Question 1

Manufacturing companies usually have three types of inventory.

Accepted Answer

A) True 
 B)False

Question 2

Challenge Tennis & Recreation's operating activities for the year are listed below.
 
What is the gross profit for the year?

Accepted Answer

A) $159,000 
B) $333,000 
C) $97,000 
D) $169,000 
A) $159,000 
B) $333,000 
C) $97,000 
D) $169,000

Question 3

Which of the following describes the way in which total fixed costs behave?

Accepted Answer

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

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 design category of the value chain?

Accepted Answer

A) $122,000 
B) $197,000 
C) $152,000 
D) $272,000 
A) $122,000 
B) $197,000 
C) $152,000 
D) $272,000

Question 5

Fixed costs vary in total over a wide range of activity levels.

Accepted Answer

A) True 
 B)False

Question 6

Differentiate between relevant and irrelevant costs and give an example using both.

Accepted Answer

When making a decision,those costs that

Question 7

All costs contain both a fixed and a variable portion.

Accepted Answer

A) True 
 B)False

Question 8

Use the correct number to designate each item below.Assume they are for a manufacturer.
1.direct materials
2.selling and general expenses
3.manufacturing overhead
4.direct labor

Accepted Answer

A)3,B)2,C)

Question 9

Explain the difference between raw materials inventory,work in process inventory,and finished goods inventory.

Accepted Answer

Raw materials inventory includes all mat

Question 10

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars.All of the following costs would be relevant to its decision except

Accepted Answer

A) the cost per gallon of gasoline. 
B) the purchase price of the hybrid model. 
C) the book value of the current fleet of sales vehicles. 
D) the purchase price of the gasoline-engine model. 
A) the cost per gallon of gasoline. 
B) the purchase price of the hybrid model. 
C) the book value of the current fleet of sales vehicles. 
D) the purchase price of the gasoline-engine model.

Question 11

Inventoriable product costs are best described by which of the following statements?

Accepted Answer

A) They are expensed on the income statement when incurred. 
B) They include marketing and distribution costs. 
C) They are used for external reporting purposes. 
D) Both A and C are correct. 
A) They are expensed on the income statement when incurred. 
B) They include marketing and distribution costs. 
C) They are used for external reporting purposes. 
D) Both A and C are correct.

Question 12

Inventoriable product costs for a manufactured product include

Accepted Answer

A) the costs of direct materials,direct labor and manufacturing overhead. 
B) marketing and research and development costs. 
C) the costs of direct materials and direct labor only. 
D) none of the above. 
A) the costs of direct materials,direct labor and manufacturing overhead. 
B) marketing and research and development costs. 
C) the costs of direct materials and direct labor only. 
D) none of the above.

Question 13

Selected information regarding a company's most recent quarter follows (all data in thousands).
 
What was manufacturing overhead for the quarter?

Accepted Answer

A) $260 
B) $40 
C) $500 
D) $140 
A) $260 
B) $40 
C) $500 
D) $140

Question 14

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the company's average fixed costs per unit will be

Accepted Answer

A) $13.00 per unit. 
B) $6.00 per unit. 
C) $21.00 per unit. 
D) $15.00 per unit. 
A) $13.00 per unit. 
B) $6.00 per unit. 
C) $21.00 per unit. 
D) $15.00 per unit.

Question 15

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

Accepted Answer

A) $650,000 
B) $835,000 
C) $580,000 
D) $670,000 
A) $650,000 
B) $835,000 
C) $580,000 
D) $670,000

Question 16

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 variable cost?

Accepted Answer

A) $45,000 
B) $112,500 
C) $142,500 
D) $97,500 
A) $45,000 
B) $112,500 
C) $142,500 
D) $97,500

Question 17

Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted).
 
What was cost of goods sold?

Accepted Answer

A) $1,450 
B) $1,350 
C) $1,470 
D) $790 
A) $1,450 
B) $1,350 
C) $1,470 
D) $790

Question 18

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

Accepted Answer

A) $47,000 
B) $32,000 
C) $85,000 
D) $117,000 
A) $47,000 
B) $32,000 
C) $85,000 
D) $117,000

Question 19

Selected information regarding a company's most recent quarter follows (all data in thousands).
 
What was the beginning finished goods inventory?

Accepted Answer

A) $2,300 
B) $500 
C) $2,100 
D) $2,500 
A) $2,300 
B) $500 
C) $2,100 
D) $2,500

Question 20

The income statements of manufacturing companies are more complex than those of service or merchandising companies.

Accepted Answer

A) True 
 B)False

Manufacturing companies usually have three types of inventory.

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the gross profit for the year?

Which of the following describes the way in which total fixed costs behave?

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 design category of the value chain?

Fixed costs vary in total over a wide range of activity levels.

Differentiate between relevant and irrelevant costs and give an example using both.

All costs contain both a fixed and a variable portion.

Use the correct number to designate each item below.Assume they are for a manufacturer. 1.direct materials 2.selling and general expenses 3.manufacturing overhead 4.direct labor

Explain the difference between raw materials inventory,work in process inventory,and finished goods inventory.

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars.All of the following costs would be relevant to its decision except

Inventoriable product costs are best described by which of the following statements?

Inventoriable product costs for a manufactured product include

Selected information regarding a company's most recent quarter follows (all data in thousands). What was manufacturing overhead for the quarter?

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the company's average fixed costs per unit will be

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

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 variable cost?

Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted). What was cost of goods sold?

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the beginning finished goods inventory?

The income statements of manufacturing companies are more complex than those of service or merchandising companies.

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

Manufacturing companies usually have three types of inventory.

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the gross profit for the year?

Which of the following describes the way in which total fixed costs behave?

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 design category of the value chain?

Fixed costs vary in total over a wide range of activity levels.

Differentiate between relevant and irrelevant costs and give an example using both.

All costs contain both a fixed and a variable portion.

Use the correct number to designate each item below.Assume they are for a manufacturer. 1.direct materials 2.selling and general expenses 3.manufacturing overhead 4.direct labor

Explain the difference between raw materials inventory,work in process inventory,and finished goods inventory.

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars.All of the following costs would be relevant to its decision except

Inventoriable product costs are best described by which of the following statements?

Inventoriable product costs for a manufactured product include

Selected information regarding a company's most recent quarter follows (all data in thousands). What was manufacturing overhead for the quarter?

A company has monthly fixed costs of $112,500.The variable costs are $6.00 per unit.If the sales price of a unit is $19.00 and we sell 7,500 units,the company's average fixed costs per unit will be

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

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 variable cost?

Selected financial information for Brookeville Manufacturing is presented in the following table (000s omitted). What was cost of goods sold?

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the beginning finished goods inventory?

The income statements of manufacturing companies are more complex than those of service or merchandising companies.

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