Exam 2: Basic Managerial Accounting Concepts

Select the appropriate classification for each of the following costs. -Marketing costs

Gross margin is the difference between sales revenue and cost of goods sold.

You are the accounting manager at Falcon Inc. You just hired a new staff accountant to assist you in breaking out costs into their appropriate classifications. The staff accountant asks you why cost classification is important. How would you respond?

Select the appropriate classification for each of the items listed below. -Rental cost of executive Lear jet

Select the appropriate classification of the items listed below. -Salary of chief executive officer

Which of the following would not be included in overhead?

Select the appropriate classification of the output generated by each of the following industries. -Car manufacturer