Question 1

Research and development is needed to improve products and to design new products.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following is an example of an inventoriable cost when manufacturing products?

Accepted Answer

A) Depreciation on office equipment 
B) Depreciation on store building 
C) Sales salaries expenses 
D) Depreciation on factory equipment 
A) Depreciation on office equipment 
B) Depreciation on store building 
C) Sales salaries expenses 
D) Depreciation on factory equipment

Question 3

Selected information regarding a company's most recent quarter follows (all data in thousands).
 
What was the ending raw materials inventory?

Accepted Answer

A) $400 
B) $770 
C) $150 
D) $750 
A) $400 
B) $770 
C) $150 
D) $750

Question 4

Rustic Living Furniture Company manufactures furniture at its central Kentucky factory.Some of its costs from the past year include:
 
Prime costs for Rustic Living Furniture Company totaled

Accepted Answer

A) $126,000. 
B) $23,000. 
C) $123,000. 
D) $168,500. 
A) $126,000. 
B) $23,000. 
C) $123,000. 
D) $168,500.

Question 5

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

Accepted Answer

A) $130,000. 
B) $260,000. 
C) $236,000. 
D) $330,500. 
A) $130,000. 
B) $260,000. 
C) $236,000. 
D) $330,500.

Question 6

Indirect materials and indirect labor are ________ for a manufactured product.

Accepted Answer

A) overhead and period costs 
B) operating and period costs 
C) overhead and product costs 
D) operating and product costs 
A) overhead and period costs 
B) operating and period costs 
C) overhead and product costs 
D) operating and product costs

Question 7

A company has fixed costs of $60,000 per month.If sales double from 6,000 to 12,000 units during the month,fixed costs in total will

Accepted Answer

A) double. 
B) remain the same. 
C) be cut in half. 
D) be none of the above. 
A) double. 
B) remain the same. 
C) be cut in half. 
D) be none of the above.

Question 8

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the total sales revenue will be

Accepted Answer

A) $70,000. 
B) $84,000. 
C) $154,000. 
D) $180,000. 
A) $70,000. 
B) $84,000. 
C) $154,000. 
D) $180,000.

Question 9

Product costs and period costs receive similar treatment when presented in the financial statements.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) $1,020,000. 
B) $1,270,000. 
C) $1,520,000. 
D) $750,000. 
A) $1,020,000. 
B) $1,270,000. 
C) $1,520,000. 
D) $750,000.

Question 11

Pink Ribbon Shoppe,a clothing retailer,had the following total costs as grouped by value chain element:
 
What were the company's period costs?

Accepted Answer

A) $205,000 
B) $277,000 
C) $100,000 
D) $135,000 
A) $205,000 
B) $277,000 
C) $100,000 
D) $135,000

Question 12

Joe's Bottling Company provided the following expense information for July:
 
What is the total cost for the customer service category of the value chain?

Accepted Answer

A) $68,000 
B) $12,000 
C) $20,000 
D) $75,000 
A) $68,000 
B) $12,000 
C) $20,000 
D) $75,000

Question 13

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

Accepted Answer

A) Plant supervisor salary 
B) Machinery depreciation in the factory 
C) Plant utilities 
D) Cost of the automobile engines 
A) Plant supervisor salary 
B) Machinery depreciation in the factory 
C) Plant utilities 
D) Cost of the automobile engines

Question 14

Challenge Tennis & Recreation's operating activities for the year are listed below.
 
What is the cost of goods available for sale?

Accepted Answer

A) $164,000 
B) $201,000 
C) $97,000 
D) $174,000 
A) $164,000 
B) $201,000 
C) $97,000 
D) $174,000

Question 15

Compute the missing amounts.

Accepted Answer

(A)120,000 - 119,000 = 1,000
(B)115,000

Question 16

Manufacturing overhead costs for a product include

Accepted Answer

A) direct material. 
B) operating expenses. 
C) indirect manufacturing costs. 
D) prime costs. 
A) direct material. 
B) operating expenses. 
C) indirect manufacturing costs. 
D) prime costs.

Question 17

When deciding to buy a new computer,all of the following should be considered except for the

Accepted Answer

A) cost of the new computer. 
B) cost of the old computer. 
C) games that come with the new computer. 
D) warranty on the new computer. 
A) cost of the new computer. 
B) cost of the old computer. 
C) games that come with the new computer. 
D) warranty on the new computer.

Question 18

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

Accepted Answer

A) finished goods inventory. 
B) work in process inventory. 
C) merchandise inventory. 
D) raw materials inventory. 
A) finished goods inventory. 
B) work in process inventory. 
C) merchandise inventory. 
D) raw materials inventory.

Question 19

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 20

Prime costs consist of

Accepted Answer

A) direct materials and direct labor. 
B) direct labor and manufacturing overhead. 
C) direct materials and manufacturing overhead. 
D) direct materials,direct labor and manufacturing overhead. 
A) direct materials and direct labor. 
B) direct labor and manufacturing overhead. 
C) direct materials and manufacturing overhead. 
D) direct materials,direct labor and manufacturing overhead.

Research and development is needed to improve products and to design new products.

Which of the following is an example of an inventoriable cost when manufacturing products?

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

Rustic Living Furniture Company manufactures furniture at its central Kentucky factory.Some of its costs from the past year include: Prime costs for Rustic Living Furniture Company totaled

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

Indirect materials and indirect labor are ________ for a manufactured product.

A company has fixed costs of $60,000 per month.If sales double from 6,000 to 12,000 units during the month,fixed costs in total will

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the total sales revenue will be

Product costs and period costs receive similar treatment when presented in the financial statements.

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

Pink Ribbon Shoppe,a clothing retailer,had the following total costs as grouped by value chain element: What were the company's period costs?

Joe's Bottling Company provided the following expense information for July: What is the total cost for the customer service category of the value chain?

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods available for sale?

Compute the missing amounts.

Manufacturing overhead costs for a product include

When deciding to buy a new computer,all of the following should be considered except for the

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company.

Prime costs consist of

Introduction to Managerial Accounting

Job Costing

Activity-Based Costing, lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters

Exam 2: Building Blocks of Managerial Accounting

Research and development is needed to improve products and to design new products.

Which of the following is an example of an inventoriable cost when manufacturing products?

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

Rustic Living Furniture Company manufactures furniture at its central Kentucky factory.Some of its costs from the past year include: Prime costs for Rustic Living Furniture Company totaled

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

Indirect materials and indirect labor are ________ for a manufactured product.

A company has fixed costs of $60,000 per month.If sales double from 6,000 to 12,000 units during the month,fixed costs in total will

London Plastics sells a product for $15.00 per unit.The product requires $4.00 per unit in variable costs to produce it.The company plans on selling 12,000 units of this product.If the monthly fixed costs are $84,000,the total sales revenue will be

Product costs and period costs receive similar treatment when presented in the financial statements.

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

Pink Ribbon Shoppe,a clothing retailer,had the following total costs as grouped by value chain element: What were the company's period costs?

Joe's Bottling Company provided the following expense information for July: What is the total cost for the customer service category of the value chain?

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods available for sale?

Compute the missing amounts.

Manufacturing overhead costs for a product include

When deciding to buy a new computer,all of the following should be considered except for the

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company.

Prime costs consist of

Introduction to Managerial Accounting

Job Costing

Activity-Based Costing, lean Operations, and the Costs of Quality

Process Costing

Cost Behavior

Cost-Volume-Profit Analysis

Relevant Costs for Short-Term Decisions

The Master Budget

Performance Evaluation

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters