Exam 2: Building Blocks of Managerial Accounting

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

What is the promotion of products and services known as?

A snow removal business would be classified as a

A company is deciding whether to purchase production equipment that can produce units more quickly than the current equipment. Which of the following costs would be relevant to its decision?

Chicago Steel's operating activities for the year are listed below. What is the cost of goods available for sale?

A ________ cost is always irrelevant.

Getting to school for your 8 a.m. class doesn't leave much time for breakfast, and you are quite hungry by the time class ends. It is a long walk to the cafeteria, the lines are long once you get there, and you find yourself having to decide between having breakfast and getting to your next class on time. Many of your friends have expressed the same problem. The administration has agreed to let you set up a table just outside the building where you will sell various snacks for $1 each. You have agreed to pay the administration $400 per month and salaries to your friends to run the business will be another $400 per month. It will cost you 60 cents each to buy the pre-packaged snacks. You believe you can sell 2,500 snack packs per month. a. What are the total fixed costs per month? b. What are the total variable costs per month? c. What is the fixed cost per snack pack? d. What is the variable cost per snack pack? e. What is the average cost per snack pack? f. What is the average profit margin per snack pack? g. Based on your analysis, should you start the snack pack business?

The activities in the value chain must take place in a specific order.

Before these materials are used to manufacture cabinets, a woodworker classifies lumber, paint, and glue as

The balance sheet of a service company has

Sydney's Barbecue manufactures barbecue equipment for consumers and businesses in the marketplace. The managerial accountant at Sydney's Barbecue reported the following data: What is the average manufacturing cost per unit at Sydney's Barbecue? (Round your answer)

A relevant cost in determining whether to take the train to Phoenix or fly to Phoenix would be

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

Controllable costs are those costs that the management has immediate control over such as depreciation on factory equipment.

Classify each of the following costs as direct or indirect as it relates to one Best Buy retail location: CFO salary, that Best Buy's sales associates, that Best Buy's property insurance, and the legal department for Best Buy.

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

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

Porches, Inc. sells lawn furniture. Selected financial information for the most recent year follows. Beginning merchandise inventory on January 1 was $33,700. Ending merchandise inventory on December 31 was $35,700. Purchases during the year were $92,900. Selling and administrative expenses were $75,500. Sales for year were $262,200. What was cost of goods sold?

Tuity Fruity Beverage Company's operating activities for the year are listed below. What is the cost of goods sold for the year?

Tall Timbers reports the following data for its first year of operation. What is the cost of goods sold?