Question 1

Lots of Stuff Company reports the following data for its first year of operation.
 
What is the cost of goods sold?

Accepted Answer

A) $365,000 
B) $455,000 
C) $750,000 
D) $505,000 
A) $365,000 
B) $455,000 
C) $750,000 
D) $505,000

Question 2

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

Accepted Answer

G,G has a

Question 3

Enter the letter of the type of each company category on the line in front of each statement.Letters may be used more than once or not at all.

Accepted Answer

The answer of Enter the letter of the type of...

Question 4

Which element of the value chain would depreciation on a factory be classified as?

Accepted Answer

A) Design 
B) Distribution 
C) Research and development 
D) Production 
A) Design 
B) Distribution 
C) Research and development 
D) Production

Question 5

Porches,Inc. ,sells lawn furniture.Selected financial information for the most recent year follows.
Beginning merchandise inventory on January 1 was $33,000.
Ending merchandise inventory on December 31 was $35,000.
Purchases during the year were $92,000.
Selling and administrative expenses were $75,000.
Sales for year were $262,000.
What was gross profit?

Accepted Answer

A) $(165,000) 
B) $170,000 
C) $187,000 
D) $172,000 
A) $(165,000) 
B) $170,000 
C) $187,000 
D) $172,000

Question 6

Inventoriable product costs for a product are described by which of the following?

Accepted Answer

A) Inventoriable product costs are narrower in scope than total costs. 
B) Inventoriable product costs include all costs along the value chain. 
C) Inventoriable product costs consist of direct materials,direct labor and manufacturing overhead. 
D) Both A and C are correct. 
A) Inventoriable product costs are narrower in scope than total costs. 
B) Inventoriable product costs include all costs along the value chain. 
C) Inventoriable product costs consist of direct materials,direct labor and manufacturing overhead. 
D) Both A and C are correct.

Question 7

Which of the following represents a sunk cost?

Accepted Answer

A) A historical cost that is always relevant 
B) A historical cost that is never relevant 
C) An outlay expected to be incurred in the future 
D) A cost that is relevant to any decision 
A) A historical cost that is always relevant 
B) A historical cost that is never relevant 
C) An outlay expected to be incurred in the future 
D) A cost that is relevant to any decision

Question 8

Service companies must carry a large amount of inventory to meet consumer demand.

Accepted Answer

A) True 
 B)False

Question 9

In addition to cost of goods manufactured,which of the following is needed to compute the cost of goods sold for a manufacturer?

Accepted Answer

A) Beginning work in process inventory less ending work in process inventory 
B) Ending work in process inventory less beginning work in process inventory 
C) Ending finished goods 
D) Beginning finished goods inventory less ending finished goods inventory 
A) Beginning work in process inventory less ending work in process inventory 
B) Ending work in process inventory less beginning work in process inventory 
C) Ending finished goods 
D) Beginning finished goods inventory less ending finished goods inventory

Question 10

Differential cost is the difference in cost between two alternatives.

Accepted Answer

A) True 
 B)False

Question 11

In which of the following common types of business companies have costs of business activities that include inventory-related freight in costs and the cost of import duties or tariffs?

Accepted Answer

A) service company 
B) manufacturing company 
C) merchandising company 
D) all of these companies 
A) service company 
B) manufacturing company 
C) merchandising company 
D) all of these companies

Question 12

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

Accepted Answer

A) $41,000. 
B) $129,000. 
C) $44,500. 
D) $67,500. 
A) $41,000. 
B) $129,000. 
C) $44,500. 
D) $67,500.

Question 13

Rent on a factory building would be considered to be a ________ cost.

Accepted Answer

A) product 
B) period 
C) direct 
D) none of the above 
A) product 
B) period 
C) direct 
D) none of the above

Question 14

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

Accepted Answer

The answer of On the line in front of each...

Question 15

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the company's total sales revenue?

Accepted Answer

A) $(15,000) 
B) $142,500 
C) $112,500 
D) $97,500 
A) $(15,000) 
B) $142,500 
C) $112,500 
D) $97,500

Question 16

Youngstown Rubber reports the following data for its first year of operation.
 
What are the total manufacturing costs to account for?

Accepted Answer

A) $945,000 
B) $810,000 
C) $1,265,000 
D) $455,000 
A) $945,000 
B) $810,000 
C) $1,265,000 
D) $455,000

Question 17

The balance sheet of a service company would include which of the following?

Accepted Answer

A) Factory equipment depreciation 
B) Cost of goods manufactured 
C) Accounts receivable 
D) Cost of goods sold 
A) Factory equipment depreciation 
B) Cost of goods manufactured 
C) Accounts receivable 
D) Cost of goods sold

Question 18

Paper Clip Company sells office supplies.The following information summarizes the company's operating activities for the year:
 
What is gross profit?

Accepted Answer

A) $71,000 
B) $42,000 
C) $83,000 
D) $56,000 
A) $71,000 
B) $42,000 
C) $83,000 
D) $56,000

Question 19

Conversion 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.

Question 20

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

Accepted Answer

A) $510,500. 
B) $486,500. 
C) $370,000. 
D) $526,500. 
A) $510,500. 
B) $486,500. 
C) $370,000. 
D) $526,500.

Lots of Stuff Company reports the following data for its first year of operation. What is the cost of goods sold?

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

Enter the letter of the type of each company category on the line in front of each statement.Letters may be used more than once or not at all.

Which element of the value chain would depreciation on a factory be classified as?

Inventoriable product costs for a product are described by which of the following?

Which of the following represents a sunk cost?

Service companies must carry a large amount of inventory to meet consumer demand.

In addition to cost of goods manufactured,which of the following is needed to compute the cost of goods sold for a manufacturer?

Differential cost is the difference in cost between two alternatives.

In which of the following common types of business companies have costs of business activities that include inventory-related freight in costs and the cost of import duties or tariffs?

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

Rent on a factory building would be considered to be a ________ cost.

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the company's total sales revenue?

Youngstown Rubber reports the following data for its first year of operation. What are the total manufacturing costs to account for?

The balance sheet of a service company would include which of the following?

Paper Clip Company sells office supplies.The following information summarizes the company's operating activities for the year: What is gross profit?

Conversion costs consist of

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

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

Lots of Stuff Company reports the following data for its first year of operation. What is the cost of goods sold?

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

Enter the letter of the type of each company category on the line in front of each statement.Letters may be used more than once or not at all.

Which element of the value chain would depreciation on a factory be classified as?

Inventoriable product costs for a product are described by which of the following?

Which of the following represents a sunk cost?

Service companies must carry a large amount of inventory to meet consumer demand.

In addition to cost of goods manufactured,which of the following is needed to compute the cost of goods sold for a manufacturer?

Differential cost is the difference in cost between two alternatives.

In which of the following common types of business companies have costs of business activities that include inventory-related freight in costs and the cost of import duties or tariffs?

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

Rent on a factory building would be considered to be a ________ cost.

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.

The sales price of a particular unit is $19.00.The company plans to sell 7,500 units.The variable costs are $6.00 per unit and monthly fixed costs are $112,500.Given this information what is the company's total sales revenue?

Youngstown Rubber reports the following data for its first year of operation. What are the total manufacturing costs to account for?

The balance sheet of a service company would include which of the following?

Paper Clip Company sells office supplies.The following information summarizes the company's operating activities for the year: What is gross profit?

Conversion costs consist of

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

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