Question 1

Select the appropriate definition of each of the items listed below.
-The total cost of goods completed during the current period

Accepted Answer

A) Income Statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income 
A) Income Statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income

Question 2

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

Accepted Answer

A) Period 
B) Product 
A) Period 
B) Product

Question 3

Rancor Company's accountant prepared the following income statement for the month of August.
  Required:

Accepted Answer

The answer of Rancor Company's accountant prepared the following income...

Question 4

Production costs that are not attached to units that are sold are reported as:

Accepted Answer

A)  selling expenses. 
B)  cost of goods sold. 
C)  administrative costs. 
D)  inventory. 
A)  selling expenses. 
B)  cost of goods sold. 
C)  administrative costs. 
D)  inventory.

Question 5

The ____________________________ represents that total product cost of goods completed during the current period and transferred to finished goods inventory.

Accepted Answer

cost of go

Question 6

A(n)_________________ is the benefit given up or sacrificed when one alternative is chosen over another.

Accepted Answer

The answer of A(n)_________________ is the benefit given up or...

Question 7

Stabler Company, a manufacturing firm, has provided the following information for the month of May:
  Required:

Accepted Answer

A.
 @#IMG-DLM& B. 92,100/10,000 = $9.21
C.
 @#IMG-DLM& D. Nu

Question 8

Select the appropriate definition for each of the items listed below.
-(direct materials + direct labor + overhead) +/- the change in work in process inventory from the beginning to the end of the current period

Accepted Answer

A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs 
A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs

Question 9

Select the appropriate definition for each of the items listed below.
-The cost of units finished but not sold at the end of the current period

Accepted Answer

A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs 
A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs

Question 10

Price is not:

Accepted Answer

A)  the revenue per unit. 
B)  greater than cost in order for the firm to earn income. 
C)  the same as cost. 
D)  the same as cost per unit plus the income per unit. 
A)  the revenue per unit. 
B)  greater than cost in order for the firm to earn income. 
C)  the same as cost. 
D)  the same as cost per unit plus the income per unit.

Question 11

Picture It Inc. manufactures customized wooden frames. The direct materials needed to construct the frames are wood, glass and cardboard. Picture It has 22 employees who work a 40 hour work week and are each paid $17 per hour. The company produced and sold 900 frames in the month of September.
During the month of September the following purchases were made to produce the 900 frames:
Wood- 4000 ft. at $1.20/ft.
Glass- 400 pieces at $5.60/piece
Cardboard- 500 pieces at $.50/piece
Required:
1. Calculate the total product cost for the month. Assume that all employees worked four full weeks in September and that the company incurred $55,000 in overhead costs.
2. Calculate the per unit cost.
3. Calculate the gross margin for the month of September assuming that the company sells each frame for $250.

Accepted Answer

1. Direct materials:
 @#IMG-DLM& Direct labor: 59,

Question 12

Which of the following would not be found on an income statement of a service organization?

Accepted Answer

A)  selling expenses 
B)  cost of goods sold 
C)  operating income 
D)  sales revenue 
A)  selling expenses 
B)  cost of goods sold 
C)  operating income 
D)  sales revenue

Question 13

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
-depreciation of vehicles used by sales personnel

Accepted Answer

A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense 
A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense

Question 14

Select the appropriate classification of the output generated by each of the following industries.
-Fast food restaurant

Accepted Answer

A) Tangible 
B) Intangible 
A) Tangible 
B) Intangible

Question 15

A(n) ________________ is a cost that does not increase in total as output increase and does not decrease in total as output decreases.

Accepted Answer

The answer of A(n) ________________ is a cost that does...

Question 16

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
-cost of tires

Accepted Answer

A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense 
A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense

Question 17

Figure 2-8.Last year Quest Company incurred the following costs:
   Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero.
-Refer to Figure 2-8. Total period expense was?

Accepted Answer

A)  $24,000 
B)  $190,000 
C)  $46,000 
D)  $250,000 
A)  $24,000 
B)  $190,000 
C)  $46,000 
D)  $250,000

Question 18

Costs are directly, not indirectly, associated with cost objects.

Accepted Answer

A) True 
 B)False

Question 19

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles.
-factory supplies

Accepted Answer

A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense 
A) direct materials 
B) direct labor 
C) overhead 
D) selling expense 
E) administrative expense

Question 20

Which of the following is not an example of a direct materials cost?

Accepted Answer

A)  shelves on a bookcase 
B)  engine in a car 
C)  tires on a bicycle 
D)  nail used to manufacture a desk 
A)  shelves on a bookcase 
B)  engine in a car 
C)  tires on a bicycle 
D)  nail used to manufacture a desk

Select the appropriate definition of each of the items listed below. -The total cost of goods completed during the current period

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

Rancor Company's accountant prepared the following income statement for the month of August. Required:

Production costs that are not attached to units that are sold are reported as:

The ____________________________ represents that total product cost of goods completed during the current period and transferred to finished goods inventory.

A(n)_________________ is the benefit given up or sacrificed when one alternative is chosen over another.

Stabler Company, a manufacturing firm, has provided the following information for the month of May: Required:

Select the appropriate definition for each of the items listed below. -(direct materials + direct labor + overhead) +/- the change in work in process inventory from the beginning to the end of the current period

Select the appropriate definition for each of the items listed below. -The cost of units finished but not sold at the end of the current period

Price is not:

Which of the following would not be found on an income statement of a service organization?

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -depreciation of vehicles used by sales personnel

Select the appropriate classification of the output generated by each of the following industries. -Fast food restaurant

A(n) ________________ is a cost that does not increase in total as output increase and does not decrease in total as output decreases.

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -cost of tires

Figure 2-8.Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. -Refer to Figure 2-8. Total period expense was?

Costs are directly, not indirectly, associated with cost objects.

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -factory supplies

Which of the following is not an example of a direct materials cost?

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Basic Managerial Accounting Concepts

Select the appropriate definition of each of the items listed below. -The total cost of goods completed during the current period

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

Rancor Company's accountant prepared the following income statement for the month of August. Required:

Production costs that are not attached to units that are sold are reported as:

The ____________________________ represents that total product cost of goods completed during the current period and transferred to finished goods inventory.

A(n)_________________ is the benefit given up or sacrificed when one alternative is chosen over another.

Stabler Company, a manufacturing firm, has provided the following information for the month of May: Required:

Select the appropriate definition for each of the items listed below. -(direct materials + direct labor + overhead) +/- the change in work in process inventory from the beginning to the end of the current period

Select the appropriate definition for each of the items listed below. -The cost of units finished but not sold at the end of the current period

Price is not:

Which of the following would not be found on an income statement of a service organization?

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -depreciation of vehicles used by sales personnel

Select the appropriate classification of the output generated by each of the following industries. -Fast food restaurant

A(n) ________________ is a cost that does not increase in total as output increase and does not decrease in total as output decreases.

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -cost of tires

Figure 2-8.Last year Quest Company incurred the following costs: Quest produced and sold 2,000 units at a sales price of $125 each. Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. -Refer to Figure 2-8. Total period expense was?

Costs are directly, not indirectly, associated with cost objects.

Select the appropriate classification for each of the costs incurred by a manufacturer of automobiles. -factory supplies

Which of the following is not an example of a direct materials cost?

Introduction to Managerial Accounting

Cost Behavior

Cost-Volume-Profit Analysis: a Managerial Planning Tool

Job-Order Costing

Process Costing

Activity-Based Costing and Management

Absorption and Variable Costing, and Inventory Management

Profit Planning

Standard Costing: a Managerial Control Tool

Flexible Budgets and Overhead Analysis

Performance Evaluation and Decentralization

Short-Run Decision Making: Relevant Costing

Capital Investment Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters