business would be classified as a

Accepted Answer

A) manufacturing company. 
B) merchandising company. 
C) simple company. 
D) service company. 
A) manufacturing company. 
B) merchandising company. 
C) simple company. 
D) service company.

Question 10

Merchandising companies include both wholesalers and retailers.

Accepted Answer

A) True 
 B)False

Question 11

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include:   Direct material costs for Country Furniture Company totaled

Accepted Answer

A) $82,000. 
B) $10,000. 
C) $95,000. 
D) $92,000. 
A) $82,000. 
B) $10,000. 
C) $95,000. 
D) $92,000.

Question 12

Costs can be either direct or indirect, depending upon the cost object.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following would not be included in the value chain?

Accepted Answer

A) Website development costs 
B) Costs to deliver product to retail outlets 
C) Costs of print advertisements 
D) All of these costs would be included as part of the value chain. 
A) Website development costs 
B) Costs to deliver product to retail outlets 
C) Costs of print advertisements 
D) All of these costs would be included as part of the value chain.

Question 14

Youngstown Rubber reports the following data for its first year of operation.   What are the total manufacturing costs?

Accepted Answer

A) $945,000 
B) $585,000 
C) $1,265,000 
D) $455,000 
A) $945,000 
B) $585,000 
C) $1,265,000 
D) $455,000

Question 15

Inventoriable product costs for a manufactured product include

Accepted Answer

A) the costs of direct materials, direct labor and manufacturing overhead. 
B) marketing and research and development costs. 
C) the costs of direct materials and direct labor only. 
D) none of the above. 
A) the costs of direct materials, direct labor and manufacturing overhead. 
B) marketing and research and development costs. 
C) the costs of direct materials and direct labor only. 
D) none of the above.

Question 16

How do fixed costs per unit behave?

Accepted Answer

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

Question 17

How are average cost and marginal cost computed?

Accepted Answer

The average cost is the total

Question 18

Sneider Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July:   What is the total cost for the research and development category of the value chain?

Accepted Answer

A) $75,000 
B) $78,000 
C) $63,000 
D) $197,000 
A) $75,000 
B) $78,000 
C) $63,000 
D) $197,000

Question 19

Irrelevant factors should not be considered when making decisions.

Accepted Answer

A) True 
 B)False

Question 20

Conversion costs consist of

Accepted Answer

A) direct materials and direct labor. 
B) direct labor and manufacturing overhead. 
C) direct materials and manufacturing overhead. 
D) direct materials, direct labor and manufacturing overhead. 
A) direct materials and direct labor. 
B) direct labor and manufacturing overhead. 
C) direct materials and manufacturing overhead. 
D) direct materials, direct labor and manufacturing overhead.

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

A marginal cost is the cost of making one more unit of a product.

In addition to cost of goods manufactured, which of the following is needed to compute the cost of goods sold for a manufacturer?

Page's sells books. The following information summarizes the company's operating expenses for the year: What is gross profit?

Which of the following would not be considered a direct material for a mattress?

Testing ways to increase the strength of your product would be classified as which part of the value chain?

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

Tall Timbers reports the following data for its first year of operation. What are the total manufacturing costs?

A snow removal business would be classified as a

Merchandising companies include both wholesalers and retailers.

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Direct material costs for Country Furniture Company totaled

Costs can be either direct or indirect, depending upon the cost object.

Which of the following would not be included in the value chain?

Youngstown Rubber reports the following data for its first year of operation. What are the total manufacturing costs?

Inventoriable product costs for a manufactured product include

How do fixed costs per unit behave?

How are average cost and marginal cost computed?

Sneider Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July: What is the total cost for the research and development category of the value chain?

Irrelevant factors should not be considered when making decisions.

Conversion costs consist of

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

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

A marginal cost is the cost of making one more unit of a product.

In addition to cost of goods manufactured, which of the following is needed to compute the cost of goods sold for a manufacturer?

Page's sells books. The following information summarizes the company's operating expenses for the year: What is gross profit?

Which of the following would not be considered a direct material for a mattress?

Testing ways to increase the strength of your product would be classified as which part of the value chain?

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

Tall Timbers reports the following data for its first year of operation. What are the total manufacturing costs?

A snow removal business would be classified as a

Merchandising companies include both wholesalers and retailers.

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Direct material costs for Country Furniture Company totaled

Costs can be either direct or indirect, depending upon the cost object.

Which of the following would not be included in the value chain?

Youngstown Rubber reports the following data for its first year of operation. What are the total manufacturing costs?

Inventoriable product costs for a manufactured product include

How do fixed costs per unit behave?

How are average cost and marginal cost computed?

Sneider Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July: What is the total cost for the research and development category of the value chain?

Irrelevant factors should not be considered when making decisions.

Conversion costs consist of

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