Question 1

An example of a sunk cost is

Accepted Answer

A) the purchase price of new equipment being considered for purchase. 
B) maintenance costs of new equipment. 
C) the cost of installation of the new equipment. 
D) the purchase price of the old equipment. 
A) the purchase price of new equipment being considered for purchase. 
B) maintenance costs of new equipment. 
C) the cost of installation of the new equipment. 
D) the purchase price of the old equipment.

Question 2

Which of the following would not be considered a product cost of a manufacturer?

Accepted Answer

A) Direct labor 
B) Direct materials 
C) Manufacturing overhead 
D) Freight out 
A) Direct labor 
B) Direct materials 
C) Manufacturing overhead 
D) Freight out

Question 3

How do total variable costs behave?

Accepted Answer

A) They decrease as production decreases. 
B) They remain the same throughout production levels within the relevant range. 
C) They decrease as production increases. 
D) They increase as production decreases. 
A) They decrease as production decreases. 
B) They remain the same throughout production levels within the relevant range. 
C) They decrease as production increases. 
D) They increase as production decreases.

Question 4

Indirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?

Accepted Answer

A) Direct labor 
B) Direct materials 
C) Manufacturing overhead 
D) Prime costs 
A) Direct labor 
B) Direct materials 
C) Manufacturing overhead 
D) Prime costs

Question 5

The Seashell Factory sells beach goods to tourists. The following information summarizes the company's operating expenses for the year:   What is gross profit?

Accepted Answer

A) $62,100 
B) $34,700 
C) $142,700 
D) $89,500 
A) $62,100 
B) $34,700 
C) $142,700 
D) $89,500

Question 6

Which of the following is an example of indirect labor in a manufacturing plant?

Accepted Answer

A) Chief financial officer 
B) Machine operators 
C) Salespersons 
D) Plant managers 
A) Chief financial officer 
B) Machine operators 
C) Salespersons 
D) Plant managers

Question 7

Controllable costs include all the following except

Accepted Answer

A) employee development. 
B) research and development. 
C) real estate taxes of the corporate headquarters building. 
D) advertising. 
A) employee development. 
B) research and development. 
C) real estate taxes of the corporate headquarters building. 
D) advertising.

Question 8

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) $130 
B) $530 
C) $1540 
D) $870 
A) $130 
B) $530 
C) $1540 
D) $870

Question 9

Inventoriable product costs consist of manufacturing overhead, direct labor and direct materials.

Accepted Answer

A) True 
 B)False

Question 10

All of the following relate to part of the value chain for a clothing company except

Accepted Answer

A) cost of advertising new products. 
B) administrative costs. 
C) cost of shipping products to retailers. 
D) salaries of clothing designers. 
A) cost of advertising new products. 
B) administrative costs. 
C) cost of shipping products to retailers. 
D) salaries of clothing designers.

Question 11

Which of the following costs would be considered variable?

Accepted Answer

A) direct materials 
B) sales commission 
C) hourly wages of employees 
D) all of the above 
A) direct materials 
B) sales commission 
C) hourly wages of employees 
D) all of the above

Question 12

Lighthouse Merchandise Group is a global operation that sells lighthouse merchandise to consumers and groups in the marketplace. The managerial accountant reported the following information:
   Compute the cost of goods available for sale at Lighthouse Merchandise Group. What is the cost of goods sold?

Accepted Answer

To compute the cost of goods a

Question 13

Which of the following activities is not included in the value chain?

Accepted Answer

A) Reporting 
B) Design 
C) Production 
D) Customer service 
A) Reporting 
B) Design 
C) Production 
D) Customer service

Question 14

Selected information regarding a company's most recent quarter follows (all data in thousands).   What was the ending raw materials inventory?

Accepted Answer

A) $470 
B) $780 
C) $240 
D) $890 
A) $470 
B) $780 
C) $240 
D) $890

Question 15

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

Accepted Answer

A) $268,100 
B) $188,900 
C) $197,800 
D) $125,700 
A) $268,100 
B) $188,900 
C) $197,800 
D) $125,700

Question 16

Selected information regarding a company's most recent quarter follows (all data in thousands).   What was manufacturing overhead for the quarter?

Accepted Answer

A) $520 
B) $100 
C) $860 
D) $140 
A) $520 
B) $100 
C) $860 
D) $140

Question 17

Name and briefly describe the activities that make up the value chain.

Accepted Answer

The value chain consists of research and

Question 18

How do fixed costs react in total and on a per unit basis?

Accepted Answer

A) Fixed costs remain constant in total and decrease per unit as production increases. 
B) Fixed costs remain constant in total and on a per unit basis as production increases. 
C) Fixed costs increase in total as production increases and remain constant on a per unit basis. 
D) Fixed costs increase in total and on a per until basis. 
A) Fixed costs remain constant in total and decrease per unit as production increases. 
B) Fixed costs remain constant in total and on a per unit basis as production increases. 
C) Fixed costs increase in total as production increases and remain constant on a per unit basis. 
D) Fixed costs increase in total and on a per until basis.

An example of a sunk cost is

Which of the following would not be considered a product cost of a manufacturer?

How do total variable costs behave?

Indirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?

The Seashell Factory sells beach goods to tourists. The following information summarizes the company's operating expenses for the year: What is gross profit?

Which of the following is an example of indirect labor in a manufacturing plant?

Controllable costs include all the following except

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?

Inventoriable product costs consist of manufacturing overhead, direct labor and direct materials.

All of the following relate to part of the value chain for a clothing company except

Which of the following costs would be considered variable?

Lighthouse Merchandise Group is a global operation that sells lighthouse merchandise to consumers and groups in the marketplace. The managerial accountant reported the following information: Compute the cost of goods available for sale at Lighthouse Merchandise Group. What is the cost of goods sold?

Which of the following activities is not included in the value chain?

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was manufacturing overhead for the quarter?

Name and briefly describe the activities that make up the value chain.

How do fixed costs react in total and on a per unit basis?

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

An example of a sunk cost is

Which of the following would not be considered a product cost of a manufacturer?

How do total variable costs behave?

Indirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?

The Seashell Factory sells beach goods to tourists. The following information summarizes the company's operating expenses for the year: What is gross profit?

Which of the following is an example of indirect labor in a manufacturing plant?

Controllable costs include all the following except

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?

Inventoriable product costs consist of manufacturing overhead, direct labor and direct materials.

All of the following relate to part of the value chain for a clothing company except

Which of the following costs would be considered variable?

Which of the following activities is not included in the value chain?

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was manufacturing overhead for the quarter?

Name and briefly describe the activities that make up the value chain.

How do fixed costs react in total and on a per unit basis?

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