Question 1

Indirect manufacturing costs should be included in manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 2

When do inventoriable costs become expenses?

Accepted Answer

A) When direct materials are purchased 
B) When the manufacturing process begins 
C) When the manufacturing process is completed 
D) None of the above 
A) When direct materials are purchased 
B) When the manufacturing process begins 
C) When the manufacturing process is completed 
D) None of the above

Question 3

Merchandising companies include both wholesalers and retailers.

Accepted Answer

A) True 
 B)False

Question 4

Direct labor for a company was $145,000;manufacturing overhead was $300,000;and direct materials were $270,000.Prime costs would total

Accepted Answer

A) $715,000. 
B) $445,000. 
C) $415,000. 
D) $570,000. 
A) $715,000. 
B) $445,000. 
C) $415,000. 
D) $570,000.

Question 5

Which element of the value chain would a technical support hotline for customers be considered?

Accepted Answer

A) Design 
B) Customer service 
C) Distribution 
D) Marketing 
A) Design 
B) Customer service 
C) Distribution 
D) Marketing

Question 6

Which of the following activities is not included in the value chain?

Accepted Answer

A) Reporting 
B) Design 
C) Production 
D) Customer service 
A) Reporting 
B) Design 
C) Production 
D) Customer service

Question 7

A restaurant is facing a decision about whether it should bake its own apple pies or whether it should continue to purchase the pies from a local bakery.Which of the following costs would be relevant to its decision?

Accepted Answer

A) The salary of the restaurant manager 
B) The price the restaurant sells the apple pies for 
C) The purchase price of the apple pies purchased from the local bakery 
D) The original purchase price of the current machinery 
A) The salary of the restaurant manager 
B) The price the restaurant sells the apple pies for 
C) The purchase price of the apple pies purchased from the local bakery 
D) The original purchase price of the current machinery

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 company's average fixed costs per unit will be

Accepted Answer

A) $4.00 per unit. 
B) $7.00 per unit. 
C) $10.00 per unit. 
D) $11.00 per unit. 
A) $4.00 per unit. 
B) $7.00 per unit. 
C) $10.00 per unit. 
D) $11.00 per unit.

Question 9

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

Accepted Answer

A) $171,500. 
B) $79,000. 
C) $150,000. 
D) $217,500. 
A) $171,500. 
B) $79,000. 
C) $150,000. 
D) $217,500.

Question 10

Controlling costs across the whole value chain often requires a trade-off between the individual elements of the value chain.

Accepted Answer

A) True 
 B)False

Question 11

The costs incurred to transport merchandise to a company's retail store would be considered to be what element of the value chain?

Accepted Answer

A) Marketing 
B) Customer service 
C) Production or purchases 
D) Research and development 
A) Marketing 
B) Customer service 
C) Production or purchases 
D) Research and development

Question 12

Differentiate between:
A.direct materials versus indirect materials
B.direct labor versus indirect labor

Accepted Answer

Student responses will vary but should i

Question 13

The Seashell Factory sells beach goods to tourists.The following information summarizes the company's operating expenses for the year:
 
What is gross profit?

Accepted Answer

A) $62,000 
B) $9,000 
C) $65,000 
D) $117,000 
A) $62,000 
B) $9,000 
C) $65,000 
D) $117,000

Question 14

Direct materials for a company were $500,000;manufacturing overhead was $250,000;and direct labor was $770,000.Prime 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 15

Costs that remain the same among alternatives are

Accepted Answer

A) sunk costs. 
B) irrelevant costs. 
C) controllable costs. 
D) uncontrollable costs. 
A) sunk costs. 
B) irrelevant costs. 
C) controllable costs. 
D) uncontrollable costs.

Question 16

Lucky Cow Dairy provided the following expense information for May:
 
What is the total cost of research and development of the value chain?

Accepted Answer

A) $73,000 
B) $70,000 
C) $55,000 
D) $195,000 
A) $73,000 
B) $70,000 
C) $55,000 
D) $195,000

Question 17

Differentiate between fixed and variable costs and give an example of each.

Accepted Answer

Fixed costs stay constant in total over

Question 18

Testing ways to increase the strength of your product would be classified as which element of the value chain?

Accepted Answer

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

Question 19

Over the long-term,all costs are uncontrollable.

Accepted Answer

A) True 
 B)False

Question 20

All of the components of manufacturing - from research and development through customer service after the sale - are part of a firm's value chain.

Accepted Answer

A) True 
 B)False

Indirect manufacturing costs should be included in manufacturing overhead.

When do inventoriable costs become expenses?

Merchandising companies include both wholesalers and retailers.

Direct labor for a company was $145,000;manufacturing overhead was $300,000;and direct materials were $270,000.Prime costs would total

Which element of the value chain would a technical support hotline for customers be considered?

Which of the following activities is not included in the value chain?

A restaurant is facing a decision about whether it should bake its own apple pies or whether it should continue to purchase the pies from a local bakery.Which of the following costs would be relevant to its decision?

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 average fixed costs per unit will be

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

Controlling costs across the whole value chain often requires a trade-off between the individual elements of the value chain.

The costs incurred to transport merchandise to a company's retail store would be considered to be what element of the value chain?

Differentiate between: A.direct materials versus indirect materials B.direct labor versus indirect labor

The Seashell Factory sells beach goods to tourists.The following information summarizes the company's operating expenses for the year: What is gross profit?

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

Costs that remain the same among alternatives are

Lucky Cow Dairy provided the following expense information for May: What is the total cost of research and development of the value chain?

Differentiate between fixed and variable costs and give an example of each.

Testing ways to increase the strength of your product would be classified as which element of the value chain?

Over the long-term,all costs are uncontrollable.

All of the components of manufacturing - from research and development through customer service after the sale - are part of a firm's value chain.

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

Indirect manufacturing costs should be included in manufacturing overhead.

When do inventoriable costs become expenses?

Merchandising companies include both wholesalers and retailers.

Direct labor for a company was $145,000;manufacturing overhead was $300,000;and direct materials were $270,000.Prime costs would total

Which element of the value chain would a technical support hotline for customers be considered?

Which of the following activities is not included in the value chain?

A restaurant is facing a decision about whether it should bake its own apple pies or whether it should continue to purchase the pies from a local bakery.Which of the following costs would be relevant to its decision?

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 average fixed costs per unit will be

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

Controlling costs across the whole value chain often requires a trade-off between the individual elements of the value chain.

The costs incurred to transport merchandise to a company's retail store would be considered to be what element of the value chain?

Differentiate between: A.direct materials versus indirect materials B.direct labor versus indirect labor

The Seashell Factory sells beach goods to tourists.The following information summarizes the company's operating expenses for the year: What is gross profit?

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

Costs that remain the same among alternatives are

Lucky Cow Dairy provided the following expense information for May: What is the total cost of research and development of the value chain?

Differentiate between fixed and variable costs and give an example of each.

Testing ways to increase the strength of your product would be classified as which element of the value chain?

Over the long-term,all costs are uncontrollable.

All of the components of manufacturing - from research and development through customer service after the sale - are part of a firm's value chain.

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