Question 1

When manufacturing products, direct labor and direct materials are classified as

Accepted Answer

A) period costs and expensed when incurred. 
B) product costs and expensed when the goods are sold. 
C) product costs and expensed when incurred. 
D) period costs and expensed when the goods are sold. 
A) period costs and expensed when incurred. 
B) product costs and expensed when the goods are sold. 
C) product costs and expensed when incurred. 
D) period costs and expensed when the goods are sold.

Question 2

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

Accepted Answer

A) $246,500 
B) $187,800 
C) $180,600 
D) $123,900 
A) $246,500 
B) $187,800 
C) $180,600 
D) $123,900

Question 3

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 4

Decision making is guided only by differential costs.

Accepted Answer

A) True 
 B)False

Question 5

Among other products, Nabisco makes Oreo cookies. Which type of company is Nabisco?

Accepted Answer

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

Question 6

An example of a period cost would be the

Accepted Answer

A) salary to the CEO. 
B) materials purchased to manufacture the product. 
C) salary to the factory supervisor. 
D) property insurance paid for the manufacturing facility. 
A) salary to the CEO. 
B) materials purchased to manufacture the product. 
C) salary to the factory supervisor. 
D) property insurance paid for the manufacturing facility.

Question 7

A company's total costs are calculated by

Accepted Answer

A) subtracting total fixed costs from total variable costs. 
B) subtracting total variable costs from total fixed costs. 
C) subtracting total fixed costs and total variable costs from sales. 
D) adding total fixed costs to total variable costs. 
A) subtracting total fixed costs from total variable costs. 
B) subtracting total variable costs from total fixed costs. 
C) subtracting total fixed costs and total variable costs from sales. 
D) adding total fixed costs to total variable costs.

Question 8

Direct materials used reflects

Accepted Answer

A) materials used to package the finished product for distribution/shipping to the customers. 
B) all materials used throughout the company including but not limited to office materials, shipping materials, all raw materials, etc. 
C) materials directly traced to the finished product that are requisitioned into the factory to be used in production. 
D) materials acquired for use in production but that have not been requisitioned by the production supervisor yet. 
A) materials used to package the finished product for distribution/shipping to the customers. 
B) all materials used throughout the company including but not limited to office materials, shipping materials, all raw materials, etc. 
C) materials directly traced to the finished product that are requisitioned into the factory to be used in production. 
D) materials acquired for use in production but that have not been requisitioned by the production supervisor yet.

Question 9

Chicago Steel's operating activities for the year are listed below.   What is the gross profit for the year?

Accepted Answer

A) $50,200 
B) $749,800 
C) $1,500,300 
D) $100,500 
A) $50,200 
B) $749,800 
C) $1,500,300 
D) $100,500

Question 10

Which of the following types of companies has raw materials, work in process and finished goods inventory?

Accepted Answer

A) Retailers 
B) Manufacturers 
C) Wholesalers 
D) Service companies 
A) Retailers 
B) Manufacturers 
C) Wholesalers 
D) Service companies

Question 11

Stacy's Manufacturing Company manufactures parts to accommodate the needs of bicycle shops. The managerial accountant reported the following data:
   Compute the average manufacturing cost per unit. What is the amount of ending finished goods inventory?

Accepted Answer

The average manufacturing cost

Question 12

Kitch Company sells collectibles. The following information summarizes Kitch Company's operating activities for the most recent year:
   Required: Prepare an income statement for the most recent year.

Accepted Answer

The answer of Kitch Company sells collectibles. The following information...

Question 13

Which of the following is an example of manufacturing overhead expense in a factory?

Accepted Answer

A) Wages of machine operators 
B) Wages of administrators in the corporate office 
C) Wages of factory maintenance personnel 
D) Salaries of salespersons 
A) Wages of machine operators 
B) Wages of administrators in the corporate office 
C) Wages of factory maintenance personnel 
D) Salaries of salespersons

Question 14

When deciding to buy a new computer, all of the following should be considered except for the

Accepted Answer

A) cost of the new computer. 
B) cost of the old computer. 
C) games that come with the new computer. 
D) warranty on the new computer. 
A) cost of the new computer. 
B) cost of the old computer. 
C) games that come with the new computer. 
D) warranty on the new computer.

Question 15

Porches, Inc. sells lawn furniture to consumers in the marketplace. The managerial accountant reported the following financial information that reflects the 20XX data:   Compute the operating income.

Accepted Answer

A) 709,900 
B) $124,200 
C) $184,400 
D) $84,500 
A) 709,900 
B) $124,200 
C) $184,400 
D) $84,500

Question 16

The main difference between the current assets on the balance sheet of a service company and a manufacturer is that a manufacturer has

Accepted Answer

A) inventory and a service company does not. 
B) cost of goods sold and a service company does not. 
C) accounts receivable and a service company does not. 
D) accounts payable and a service company does not. 
A) inventory and a service company does not. 
B) cost of goods sold and a service company does not. 
C) accounts receivable and a service company does not. 
D) accounts payable and a service company does not.

Question 17

Which of the following is a characteristic of a service company?

Accepted Answer

A) Service companies make a product. 
B) Service companies have a single category of inventory. 
C) Service companies generally have no tangible products to sell. 
D) Service companies transform raw materials into finished goods. 
A) Service companies make a product. 
B) Service companies have a single category of inventory. 
C) Service companies generally have no tangible products to sell. 
D) Service companies transform raw materials into finished goods.

Question 18

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

Accepted Answer

A) $15,100. 
B) $99,500. 
C) $95,600. 
D) $80,500. 
A) $15,100. 
B) $99,500. 
C) $95,600. 
D) $80,500.

Question 19

All companies have the same types of inventories.

Accepted Answer

A) True 
 B)False

Question 20

Selected financial information for Greek Food Producers is presented in the following table (000s omitted).   What was operating income?

Accepted Answer

A) $3970 
B) $4600 
C) $3070 
D) $2530 
A) $3970 
B) $4600 
C) $3070 
D) $2530

When manufacturing products, direct labor and direct materials are classified as

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

Decision making is guided only by differential costs.

Among other products, Nabisco makes Oreo cookies. Which type of company is Nabisco?

An example of a period cost would be the

A company's total costs are calculated by

Direct materials used reflects

Chicago Steel's operating activities for the year are listed below. What is the gross profit for the year?

Which of the following types of companies has raw materials, work in process and finished goods inventory?

Stacy's Manufacturing Company manufactures parts to accommodate the needs of bicycle shops. The managerial accountant reported the following data: Compute the average manufacturing cost per unit. What is the amount of ending finished goods inventory?

Kitch Company sells collectibles. The following information summarizes Kitch Company's operating activities for the most recent year: Required: Prepare an income statement for the most recent year.

Which of the following is an example of manufacturing overhead expense in a factory?

When deciding to buy a new computer, all of the following should be considered except for the

Porches, Inc. sells lawn furniture to consumers in the marketplace. The managerial accountant reported the following financial information that reflects the 20XX data: Compute the operating income.

The main difference between the current assets on the balance sheet of a service company and a manufacturer is that a manufacturer has

Which of the following is a characteristic of a service company?

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

All companies have the same types of inventories.

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). What was operating income?

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

When manufacturing products, direct labor and direct materials are classified as

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

Decision making is guided only by differential costs.

Among other products, Nabisco makes Oreo cookies. Which type of company is Nabisco?

An example of a period cost would be the

A company's total costs are calculated by

Direct materials used reflects

Chicago Steel's operating activities for the year are listed below. What is the gross profit for the year?

Which of the following types of companies has raw materials, work in process and finished goods inventory?

Stacy's Manufacturing Company manufactures parts to accommodate the needs of bicycle shops. The managerial accountant reported the following data: Compute the average manufacturing cost per unit. What is the amount of ending finished goods inventory?

Kitch Company sells collectibles. The following information summarizes Kitch Company's operating activities for the most recent year: Required: Prepare an income statement for the most recent year.

Which of the following is an example of manufacturing overhead expense in a factory?

When deciding to buy a new computer, all of the following should be considered except for the

Porches, Inc. sells lawn furniture to consumers in the marketplace. The managerial accountant reported the following financial information that reflects the 20XX data: Compute the operating income.

The main difference between the current assets on the balance sheet of a service company and a manufacturer is that a manufacturer has

Which of the following is a characteristic of a service company?

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

All companies have the same types of inventories.

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). What was operating income?

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