Question 1

The cost of goods sold for the year (in thousands of dollars)was:

Accepted Answer

A)  $500. 
B)  $580. 
C)  $660. 
D)  $700. 
A)  $500. 
B)  $580. 
C)  $660. 
D)  $700.

Question 2

The conversion cost was:

Accepted Answer

A)  $500. 
B)  $700. 
C)  $800. 
D)  $900. 
A)  $500. 
B)  $700. 
C)  $800. 
D)  $900.

Question 3

Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands ($000)of dollars):

Accepted Answer

@#IMG-DLM& 
Direct materials used = 6,000 + 7,000

Question 4

Which of the following major activities of a business will result in product costs?

Accepted Answer

A)  Marketing. 
B)  Customer support. 
C)  General administrative. 
D)  Manufacturing. 
A)  Marketing. 
B)  Customer support. 
C)  General administrative. 
D)  Manufacturing.

Question 5

Variable cost:

Accepted Answer

A)  increases on a per unit basis as the number of units produced increases. 
B)  remains constant on a per unit basis as the number of units produced increases. 
C)  remains the same in total as production increases. 
D)  decreases on a per unit basis as the number of units produced increases. 
A)  increases on a per unit basis as the number of units produced increases. 
B)  remains constant on a per unit basis as the number of units produced increases. 
C)  remains the same in total as production increases. 
D)  decreases on a per unit basis as the number of units produced increases.

Question 6

When a decision is made among a number of alternatives,the potential benefit that is lost by choosing one alternative over another is the:

Accepted Answer

A)  realized cost. 
B)  opportunity cost. 
C)  conversion cost. 
D)  accrued cost. 
A)  realized cost. 
B)  opportunity cost. 
C)  conversion cost. 
D)  accrued cost.

Question 7

Which of the following would NOT be treated as a product cost for external financial reporting purposes?

Accepted Answer

A)  Depreciation on a factory building. 
B)  Salaries of factory workers. 
C)  Indirect labour in the factory. 
D)  Advertising expenses. 
A)  Depreciation on a factory building. 
B)  Salaries of factory workers. 
C)  Indirect labour in the factory. 
D)  Advertising expenses.

Question 8

Sunk costs are irrelevant in making decisions.

Accepted Answer

A) True 
 B)False

Question 9

The net income for the year (in thousands of dollars)was:

Accepted Answer

A)  $18. 
B)  $40. 
C)  $110. 
D)  $410. 
A)  $18. 
B)  $40. 
C)  $110. 
D)  $410.

Question 10

The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000.If the ending inventory of finished goods was $30,000,the beginning inventory of finished goods must have been:

Accepted Answer

A)  $20,000. 
B)  $50,000. 
C)  $110,000. 
D)  $150,000. 
A)  $20,000. 
B)  $50,000. 
C)  $110,000. 
D)  $150,000.

Question 11

Using the following data for January,calculate the cost of goods manufactured:   The cost of goods manufactured was:

Accepted Answer

A)  $78,000. 
B)  $79,000. 
C)  $80,000. 
D)  $89,000. 
A)  $78,000. 
B)  $79,000. 
C)  $80,000. 
D)  $89,000.

Question 12

The beginning work in process inventory was:

Accepted Answer

A)  $1,000. 
B)  $4,000. 
C)  $10,000. 
D)  $14,000. 
A)  $1,000. 
B)  $4,000. 
C)  $10,000. 
D)  $14,000.

Question 13

Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?

Accepted Answer

A)  The cost of the hard disk drive installed in the computer. 
B)  The cost of shipping the computer to the customer. 
C)  The cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers. 
D)  The cost of packaging the computer for shipment. 
A)  The cost of the hard disk drive installed in the computer. 
B)  The cost of shipping the computer to the customer. 
C)  The cost of leasing a machine on a monthly basis that automatically tests hard disk drives before they are installed in computers. 
D)  The cost of packaging the computer for shipment.

Question 14

An opportunity cost is:

Accepted Answer

A)  the difference in total costs which results from selecting one alternative instead of another. 
B)  the potential benefit forgone by selecting one alternative instead of another. 
C)  a cost which may be saved by not adopting an alternative. 
D)  a cost which may be shifted to the future with little or no effect on current operations. 
A)  the difference in total costs which results from selecting one alternative instead of another. 
B)  the potential benefit forgone by selecting one alternative instead of another. 
C)  a cost which may be saved by not adopting an alternative. 
D)  a cost which may be shifted to the future with little or no effect on current operations.

Question 15

The cost of goods manufactured for the year (in thousands of dollars)was:

Accepted Answer

A)  $500. 
B)  $540. 
C)  $570. 
D)  $590. 
A)  $500. 
B)  $540. 
C)  $570. 
D)  $590.

Question 16

The following information was provided by Jimbob Co.for the year just ended:   What was beginning finished goods inventory?

Accepted Answer

A)  $100,000. 
B)  $200,000. 
C)  $300,000. 
D)  $400,000. 
A)  $100,000. 
B)  $200,000. 
C)  $300,000. 
D)  $400,000.

Question 17

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

Accepted Answer

A)  Product cost. 
B)  Manufacturing overhead. 
C)  Period cost. 
D)  Administrative cost. 
A)  Product cost. 
B)  Manufacturing overhead. 
C)  Period cost. 
D)  Administrative cost.

Question 18

Within the relevant range,the difference between variable costs and fixed costs is:

Accepted Answer

A)  variable costs per unit fluctuate and fixed costs per unit remain constant. 
B)  variable costs per unit are constant and fixed costs per unit fluctuate. 
C)  both total variable costs and total fixed costs are constant. 
D)  both total variable costs and total fixed costs fluctuate. 
A)  variable costs per unit fluctuate and fixed costs per unit remain constant. 
B)  variable costs per unit are constant and fixed costs per unit fluctuate. 
C)  both total variable costs and total fixed costs are constant. 
D)  both total variable costs and total fixed costs fluctuate.

Question 19

The following account balances has been extracted from Jimbob Co.'s general ledger:   What was the total of manufacturing costs?

Accepted Answer

A)  $400,000. 
B)  $510,000. 
C)  $560,000. 
D)  $740,000. 
A)  $400,000. 
B)  $510,000. 
C)  $560,000. 
D)  $740,000.

Question 20

If raw materials costing $35,000 were purchased during January,the total manufacturing costs for the month was?

Accepted Answer

A)  $144,000. 
B)  $145,000. 
C)  $146,000. 
D)  $151,000. 
A)  $144,000. 
B)  $145,000. 
C)  $146,000. 
D)  $151,000.

The cost of goods sold for the year (in thousands of dollars)was:

The conversion cost was:

Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands ($000)of dollars):

Which of the following major activities of a business will result in product costs?

Variable cost:

When a decision is made among a number of alternatives,the potential benefit that is lost by choosing one alternative over another is the:

Which of the following would NOT be treated as a product cost for external financial reporting purposes?

Sunk costs are irrelevant in making decisions.

The net income for the year (in thousands of dollars)was:

The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000.If the ending inventory of finished goods was $30,000,the beginning inventory of finished goods must have been:

Using the following data for January,calculate the cost of goods manufactured: The cost of goods manufactured was:

The beginning work in process inventory was:

Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?

An opportunity cost is:

The cost of goods manufactured for the year (in thousands of dollars)was:

The following information was provided by Jimbob Co.for the year just ended: What was beginning finished goods inventory?

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

Within the relevant range,the difference between variable costs and fixed costs is:

The following account balances has been extracted from Jimbob Co.'s general ledger: What was the total of manufacturing costs?

If raw materials costing $35,000 were purchased during January,the total manufacturing costs for the month was?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

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Exam 2: Systems Design: Job-Order Costing

The cost of goods sold for the year (in thousands of dollars)was:

The conversion cost was:

Use the following information to determine the gross margin for Pacific States Manufacturing for the year just ended (all amounts are in thousands ($000)of dollars):

Which of the following major activities of a business will result in product costs?

Variable cost:

When a decision is made among a number of alternatives,the potential benefit that is lost by choosing one alternative over another is the:

Which of the following would NOT be treated as a product cost for external financial reporting purposes?

Sunk costs are irrelevant in making decisions.

The net income for the year (in thousands of dollars)was:

The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000.If the ending inventory of finished goods was $30,000,the beginning inventory of finished goods must have been:

Using the following data for January,calculate the cost of goods manufactured: The cost of goods manufactured was:

The beginning work in process inventory was:

Which one of the following costs should NOT be considered a direct cost of serving a particular customer who orders a customized personal computer by phone directly from the manufacturer?

An opportunity cost is:

The cost of goods manufactured for the year (in thousands of dollars)was:

The following information was provided by Jimbob Co.for the year just ended: What was beginning finished goods inventory?

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

Within the relevant range,the difference between variable costs and fixed costs is:

The following account balances has been extracted from Jimbob Co.'s general ledger: What was the total of manufacturing costs?

If raw materials costing $35,000 were purchased during January,the total manufacturing costs for the month was?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Activity-Based Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters