Exam 2: Building Blocks of Managerial Accounting

Which of the following costs include all of the costs associated with production of a product?

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars. All of the following costs would be relevant to its decision except

A ________ company's balance sheet reports just one inventory called "Inventory."

A salesperson's salary would be classified as ________ when determining the cost of a manufactured product.

The value chain is used by

ABC Company makes wooden furniture. Identify each of the following as either an inventoriable product cost or a period cost. If it is an inventoriable product cost, classify it as direct materials, direct labor, or manufacturing overhead. A. ________ Insurance on the plant building B. ________ Cost of shipping the furniture to the customers C. ________ Assembly line workers' wages D. ________ Depreciation on plant equipment E. ________ Salesmen's salaries F. ________ Cost of various types of wood G. ________ Insurance on delivery trucks H. ________ Plant forklift operator's salary

Period costs are generally also known as

Indirect manufacturing costs should be included in manufacturing overhead.

Fixed costs vary in total over a wide range of activity levels.

Stallard Corporation is analyzing its controllable costs to see where it can save money in the coming year. All of the following costs except ________ should be analyzed.

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

Tuity Fruity Beverage Company's operating activities for the year are listed below. What is the gross profit for the year?

A merchandiser's purchases are equivalent to a manufacturer's

Classify each of the following business costs into one of the six value chain elements. A. cost of a commercial during a TV program B. cost of shipping goods to customers C. costs associated with repairing products under warranty D. costs of developing a new product E. cost of making a prototype of a new product F. cost of labor for machine operator in factory

Porches, Inc. sells lawn furniture. Selected financial information for the most recent year is as follows: Beginning merchandise inventory on January 1 was $33,300. Ending merchandise inventory on December 31 was $35,000. Purchases during the year were $92,300. Selling and administrative expenses were $75,900. Sales for year were $262,700. What was operating income for the year?

Youngstown Rubber reports the following data for its first year of operation. What are the total manufacturing costs to account for?

Which type of company makes up the largest sector of the United States economy?

Receipt of materials is part of the firm's value chain.

Winner's Sporting Equipment manufactures sporting goods. Selected costs from the past year include: Product costs for Winner's Sporting Equipment totaled

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