Exam 2: Basic Managerial Accounting Concepts

An opportunity cost is the benefit given up or sacrificed when one alternative is chosen over another.

Select the appropriate definition for each of the items listed below. -Direct materials + direct labor + overhead

Select the appropriate classification of the output generated by each of the following industries. -Law firm

Select the appropriate item for each of the definitions listed below. -sales revenue - cost of goods sold

For external reporting purposes, costs must be classified into only three categories.

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -general accounting costs

Product costs include direct materials, direct labor, and selling costs.

Figure 2-3.Bartlow, Inc. had the following income statement for the month of May. -Refer to Figure 2-3. What was the sales revenue percent?

Rancor Inc. had a per-unit conversion cost of $2.50 during April and incurred direct materials cost of $100,000, direct labor costs of $75,000, and overhead costs of $45,000 during the month. How many units did they manufacture during the month?

Macon Company supplied the following data and information on inventories at the end of the current year. Direct labor \ 0,000 Selling expenses 31,000 Sales revenue 400,000 Administrative expenses 14,500 Purchases of raw materials 62,000 Factory supervision 50,000 Factory supplies used 25,000 Required: Prepare an income statement of Macon Company for the current year.

Select the appropriate definition of each of the items listed below. -Covers a particular period of time

Indirect costs are costs that are not easily and accurately traced to a cost object.

What is the difference between a period cost and a product cost?

Select the appropriate definition of each of the items listed below. -Cost of partially completed goods

Cost of goods sold is the total product cost of the units sold during a period.

Employees who convert direct materials into a product are classified as _____________.

Rizzuto Company supplied the following information for the month of January. Required: Reconstruct Rizzuto's income statement for January assuming that their total sales revenue for the month equaled $500,000.

List and describe the three categories of manufacturing costs.

Select the appropriate definition for each of the items listed below. -A cost that stays the same in total regardless of changes in output

Select the appropriate definition of each of the items listed below. -The difference between sales revenue and cost of goods sold