Question 1

An inventoriable cost could be the cost of the marketing and distribution of a product.

Accepted Answer

A) True 
 B)False

Question 2

Indirect costs cannot be traced to the cost objects, so they are allocated.

Accepted Answer

A) True 
 B)False

Question 3

To forecast total costs at a given level of production, management would use which of the following calculations?

Accepted Answer

A) Average cost × total units predicted 
B) Total fixed cost × total units predicted 
C) Total fixed cost + (variable cost per unit × total units predicted) 
D) Total fixed cost + variable cost per unit 
A) Average cost × total units predicted 
B) Total fixed cost × total units predicted 
C) Total fixed cost + (variable cost per unit × total units predicted) 
D) Total fixed cost + variable cost per unit

Question 4

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

Accepted Answer

A) $130,000. 
B) $260,000. 
C) $236,000. 
D) $330,500. 
A) $130,000. 
B) $260,000. 
C) $236,000. 
D) $330,500.

Question 5

What is the promotion of products and services known as?

Accepted Answer

A) Customer service 
B) Marketing 
C) Distribution 
D) Design 
A) Customer service 
B) Marketing 
C) Distribution 
D) Design

Question 6

Tuity Fruity Beverage Company's operating activities for the year are listed below.   What is the gross profit for the year?

Accepted Answer

A) $160,000 
B) $300,000 
C) $80,000 
D) $166,000 
A) $160,000 
B) $300,000 
C) $80,000 
D) $166,000

Question 7

A company has monthly fixed costs of $112,500. The variable costs are $6.00 per unit. If the sales price of a unit is $19.00 and we sell 7,500 units, the company's average fixed costs per unit will be

Accepted Answer

A) $13.00 per unit. 
B) $6.00 per unit. 
C) $21.00 per unit. 
D) $15.00 per unit. 
A) $13.00 per unit. 
B) $6.00 per unit. 
C) $21.00 per unit. 
D) $15.00 per unit.

Question 8

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 design category of the value chain?

Accepted Answer

A) $122,000 
B) $197,000 
C) $152,000 
D) $272,000 
A) $122,000 
B) $197,000 
C) $152,000 
D) $272,000

Question 9

A merchandiser's purchases are equivalent to a manufacturer's

Accepted Answer

A) cost of goods sold. 
B) cost of goods manufactured. 
C) raw materials inventory. 
D) work in process inventory. 
A) cost of goods sold. 
B) cost of goods manufactured. 
C) raw materials inventory. 
D) work in process inventory.

Question 10

Lucky Cow Dairy provided the following expense information for May:   What is the total cost of research and development?

Accepted Answer

A) $73,000 
B) $70,000 
C) $55,000 
D) $195,000 
A) $73,000 
B) $70,000 
C) $55,000 
D) $195,000

Question 11

Which of the following types of information differs between alternatives and can affect the future?

Accepted Answer

A) Historical 
B) Irrelevant 
C) Relevant 
D) Predictable 
A) Historical 
B) Irrelevant 
C) Relevant 
D) Predictable

Question 12

The activities in the value chain must take place in a specific order.

Accepted Answer

A) True 
 B)False

Question 13

Receipt of materials is part of the firm's value chain.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following are classified as manufacturing overhead?

Accepted Answer

A) Indirect labor and indirect materials 
B) Direct materials and direct labor 
C) All materials 
D) Factory rent and direct labor 
A) Indirect labor and indirect materials 
B) Direct materials and direct labor 
C) All materials 
D) Factory rent and direct labor

Question 15

Which of the following would not be considered a product cost for a manufacturer?

Accepted Answer

A) Direct labor 
B) Direct materials 
C) Manufacturing overhead 
D) Freight out 
A) Direct labor 
B) Direct materials 
C) Manufacturing overhead 
D) Freight out

Question 16

Lots of Stuff Company reports the following data for its first year of operation.   What is the cost of goods sold?

Accepted Answer

A) $365,000 
B) $455,000 
C) $750,000 
D) $505,000 
A) $365,000 
B) $455,000 
C) $750,000 
D) $505,000

Question 17

A company has monthly fixed costs of $112,500. The variable costs are $6.00 per unit. If the sales price of a unit is $19.00 and we sell 7,500 units, the company's total variable costs will be

Accepted Answer

A) $112,500. 
B) $45,000. 
C) $142,500. 
D) $97,500. 
A) $112,500. 
B) $45,000. 
C) $142,500. 
D) $97,500.

Question 18

The value chain concept helps companies control costs over the value chain as a whole.

Accepted Answer

A) True 
 B)False

Question 19

Company X sells widgets. The following information summarizes the company's operating activities for the year:   What is gross profit?

Accepted Answer

A) $15,500 
B) $21,000 
C) $17,000 
D) $12,500 
A) $15,500 
B) $21,000 
C) $17,000 
D) $12,500

Question 20

A company's distribution system is an important part of the value chain.

Accepted Answer

A) True 
 B)False

An inventoriable cost could be the cost of the marketing and distribution of a product.

Indirect costs cannot be traced to the cost objects, so they are allocated.

To forecast total costs at a given level of production, management would use which of the following calculations?

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

What is the promotion of products and services known as?

Tuity Fruity Beverage Company's operating activities for the year are listed below. What is the gross profit for the year?

A company has monthly fixed costs of $112,500. The variable costs are $6.00 per unit. If the sales price of a unit is $19.00 and we sell 7,500 units, the company's average fixed costs per unit will be

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 design category of the value chain?

A merchandiser's purchases are equivalent to a manufacturer's

Lucky Cow Dairy provided the following expense information for May: What is the total cost of research and development?

Which of the following types of information differs between alternatives and can affect the future?

The activities in the value chain must take place in a specific order.

Receipt of materials is part of the firm's value chain.

Which of the following are classified as manufacturing overhead?

Which of the following would not be considered a product cost for a manufacturer?

Lots of Stuff Company reports the following data for its first year of operation. What is the cost of goods sold?

A company has monthly fixed costs of $112,500. The variable costs are $6.00 per unit. If the sales price of a unit is $19.00 and we sell 7,500 units, the company's total variable costs will be

The value chain concept helps companies control costs over the value chain as a whole.

Company X sells widgets. The following information summarizes the company's operating activities for the year: What is gross profit?

A company's distribution system is an important part of the 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

An inventoriable cost could be the cost of the marketing and distribution of a product.

Indirect costs cannot be traced to the cost objects, so they are allocated.

To forecast total costs at a given level of production, management would use which of the following calculations?

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

What is the promotion of products and services known as?

Tuity Fruity Beverage Company's operating activities for the year are listed below. What is the gross profit for the year?

A company has monthly fixed costs of $112,500. The variable costs are $6.00 per unit. If the sales price of a unit is $19.00 and we sell 7,500 units, the company's average fixed costs per unit will be

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 design category of the value chain?

A merchandiser's purchases are equivalent to a manufacturer's

Lucky Cow Dairy provided the following expense information for May: What is the total cost of research and development?

Which of the following types of information differs between alternatives and can affect the future?

The activities in the value chain must take place in a specific order.

Receipt of materials is part of the firm's value chain.

Which of the following are classified as manufacturing overhead?

Which of the following would not be considered a product cost for a manufacturer?

Lots of Stuff Company reports the following data for its first year of operation. What is the cost of goods sold?

A company has monthly fixed costs of $112,500. The variable costs are $6.00 per unit. If the sales price of a unit is $19.00 and we sell 7,500 units, the company's total variable costs will be

The value chain concept helps companies control costs over the value chain as a whole.

Company X sells widgets. The following information summarizes the company's operating activities for the year: What is gross profit?

A company's distribution system is an important part of the 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