Question 1

Decision making is guided only by differential costs.

Accepted Answer

A) True 
 B)False

Question 2

The income statement of a retailer would include which of the following?

Accepted Answer

A) Cost of goods sold 
B) Value of inventory 
C) Accounts payable 
D) Accounts receivable 
A) Cost of goods sold 
B) Value of inventory 
C) Accounts payable 
D) Accounts receivable

Question 3

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

Accepted Answer

A) $92,000. 
B) $247,500. 
C) $250,500. 
D) $368,500. 
A) $92,000. 
B) $247,500. 
C) $250,500. 
D) $368,500.

Question 4

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

Accepted Answer

A) Plant supervisor salary 
B) Machinery depreciation in the factory 
C) Plant utilities 
D) Cost of the automobile engines 
A) Plant supervisor salary 
B) Machinery depreciation in the factory 
C) Plant utilities 
D) Cost of the automobile engines

Question 5

When do inventoriable costs become expenses?

Accepted Answer

A) When direct materials are purchased 
B) When the manufacturing process begins 
C) When the manufacturing process is completed 
D) None of the above 
A) When direct materials are purchased 
B) When the manufacturing process begins 
C) When the manufacturing process is completed 
D) None of the above

Question 6

Page's sells books. The following information summarizes the company's operating expenses for the year:   What is cost of goods available for sale?

Accepted Answer

A) $116,000 
B) $65,000 
C) $119,000 
D) $108,000 
A) $116,000 
B) $65,000 
C) $119,000 
D) $108,000

Question 7

All of the following are part of a company's value chain except

Accepted Answer

A) design. 
B) distribution. 
C) administration. 
D) marketing. 
A) design. 
B) distribution. 
C) administration. 
D) marketing.

Question 8

A company produces toy airplanes at a variable cost of $23 per toy. If 7,000 toys are produced at a total variable cost of $161,000, the total variable cost at 4,500 toys will be

Accepted Answer

A) $161,000. 
B) $23. 
C) $103,500. 
D) $264,500. 
A) $161,000. 
B) $23. 
C) $103,500. 
D) $264,500.

Question 9

Over the long-term all costs are uncontrollable.

Accepted Answer

A) True 
 B)False

Question 10

Direct labor for a company was $145,000; manufacturing overhead was $300,000; and direct materials were $270,000. Prime costs would total

Accepted Answer

A) $715,000. 
B) $445,000. 
C) $415,000. 
D) $570,000. 
A) $715,000. 
B) $445,000. 
C) $415,000. 
D) $570,000.

Question 11

The sales price of a particular unit is $19.00. The company plans to sell 7,500 units. The variable costs are $6.00 per unit and monthly fixed costs are $112,500. Given this information what is the average fixed cost per unit?

Accepted Answer

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

Question 12

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 13

Winner's Sporting Equipment manufactures sporting goods. Selected costs from the past year include:   Period costs for Winner's Sporting Equipment totaled

Accepted Answer

A) $91,000. 
B) $37,000. 
C) $188,000. 
D) $111,000. 
A) $91,000. 
B) $37,000. 
C) $188,000. 
D) $111,000.

Question 14

The costs incurred to get merchandise to a company's retail store would be considered to be what part of the value chain?

Accepted Answer

A) Marketing 
B) Customer service 
C) Production or purchases 
D) Research and development 
A) Marketing 
B) Customer service 
C) Production or purchases 
D) Research and development

Question 15

Which of the following is an example of an inventoriable cost when manufacturing products?

Accepted Answer

A) Depreciation on office equipment 
B) Depreciation on store building 
C) Sales salaries expenses 
D) Depreciation on factory equipment 
A) Depreciation on office equipment 
B) Depreciation on store building 
C) Sales salaries expenses 
D) Depreciation on factory equipment

Question 16

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

Accepted Answer

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

Question 17

Which of the following statements is correct concerning product costs?

Accepted Answer

A) Product costs are expensed in the period the related product is sold. 
B) Product costs are expensed in the period incurred. 
C) Product costs are shown with operating expenses on the income statement. 
D) Product costs are shown with current liabilities on the balance sheet. 
A) Product costs are expensed in the period the related product is sold. 
B) Product costs are expensed in the period incurred. 
C) Product costs are shown with operating expenses on the income statement. 
D) Product costs are shown with current liabilities on the balance sheet.

Question 18

Enter the letter of the type of company on the line in front of each statement. Letters may be used more than once or not at all.
A)service company
B)merchandising company
C)manufacturing company
____ generally has no inventory
____ has three types of inventory
____ inventory consists of freight-in and the cost of the product
____ has the highest percentage of labor costs
____ Wal-Mart is this type of company

Accepted Answer

The answer of Enter the letter of the type of...

Question 19

Which of the following is an example of overhead in a factory?

Accepted Answer

A) Wages of machine operators 
B) Wages of administrators in the corporate office 
C) Wages of factory maintenance personnel 
D) Salaries of salespersons 
A) Wages of machine operators 
B) Wages of administrators in the corporate office 
C) Wages of factory maintenance personnel 
D) Salaries of salespersons

Question 20

Toshiba Corporation makes computer chips. Toshiba Corporation would be classified as a

Accepted Answer

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

Decision making is guided only by differential costs.

The income statement of a retailer would include which of the following?

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

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

When do inventoriable costs become expenses?

Page's sells books. The following information summarizes the company's operating expenses for the year: What is cost of goods available for sale?

All of the following are part of a company's value chain except

A company produces toy airplanes at a variable cost of $23 per toy. If 7,000 toys are produced at a total variable cost of $161,000, the total variable cost at 4,500 toys will be

Over the long-term all costs are uncontrollable.

Direct labor for a company was $145,000; manufacturing overhead was $300,000; and direct materials were $270,000. Prime costs would total

The sales price of a particular unit is $19.00. The company plans to sell 7,500 units. The variable costs are $6.00 per unit and monthly fixed costs are $112,500. Given this information what is the average fixed cost per unit?

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company.

Winner's Sporting Equipment manufactures sporting goods. Selected costs from the past year include: Period costs for Winner's Sporting Equipment totaled

The costs incurred to get merchandise to a company's retail store would be considered to be what part of the value chain?

Which of the following is an example of an inventoriable cost when manufacturing products?

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

Which of the following statements is correct concerning product costs?

Which of the following is an example of overhead in a factory?

Toshiba Corporation makes computer chips. Toshiba Corporation would be classified as a

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

Decision making is guided only by differential costs.

The income statement of a retailer would include which of the following?

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

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

When do inventoriable costs become expenses?

Page's sells books. The following information summarizes the company's operating expenses for the year: What is cost of goods available for sale?

All of the following are part of a company's value chain except

A company produces toy airplanes at a variable cost of $23 per toy. If 7,000 toys are produced at a total variable cost of $161,000, the total variable cost at 4,500 toys will be

Over the long-term all costs are uncontrollable.

Direct labor for a company was $145,000; manufacturing overhead was $300,000; and direct materials were $270,000. Prime costs would total

The sales price of a particular unit is $19.00. The company plans to sell 7,500 units. The variable costs are $6.00 per unit and monthly fixed costs are $112,500. Given this information what is the average fixed cost per unit?

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company.

Winner's Sporting Equipment manufactures sporting goods. Selected costs from the past year include: Period costs for Winner's Sporting Equipment totaled

The costs incurred to get merchandise to a company's retail store would be considered to be what part of the value chain?

Which of the following is an example of an inventoriable cost when manufacturing products?

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

Which of the following statements is correct concerning product costs?

Which of the following is an example of overhead in a factory?

Toshiba Corporation makes computer chips. Toshiba Corporation would be classified as a

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