Exam 2: Building Blocks of Managerial Accounting

Variable costs

Compute the missing amounts.

You are trying to decide whether or not to sell back your accounting textbook at the end of the class. The cost you paid for the book is not relevant to your decision.

All of the following would be considered a direct material for a kitchen cabinet except

Differential cost is the difference in cost between two alternatives.

Which of the following represents a sunk cost?

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars. All of the following costs would be relevant to its decision except

Explain the difference between raw materials inventory, work in process inventory, and finished goods inventory.

Before these materials are used to manufacture cabinets, a woodworker classifies lumber, paint, and glue as

The cost of lighting the factory would be classified as ________ when determining the cost of a manufactured product.

A company is deciding whether to purchase production equipment which can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision?

Which part of the value chain would depreciation on a factory be classified as?

Direct materials for a company were $500,000; manufacturing overhead was $250,000; and direct labor was $770,000. Conversion costs would total

Manufacturing companies usually have three types of inventory.

The total cost of a product equals the total fixed costs plus the total variable costs.

Which type of company has three types of inventory?

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

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

All of the following are period costs except