Exam 2: Building Blocks of Managerial Accounting

All of the following activities are included in the value chain except

The following amounts were taken from the general ledger of the Excellent Manufacturing Company. Compute the cost of goods manufactured and the cost of goods sold for the company for the year.

Selected information regarding a company's most recent quarter follows (all data in thousands). What was cost of goods sold?

Which type of company typically produces its own inventory?

A company has monthly fixed costs of $96,000. The variable costs are $8.00 per unit. If the sales price of a unit is $14.00 and we sell 8000 units, the company's total variable costs will be

How do variable costs per unit behave?

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

Gross profit is calculated by

Manufacturing overhead includes

An accounting firm would be classified as a

Retailers sell their products to consumers.

Wooden Shed Company manufactures custom wooden sheds. Some of its costs from the past year include: Product costs for Rustic Living Furniture Company totaled

Cost of goods sold is a major expense of service companies.

Use the appropriate letter(s)to indicate if the following costs would be found on the income statement of a A. service company. B. merchandising company. C. manufacturing company. You may use more than one letter for each answer. ________ Revenue ________ Salaries expense ________ Customer service expense ________ Cost of goods manufactured ________ Cost of goods sold

Which of the following is an example of a period cost when manufacturing products?

On the line in front of each statement, enter the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all. ________ The combination of direct materials and direct labor. ________ Costs that change in total in direct proportion to changes in volume. ________ A cost that relates to the cost object, but cannot be traced to it. ________ A cost that has already been incurred.

Country Furniture Company manufactures furniture at its Akron, Ohio, factory. Some of its costs from the past year include: Direct material costs for Country Furniture Company totaled

Page's sells books. The following information summarizes the company's operating expenses for the year: What is operating income?

Manufacturers consider selling and administrative costs to be

Indicate whether each of the following costs is a product cost or a period cost. Assume it is for a manufacturer. A. ________ direct materials used in factory B. ________ factory utilities C. ________ salespersons' commissions D. ________ salary of plant manager E. ________ indirect materials used in factory F. ________ depreciation expense on store equipment G. ________ indirect labor incurred in factory H. ________ advertising expense I. ________ direct labor incurred in factory J. ________ factory machinery repairs and maintenance K. ________ depreciation expense on factory machinery L. ________ supplies used in store M. ________ plant insurance expired