Question 1

Controlling costs across the entire value chain often requires a trade-off between the individual elements of the value chain.

Accepted Answer

A) True 
 B)False

Question 2

A factory janitor's wages would be classified as ________ when determining the cost of a manufactured product.

Accepted Answer

A) an indirect cost 
B) a direct cost 
C) a period cost 
D) none of the above 
A) an indirect cost 
B) a direct cost 
C) a period cost 
D) none of the above

Question 3

Match between columns
                        Premises: delivery expense
toll free line for customer orders
depreciation expense on equipment in factory
customer support hot line
assembly line workers' wages

Accepted Answer

The Answer of production or purchases and distribution and research is...

Question 4

What is the cost of making one more unit called?

Accepted Answer

A) Unit cost 
B) Marginal cost 
C) Variable cost 
D) None of the above 
A) Unit cost 
B) Marginal cost 
C) Variable cost 
D) None of the above

Question 5

The total cost of a cost object can only include the direct costs that are directly traced to that cost object.

Accepted Answer

A) True 
 B)False

Question 6

A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, fixed costs in total will

Accepted Answer

A) double. 
B) remain the same. 
C) be cut in half. 
D) be none of the above. 
A) double. 
B) remain the same. 
C) be cut in half. 
D) be none of the above.

Question 7

Differentiate between:
A. direct materials versus indirect materials
B. direct labor versus indirect labor

Accepted Answer

Student responses will vary but should i

Question 8

For a merchandising company, the costs of shipping inventory to the retail outlet is associated with which element of the value chain?

Accepted Answer

A) Design 
B) Distribution 
C) Production and Purchases 
D) Customer Service 
A) Design 
B) Distribution 
C) Production and Purchases 
D) Customer Service

Question 9

Delivery expenses are charged to which of the following areas?

Accepted Answer

A) Distribution 
B) Customer service 
C) Production or purchases 
D) Marketing 
A) Distribution 
B) Customer service 
C) Production or purchases 
D) Marketing

Question 10

What type of company resells products it purchases ready-made from suppliers?

Accepted Answer

A) Merchandiser 
B) Retailer 
C) Wholesaler 
D) All of the above 
A) Merchandiser 
B) Retailer 
C) Wholesaler 
D) All of the above

Question 11

The financial statements of a merchandiser are more complex than those of a manufacturer.

Accepted Answer

A) True 
 B)False

Question 12

Challenge Tennis & Recreation's operating activities for the year are listed below.   What is the cost of goods available for sale?

Accepted Answer

A) $164,000 
B) $201,000 
C) $97,000 
D) $174,000 
A) $164,000 
B) $201,000 
C) $97,000 
D) $174,000

Question 13

All of the following items would be found in raw materials inventory for a furniture manufacturer except

Accepted Answer

A) wood. 
B) fabric. 
C) steel framing. 
D) assembly worker wages. 
A) wood. 
B) fabric. 
C) steel framing. 
D) assembly worker wages.

Question 14

An example of a fixed cost for a manufacturer would be which of the following?

Accepted Answer

A) Sales commissions 
B) Salary of plant manager 
C) Direct materials 
D) Delivery costs 
A) Sales commissions 
B) Salary of plant manager 
C) Direct materials 
D) Delivery costs

Question 15

Prime 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.

Question 16

The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?

Accepted Answer

A) Customer service 
B) Marketing 
C) Research and development 
D) Design 
A) Customer service 
B) Marketing 
C) Research and development 
D) Design

Question 17

Selected financial information for Greek Food Producers is presented in the following table (000s omitted).   What was cost of goods manufactured?

Accepted Answer

A) $1,440 
B) $1,040 
C) $1,720 
D) $1,160 
A) $1,440 
B) $1,040 
C) $1,720 
D) $1,160

Question 18

Which of the following costs include all of the costs associated with production of a product?

Accepted Answer

A) Inventoriable 
B) Direct 
C) Mixed 
D) Overhead 
A) Inventoriable 
B) Direct 
C) Mixed 
D) Overhead

Question 19

For a ________, inventory consists of freight-in and the cost of the product which is to be resold.

Accepted Answer

A) service company 
B) manufacturing company 
C) merchandising company 
D) all of these companies 
A) service company 
B) manufacturing company 
C) merchandising company 
D) all of these companies

Question 20

All of the components of manufacturing-from research and development through customer service after the sale-are part of a firm's value chain.

Accepted Answer

A) True 
 B)False

Controlling costs across the entire value chain often requires a trade-off between the individual elements of the value chain.

A factory janitor's wages would be classified as ________ when determining the cost of a manufactured product.

What is the cost of making one more unit called?

The total cost of a cost object can only include the direct costs that are directly traced to that cost object.

A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, fixed costs in total will

Differentiate between: A. direct materials versus indirect materials B. direct labor versus indirect labor

For a merchandising company, the costs of shipping inventory to the retail outlet is associated with which element of the value chain?

Delivery expenses are charged to which of the following areas?

What type of company resells products it purchases ready-made from suppliers?

The financial statements of a merchandiser are more complex than those of a manufacturer.

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods available for sale?

All of the following items would be found in raw materials inventory for a furniture manufacturer except

An example of a fixed cost for a manufacturer would be which of the following?

Prime costs consist of

The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). What was cost of goods manufactured?

Which of the following costs include all of the costs associated with production of a product?

For a ________, inventory consists of freight-in and the cost of the product which is to be resold.

All of the components of manufacturing-from research and development through customer service after the sale-are part of a firm's value chain.

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

Controlling costs across the entire value chain often requires a trade-off between the individual elements of the value chain.

A factory janitor's wages would be classified as ________ when determining the cost of a manufactured product.

What is the cost of making one more unit called?

The total cost of a cost object can only include the direct costs that are directly traced to that cost object.

A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, fixed costs in total will

Differentiate between: A. direct materials versus indirect materials B. direct labor versus indirect labor

For a merchandising company, the costs of shipping inventory to the retail outlet is associated with which element of the value chain?

Delivery expenses are charged to which of the following areas?

What type of company resells products it purchases ready-made from suppliers?

The financial statements of a merchandiser are more complex than those of a manufacturer.

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods available for sale?

All of the following items would be found in raw materials inventory for a furniture manufacturer except

An example of a fixed cost for a manufacturer would be which of the following?

Prime costs consist of

The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). What was cost of goods manufactured?

Which of the following costs include all of the costs associated with production of a product?

For a ________, inventory consists of freight-in and the cost of the product which is to be resold.

All of the components of manufacturing-from research and development through customer service after the sale-are part of a firm's value chain.

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