Question 1

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

Accepted Answer

A) finished goods inventory. 
B) work in process inventory. 
C) merchandise inventory. 
D) raw materials inventory. 
A) finished goods inventory. 
B) work in process inventory. 
C) merchandise inventory. 
D) raw materials inventory.

Question 2

A company's distribution system is an important part of the value chain.

Accepted Answer

A) True 
 B)False

Question 3

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

Question 4

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

Accepted Answer

A) $376,700. 
B) $211,300. 
C) $465,600. 
D) $197,500. 
A) $376,700. 
B) $211,300. 
C) $465,600. 
D) $197,500.

Question 5

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

Accepted Answer

A) $1090 
B) $1950 
C) $2560 
D) $1070 
A) $1090 
B) $1950 
C) $2560 
D) $1070

Question 6

Sally wants to purchase a new sofa because she purchased a new home at the beach. Sally visited two stores and she narrowed down her choices to a red sofa and a blue sofa. Sally owns pets so she considers the cost of insurance to insure each sofa. Sally compiled the following data and she realizes that the sales tax to purchase the sofa is 10% in her state.
   Which sofa should Sally purchase? What costs are relevant in her decision? Why?

Accepted Answer

Sally should purchase the blue sofa. The

Question 7

A company has monthly fixed costs of $115,500. The variable costs are $5.00 per unit. If the sales price of a unit is $15.00 and we sell 7700 units, the company's average fixed costs per unit will be

Accepted Answer

A) $10.00 per unit. 
B) $5.00 per unit. 
C) $20.00 per unit. 
D) $15.00 per unit. 
A) $10.00 per unit. 
B) $5.00 per unit. 
C) $20.00 per unit. 
D) $15.00 per unit.

Question 8

Which statement describes direct materials in a manufacturing setting?

Accepted Answer

A) Direct materials are used to determine total manufacturing overhead. 
B) Direct materials are used to determine total inventoriable product costs. 
C) Direct materials cannot be separately and conveniently traced. 
D) Direct materials do not become part of the finished product. 
A) Direct materials are used to determine total manufacturing overhead. 
B) Direct materials are used to determine total inventoriable product costs. 
C) Direct materials cannot be separately and conveniently traced. 
D) Direct materials do not become part of the finished product.

Question 9

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

Accepted Answer

A) $43,600. 
B) $36,200. 
C) $17,400. 
D) $65,400. 
A) $43,600. 
B) $36,200. 
C) $17,400. 
D) $65,400.

Question 10

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

Accepted Answer

Student responses will vary but should i

Question 11

Zoolander Inc. manufacturers high end fashion accessories and has provided the following data for the latest quarter ended March 31st:   Calculate cost of goods manufactured for Zoolander Inc.'s first quarter.

Accepted Answer

A) $199,900 
B) $202,900 
C) $187,500 
D) $197,000 
A) $199,900 
B) $202,900 
C) $187,500 
D) $197,000

Question 12

Porches, Inc., sells lawn furniture. Selected financial information for the most recent year follows. Beginning merchandise inventory on January 1 was $33,200.
Ending merchandise inventory on December 31 was $36,000.
Purchases during the year were $92,800.
Selling and administrative expenses were $75,400.
Sales for year were $262,800.
What was gross profit?

Accepted Answer

A) $151,400 
B) $170,000 
C) $187,400 
D) $172,800 
A) $151,400 
B) $170,000 
C) $187,400 
D) $172,800

Question 13

Service companies have the most complex accounting with regard to the income statement.

Accepted Answer

A) True 
 B)False

Question 14

Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year:   What are total operating expenses?

Accepted Answer

A) $35,000 
B) $20,800 
C) $25,100 
D) $24,100 
A) $35,000 
B) $20,800 
C) $25,100 
D) $24,100

Question 15

The income statements of manufacturing companies are more complex than those of service or merchandising companies.

Accepted Answer

A) True 
 B)False

Question 16

Macy's (the department store chain)classifies its clothing held for sale as

Accepted Answer

A) merchandise inventory. 
B) raw materials inventory. 
C) work in process inventory. 
D) finished goods inventory. 
A) merchandise inventory. 
B) raw materials inventory. 
C) work in process inventory. 
D) finished goods inventory.

Question 17

Use the correct number to designate each item below. Assume each item is for a manufacturer.
1. direct materials
2. period costs
3. manufacturing overhead
4. direct labor
A)________ rent expense on factory building
B)________ sales supplies used
C)________ factory supplies used
D)________ indirect materials used
E)________ wages of assembly line personnel

Accepted Answer

A)3, B)2, C)3, D)3,

Question 18

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

Accepted Answer

A) $218,400 
B) $24,300 
C) $20,500 
D) $153,500 
A) $218,400 
B) $24,300 
C) $20,500 
D) $153,500

Question 19

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

Accepted Answer

A) sunk 
B) imported 
C) alternative 
D) differential 
A) sunk 
B) imported 
C) alternative 
D) differential

Question 20

How are average cost and marginal cost computed?

Accepted Answer

The average cost is the total

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

A company's distribution system is an important part of the value chain.

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

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

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

A company has monthly fixed costs of $115,500. The variable costs are $5.00 per unit. If the sales price of a unit is $15.00 and we sell 7700 units, the company's average fixed costs per unit will be

Which statement describes direct materials in a manufacturing setting?

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

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

Zoolander Inc. manufacturers high end fashion accessories and has provided the following data for the latest quarter ended March 31st: Calculate cost of goods manufactured for Zoolander Inc.'s first quarter.

Service companies have the most complex accounting with regard to the income statement.

Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: What are total operating expenses?

The income statements of manufacturing companies are more complex than those of service or merchandising companies.

Macy's (the department store chain)classifies its clothing held for sale as

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

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

How are average cost and marginal cost computed?

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

American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as

A company's distribution system is an important part of the value chain.

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

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

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

A company has monthly fixed costs of $115,500. The variable costs are $5.00 per unit. If the sales price of a unit is $15.00 and we sell 7700 units, the company's average fixed costs per unit will be

Which statement describes direct materials in a manufacturing setting?

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

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

Zoolander Inc. manufacturers high end fashion accessories and has provided the following data for the latest quarter ended March 31st: Calculate cost of goods manufactured for Zoolander Inc.'s first quarter.

Service companies have the most complex accounting with regard to the income statement.

Paper Clip Company sells office supplies. The following information summarizes the company's operating activities for the year: What are total operating expenses?

The income statements of manufacturing companies are more complex than those of service or merchandising companies.

Macy's (the department store chain)classifies its clothing held for sale as

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

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

How are average cost and marginal cost computed?

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