Question 1

Joe's Bottling Company provided the following expense information for July:   What is the total cost for the marketing category of the value chain?

Accepted Answer

A) $72,000 
B) $180,600 
C) $187,400 
D) $246,300 
A) $72,000 
B) $180,600 
C) $187,400 
D) $246,300

Question 2

Jiffy Lube, an automotive maintenance company, is primarily what type of company?

Accepted Answer

A) Manufacturer 
B) Retailer 
C) Wholesaler 
D) Service 
A) Manufacturer 
B) Retailer 
C) Wholesaler 
D) Service

Question 3

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

Accepted Answer

A) $46,250 
B) $40,250 
C) $53,175 
D) $74,725 
A) $46,250 
B) $40,250 
C) $53,175 
D) $74,725

Question 4

A product support hotline would be considered

Accepted Answer

A) marketing. 
B) distribution. 
C) production or purchases. 
D) customer service. 
A) marketing. 
B) distribution. 
C) production or purchases. 
D) customer service.

Question 5

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 6

Selected information regarding a company's most recent quarter follows (all data in thousands).   What was the cost of direct materials used for the quarter?

Accepted Answer

A) $1060 
B) $1250 
C) $580 
D) $80 
A) $1060 
B) $1250 
C) $580 
D) $80

Question 7

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 8

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

Accepted Answer

A) $40,025 
B) $33,775 
C) $31,575 
D) $58,775 
A) $40,025 
B) $33,775 
C) $31,575 
D) $58,775

Question 9

Direct costs for one cost object will always be direct costs for any cost object.

Accepted Answer

A) True 
 B)False

Question 10

Harper Inc. has fixed costs of $600,000 when it produces 300,000 units. Its total variable costs are $150,000. When Harper Inc. produces 400,000 units which is within the relevant range, fixed costs will be

Accepted Answer

A) $600.000. 
B) $800,000. 
C) $200,000. 
D) $225,000. 
A) $600.000. 
B) $800,000. 
C) $200,000. 
D) $225,000.

Question 11

Over the long-term, all costs are uncontrollable.

Accepted Answer

A) True 
 B)False

Question 12

An example of a controllable cost is

Accepted Answer

A) property taxes. 
B) advertising. 
C) depreciation on headquarters building. 
D) property insurance. 
A) property taxes. 
B) advertising. 
C) depreciation on headquarters building. 
D) property insurance.

Question 13

Which of the following would not be included in the value chain?

Accepted Answer

A) Website development costs 
B) Costs to deliver product to retail outlets 
C) Costs of print advertisements 
D) All of these costs would be included as part of the value chain. 
A) Website development costs 
B) Costs to deliver product to retail outlets 
C) Costs of print advertisements 
D) All of these costs would be included as part of the value chain.

Question 14

The income statement of a retailer would include which of the following?

Accepted Answer

A) Cost of goods sold 
B) Value of inventory 
C) Accounts payable 
D) Accounts receivable 
A) Cost of goods sold 
B) Value of inventory 
C) Accounts payable 
D) Accounts receivable

Question 15

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

Accepted Answer

A) $158,600 
B) $333,500 
C) $95,800 
D) $168,400 
A) $158,600 
B) $333,500 
C) $95,800 
D) $168,400

Question 16

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 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

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

Accepted Answer

A) $501,200 
B) $203,500 
C) $234,500 
D) $332,000 
A) $501,200 
B) $203,500 
C) $234,500 
D) $332,000

Question 19

Joe's Bottling Company provided the following expense information for July:   What is the total cost for the distribution category of the value chain?

Accepted Answer

A) $40,300 
B) $43,400 
C) $220,700 
D) $173,700 
A) $40,300 
B) $43,400 
C) $220,700 
D) $173,700

Question 20

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

Accepted Answer

A) $200,700. 
B) $96,400. 
C) $197,000. 
D) $243,000. 
A) $200,700. 
B) $96,400. 
C) $197,000. 
D) $243,000.

Joe's Bottling Company provided the following expense information for July: What is the total cost for the marketing category of the value chain?

Jiffy Lube, an automotive maintenance company, is primarily what type of company?

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

A product support hotline would be considered

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the cost of direct materials used for the quarter?

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

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

Direct costs for one cost object will always be direct costs for any cost object.

Harper Inc. has fixed costs of $600,000 when it produces 300,000 units. Its total variable costs are $150,000. When Harper Inc. produces 400,000 units which is within the relevant range, fixed costs will be

Over the long-term, all costs are uncontrollable.

An example of a controllable cost is

Which of the following would not be included in the value chain?

The income statement of a retailer would include which of the following?

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

When do inventoriable costs become expenses?

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

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

Joe's Bottling Company provided the following expense information for July: What is the total cost for the distribution category of the value chain?

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

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

Joe's Bottling Company provided the following expense information for July: What is the total cost for the marketing category of the value chain?

Jiffy Lube, an automotive maintenance company, is primarily what type of company?

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

A product support hotline would be considered

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the cost of direct materials used for the quarter?

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

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

Direct costs for one cost object will always be direct costs for any cost object.

Harper Inc. has fixed costs of $600,000 when it produces 300,000 units. Its total variable costs are $150,000. When Harper Inc. produces 400,000 units which is within the relevant range, fixed costs will be

Over the long-term, all costs are uncontrollable.

An example of a controllable cost is

Which of the following would not be included in the value chain?

The income statement of a retailer would include which of the following?

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

When do inventoriable costs become expenses?

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

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

Joe's Bottling Company provided the following expense information for July: What is the total cost for the distribution category of the value chain?

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

Standard Costs and Variances

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Sustainability

Filters