Exam 2: Building Blocks of Managerial Accounting

Plowin' Supply plans to make 15,000 tractors at its plant. Fixed costs are $540,000 and variable costs are $200 per tractor. What is the average cost per tractor?

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

All of the following are considered variable costs except

Explain the type of inventory that is characteristic at a service company.

Conversion costs consist of

When making a decision to buy a new computer, all of the following should be considered except

All costs contain both a fixed and a variable portion.

Which of the following would NOT be considered period costs?

All of the following items would be found in raw materials inventory for a furniture manufacturer except

Where would period costs be found on the financial statements?

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 research and development category of the value chain?

Happy Feet Running Company manufactures running shoes and has the following costs during the past month: What is the total direct materials for Happy Feet Running Company for the month?

Which of the following are merchandising companies?

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

Which of the following would not be considered a direct cost of a mattress?

Which of the following items is not used when calculating the cost of goods manufactured?

London Plastics has monthly fixed costs of $87,000, while its variable costs are $4.60 per unit. If the sales price of a unit is $14.00 and London Plastics sell 15,000 units, the company's average fixed costs per unit will be

How would Chevrolet classify its partially completed vehicles?

Before operating income can be determined for a manufacturer, which of the following is calculated?

Advertising expenses would be considered which element of the value chain?