Question 1

When manufacturing products, direct labor and direct materials are classified as

Accepted Answer

A) period costs and expensed when incurred. 
B) product costs and expensed when the goods are sold. 
C) product costs and expensed when incurred. 
D) period costs and expensed when the goods are sold. 
A) period costs and expensed when incurred. 
B) product costs and expensed when the goods are sold. 
C) product costs and expensed when incurred. 
D) period costs and expensed when the goods are sold.

Question 2

The value chain is used by

Accepted Answer

A) service, manufacturing and merchandising businesses. 
B) only service and manufacturing businesses. 
C) only service and merchandising businesses. 
D) only manufacturing and merchandising businesses. 
A) service, manufacturing and merchandising businesses. 
B) only service and manufacturing businesses. 
C) only service and merchandising businesses. 
D) only manufacturing and merchandising businesses.

Question 3

Which of the following types of companies has raw materials, work in process and finished goods inventory?

Accepted Answer

A) Retailers 
B) Manufacturers 
C) Wholesalers 
D) Service companies 
A) Retailers 
B) Manufacturers 
C) Wholesalers 
D) Service companies

Question 4

Kitch Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year:
   Required: Prepare an income statement for the most recent year.

Accepted Answer

The answer of Kitch Company sells collectibles. The following information...

Question 5

Differentiate between fixed and variable costs and give an example of each.

Accepted Answer

Fixed costs stay constant in total over

Question 6

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

Accepted Answer

A) $41,000. 
B) $129,000. 
C) $44,500. 
D) $67,500. 
A) $41,000. 
B) $129,000. 
C) $44,500. 
D) $67,500.

Question 7

An example of direct labor would be which of the following?

Accepted Answer

A) Salary of a production manager 
B) Salary of the vice-president of operations 
C) Wages of factory security 
D) Wages of assembly line personnel 
A) Salary of a production manager 
B) Salary of the vice-president of operations 
C) Wages of factory security 
D) Wages of assembly line personnel

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 marketing category of the value chain?

Accepted Answer

A) $272,000 
B) $34,000 
C) $152,000 
D) $197,000 
A) $272,000 
B) $34,000 
C) $152,000 
D) $197,000

Question 9

Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows. Beginning merchandise inventory on January 1 was $33,000.
Ending merchandise inventory on December 31 was $35,000.
Purchases during the year were $92,000.
Selling and administrative expenses were $75,000.
Sales for year were $262,000.
What was gross profit?

Accepted Answer

A) $(165,000) 
B) $170,000 
C) $187,000 
D) $172,000 
A) $(165,000) 
B) $170,000 
C) $187,000 
D) $172,000

Question 10

How would Chevrolet classify its partially completed vehicles?

Accepted Answer

A) Finished goods 
B) Raw materials 
C) Work in process 
D) Supplies 
A) Finished goods 
B) Raw materials 
C) Work in process 
D) Supplies

Question 11

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

Accepted Answer

A) $415,500. 
B) $250,500. 
C) $504,500. 
D) $352,500. 
A) $415,500. 
B) $250,500. 
C) $504,500. 
D) $352,500.

Question 12

Indirect manufacturing costs should be included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 13

Retailers sell their products to consumers.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) Depreciation expense on factory equipment 
B) Advertising expense 
C) Indirect materials used in the factory 
D) Property taxes on the plant 
A) Depreciation expense on factory equipment 
B) Advertising expense 
C) Indirect materials used in the factory 
D) Property taxes on the plant

Question 15

Chicago Steel's operating activities for the year are listed below.   What is the cost of goods sold for the year?

Accepted Answer

A) $1,400,000 
B) $750,000 
C) $50,000 
D) $1,750,000 
A) $1,400,000 
B) $750,000 
C) $50,000 
D) $1,750,000

Question 16

All of the following activities are included in the value chain except

Accepted Answer

A) customer service. 
B) design. 
C) safety. 
D) production. 
A) customer service. 
B) design. 
C) safety. 
D) production.

Question 17

Costs that remain the same among alternatives are

Accepted Answer

A) sunk costs. 
B) irrelevant costs. 
C) controllable costs. 
D) uncontrollable costs. 
A) sunk costs. 
B) irrelevant costs. 
C) controllable costs. 
D) uncontrollable costs.

Question 18

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

Accepted Answer

A) $68,000 
B) $12,000 
C) $20,000 
D) $75,000 
A) $68,000 
B) $12,000 
C) $20,000 
D) $75,000

Question 19

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 total sales revenue will be

Accepted Answer

A) $154,000. 
B) $210,000. 
C) $84,000. 
D) $70,000. 
A) $154,000. 
B) $210,000. 
C) $84,000. 
D) $70,000.

Question 20

Tall Timbers reports the following data for its first year of operation.   What is the cost of goods sold?

Accepted Answer

A) $65,000 
B) $85,000 
C) $117,000 
D) $115,000 
A) $65,000 
B) $85,000 
C) $117,000 
D) $115,000

When manufacturing products, direct labor and direct materials are classified as

The value chain is used by

Which of the following types of companies has raw materials, work in process and finished goods inventory?

Kitch Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year: Required: Prepare an income statement for the most recent year.

Differentiate between fixed and variable costs and give an example of each.

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

An example of direct labor would be which of the following?

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 marketing category of the value chain?

How would Chevrolet classify its partially completed vehicles?

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

Indirect manufacturing costs should be included in manufacturing overhead.

Retailers sell their products to consumers.

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

Chicago Steel's operating activities for the year are listed below. What is the cost of goods sold for the year?

All of the following activities are included in the value chain except

Costs that remain the same among alternatives are

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

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 total sales revenue will be

Tall Timbers reports the following data for its first year of operation. What is the cost of goods sold?

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

When manufacturing products, direct labor and direct materials are classified as

The value chain is used by

Which of the following types of companies has raw materials, work in process and finished goods inventory?

Kitch Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year: Required: Prepare an income statement for the most recent year.

Differentiate between fixed and variable costs and give an example of each.

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

An example of direct labor would be which of the following?

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 marketing category of the value chain?

How would Chevrolet classify its partially completed vehicles?

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

Indirect manufacturing costs should be included in manufacturing overhead.

Retailers sell their products to consumers.

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

Chicago Steel's operating activities for the year are listed below. What is the cost of goods sold for the year?

All of the following activities are included in the value chain except

Costs that remain the same among alternatives are

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

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 total sales revenue will be

Tall Timbers reports the following data for its first year of operation. What is the cost of goods sold?

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