Question 1

An example of direct labor would be which of the following?

Accepted Answer

A) Salary of a production manager 
B) Salary of the vice-president of operations 
C) Wages of factory security 
D) Wages of assembly line personnel 
A) Salary of a production manager 
B) Salary of the vice-president of operations 
C) Wages of factory security 
D) Wages of assembly line personnel

Question 2

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 company's total variable costs will be

Accepted Answer

A) $184,000. 
B) $154,000. 
C) $210,000. 
D) $48,000. 
A) $184,000. 
B) $154,000. 
C) $210,000. 
D) $48,000.

Question 3

Paper Clip Company sells office supplies.The following information summarizes the company's operating activities for the year:
 
What is cost of goods sold?

Accepted Answer

A) $85,000 
B) $89,000 
C) $108,000 
D) $112,000 
A) $85,000 
B) $89,000 
C) $108,000 
D) $112,000

Question 4

Sneider Family Orange Groves processes a variety of fresh juices.The company has the following expenses for July:
 
What is the total cost for the marketing category of the value chain?

Accepted Answer

A) $272,000 
B) $34,000 
C) $152,000 
D) $197,000 
A) $272,000 
B) $34,000 
C) $152,000 
D) $197,000

Question 5

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

Accepted Answer

A) $142,000 
B) $17,000 
C) $72,000 
D) $89,000 
A) $142,000 
B) $17,000 
C) $72,000 
D) $89,000

Question 6

All of the following are part of a company's value chain except

Accepted Answer

A) design. 
B) distribution. 
C) administration. 
D) marketing. 
A) design. 
B) distribution. 
C) administration. 
D) marketing.

Question 7

Which type of company makes up the largest sector of the United States economy?

Accepted Answer

A) Manufacturers 
B) Merchandising 
C) Wholesalers 
D) Service companies 
A) Manufacturers 
B) Merchandising 
C) Wholesalers 
D) Service companies

Question 8

Which of the following types of information differs between alternatives and can affect the future?

Accepted Answer

A) Historical 
B) Irrelevant 
C) Relevant 
D) Predictable 
A) Historical 
B) Irrelevant 
C) Relevant 
D) Predictable

Question 9

How do fixed costs per unit behave?

Accepted Answer

A) They remain the same throughout production levels within the relevant range. 
B) They decrease as production decreases. 
C) They increase as production decreases. 
D) They increase as production increases. 
A) They remain the same throughout production levels within the relevant range. 
B) They decrease as production decreases. 
C) They increase as production decreases. 
D) They increase as production increases.

Question 10

Selected financial information for Greek Food Producers is presented in the following table (000s omitted).
 
What was operating income?

Accepted Answer

A) $3,850 
B) $4,500 
C) $3,180 
D) $2,690 
A) $3,850 
B) $4,500 
C) $3,180 
D) $2,690

Question 11

Getting to school for your 8 a.m.class doesn't leave much time for breakfast,and you are quite hungry by the time class ends.It is a long walk to the cafeteria,the lines are long once you get there,and you find yourself having to decide between having breakfast and getting to your next class on time.Many of your friends have expressed the same problem.The administration has agreed to let you set up a table just outside the building where you will sell various snacks for $1 each.You have agreed to pay the administration $400 per month and salaries to your friends to run the business will be another $400 per month.It will cost you 60 cents each to buy the pre-packaged snacks.You believe you can sell 2,500 snack packs per month.
a.What are the total fixed costs per month?
b.What are the total variable costs per month?
c.What is the fixed cost per snack pack?
d.What is the variable cost per snack pack?
e.What is the average cost per snack pack?
f.What is the average profit margin per snack pack?
g.Based on your analysis,should you start the snack pack business?

Accepted Answer

a.$800 ($400 + $400)
b.$1,500 (60 cents

Question 12

Sunk costs are irrelevant to the decision making process.

Accepted Answer

A) True 
 B)False

Question 13

How are average cost and marginal cost computed?

Accepted Answer

The average cost is the total

Question 14

Before these materials are used to manufacture its cars,Toyota classifies steel,glass,and plastic as

Accepted Answer

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

Question 15

Kitch Company sells collectibles.The following information summarizes Kitch Company's operating activities for the most recent year:
   
Required: Prepare an income statement for the most recent year.

Accepted Answer

The answer of Kitch Company sells collectibles.The following information summarizes...

Question 16

In a (an)________ company,salaries and benefits make up over 70% of the total costs.

Accepted Answer

A) merchandising 
B) service 
C) manufacturing 
D) All companies have a high percentage of labor costs. 
A) merchandising 
B) service 
C) manufacturing 
D) All companies have a high percentage of labor costs.

Question 17

Lucky Cow Dairy provided the following expense information for May:
 
What is the total cost for the design category of the value chain?

Accepted Answer

A) $267,000 
B) $188,000 
C) $197,000 
D) $125,000 
A) $267,000 
B) $188,000 
C) $197,000 
D) $125,000

Question 18

Which of the following is an example of indirect labor in a manufacturing plant?

Accepted Answer

A) Chief operating officer 
B) Machine operators 
C) Salespersons 
D) Plant managers 
A) Chief operating officer 
B) Machine operators 
C) Salespersons 
D) Plant managers

Question 19

Which of the following are classified as manufacturing overhead?

Accepted Answer

A) Indirect labor and indirect materials 
B) Direct materials and direct labor 
C) All materials 
D) Factory rent and direct labor 
A) Indirect labor and indirect materials 
B) Direct materials and direct labor 
C) All materials 
D) Factory rent and direct labor

Question 20

Macy's (the department store chain)classifies its clothing held for sale as

Accepted Answer

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

An example of direct labor would be which of the following?

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 company's total variable costs will be

Paper Clip Company sells office supplies.The following information summarizes the company's operating activities for the year: What is cost of goods sold?

Sneider Family Orange Groves processes a variety of fresh juices.The company has the following expenses for July: What is the total cost for the marketing category of the value chain?

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

All of the following are part of a company's value chain except

Which type of company makes up the largest sector of the United States economy?

Which of the following types of information differs between alternatives and can affect the future?

How do fixed costs per unit behave?

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). What was operating income?

Sunk costs are irrelevant to the decision making process.

How are average cost and marginal cost computed?

Before these materials are used to manufacture its cars,Toyota classifies steel,glass,and plastic as

Kitch Company sells collectibles.The following information summarizes Kitch Company's operating activities for the most recent year: Required: Prepare an income statement for the most recent year.

In a (an)________ company,salaries and benefits make up over 70% of the total costs.

Lucky Cow Dairy provided the following expense information for May: What is the total cost for the design category of the value chain?

Which of the following is an example of indirect labor in a manufacturing plant?

Which of the following are classified as manufacturing overhead?

Macy's (the department store chain)classifies its clothing held for sale as

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

An example of direct labor would be which of the following?

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 company's total variable costs will be

Paper Clip Company sells office supplies.The following information summarizes the company's operating activities for the year: What is cost of goods sold?

Sneider Family Orange Groves processes a variety of fresh juices.The company has the following expenses for July: What is the total cost for the marketing category of the value chain?

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

All of the following are part of a company's value chain except

Which type of company makes up the largest sector of the United States economy?

Which of the following types of information differs between alternatives and can affect the future?

How do fixed costs per unit behave?

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). What was operating income?

Sunk costs are irrelevant to the decision making process.

How are average cost and marginal cost computed?

Before these materials are used to manufacture its cars,Toyota classifies steel,glass,and plastic as

Kitch Company sells collectibles.The following information summarizes Kitch Company's operating activities for the most recent year: Required: Prepare an income statement for the most recent year.

In a (an)________ company,salaries and benefits make up over 70% of the total costs.

Lucky Cow Dairy provided the following expense information for May: What is the total cost for the design category of the value chain?

Which of the following is an example of indirect labor in a manufacturing plant?

Which of the following are classified as manufacturing overhead?

Macy's (the department store chain)classifies its clothing held for sale as

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