Question 1

Company X sells widgets. The following information summarizes the company's operating activities for the year:   What is cost of goods sold?

Accepted Answer

A) $9300 
B) $6500 
C) $8100 
D) $13,700 
A) $9300 
B) $6500 
C) $8100 
D) $13,700

Question 2

Happy Feet Running Company manufactures running shoes and has the following costs during the past month:   What are prime costs for Happy Feet Running Company for the month?

Accepted Answer

A) $124,250 
B) $116,250 
C) $91,250 
D) $85,000 
A) $124,250 
B) $116,250 
C) $91,250 
D) $85,000

Question 3

The cost of lighting the factory would be classified as ________ when determining the cost of a manufactured product.

Accepted Answer

A) an indirect cost 
B) a direct cost 
C) a period cost 
D) none of the above 
A) an indirect cost 
B) a direct cost 
C) a period cost 
D) none of the above

Question 4

For a manufacturer, beginning work in process would be equal to

Accepted Answer

A) manufacturing costs incurred in the period - ending work in process inventory. 
B) cost of goods manufactured - ending work in process inventory + manufacturing costs incurred in the period. 
C) ending work in process inventory + manufacturing costs incurred in the period. 
D) cost of goods manufactured + ending work in process inventory - manufacturing costs incurred in the period. 
A) manufacturing costs incurred in the period - ending work in process inventory. 
B) cost of goods manufactured - ending work in process inventory + manufacturing costs incurred in the period. 
C) ending work in process inventory + manufacturing costs incurred in the period. 
D) cost of goods manufactured + ending work in process inventory - manufacturing costs incurred in the period.

Question 5

Chilton Corporation is analyzing its controllable costs to see where it can save money. Which of the following costs should it ignore during this analysis?

Accepted Answer

A) employee development 
B) factory property insurance 
C) employee bonuses 
D) advertising 
A) employee development 
B) factory property insurance 
C) employee bonuses 
D) advertising

Question 6

Pink Ribbon Shoppe, a clothing retailer, had the following total costs as grouped by value chain element:   What were the company's period costs?

Accepted Answer

A) $206,400 
B) $278,600 
C) $100,300 
D) $135,500 
A) $206,400 
B) $278,600 
C) $100,300 
D) $135,500

Question 7

Collectively, all costs such as distribution, marketing, and design are part of

Accepted Answer

A) downstream activities. 
B) fixed costs. 
C) the value chain. 
D) manufacturing costs. 
A) downstream activities. 
B) fixed costs. 
C) the value chain. 
D) manufacturing costs.

Question 8

Cost of goods manufactured reflects

Accepted Answer

A) goods sold during the period. 
B) goods completed during the period. 
C) goods still in the factory at the end of the period. 
D) goods not yet started at the end of the period. 
A) goods sold during the period. 
B) goods completed during the period. 
C) goods still in the factory at the end of the period. 
D) goods not yet started at the end of the period.

Question 9

Page's sells books. The following information summarizes the company's operating expenses for the year:   What is cost of goods available for sale?

Accepted Answer

A) $117,200 
B) $65,500 
C) $120,200 
D) $102,200 
A) $117,200 
B) $65,500 
C) $120,200 
D) $102,200

Question 10

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

Accepted Answer

A) $140,900 
B) $153,300 
C) $80,900 
D) $134,800 
A) $140,900 
B) $153,300 
C) $80,900 
D) $134,800

Question 11

An example of an uncontrollable cost is

Accepted Answer

A) property taxes. 
B) property insurance. 
C) depreciation on factory equipment. 
D) all of the above. 
A) property taxes. 
B) property insurance. 
C) depreciation on factory equipment. 
D) all of the above.

Question 12

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

Accepted Answer

A) $82,800 
B) $16,400 
C) $73,600 
D) $10,300 
A) $82,800 
B) $16,400 
C) $73,600 
D) $10,300

Question 13

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?

Accepted Answer

A) The cost of the new equipment 
B) The salary of the factory manager 
C) The cost of raw materials 
D) The original purchase price of the current machinery 
A) The cost of the new equipment 
B) The salary of the factory manager 
C) The cost of raw materials 
D) The original purchase price of the current machinery

Question 14

The only difference in the balance sheets of various types of businesses (for example, manufacturing vs. service)is

Accepted Answer

A) current liabilities. 
B) current assets. 
C) investments. 
D) equity. 
A) current liabilities. 
B) current assets. 
C) investments. 
D) equity.

Question 15

Harper Inc. has fixed costs of $600,000 when it produces 300,000 units. Its total variable costs are $150,000. When Harper Inc. produces 400,000 units, its variable cost per unit will be

Accepted Answer

A) $2.00. 
B) $0.38. 
C) $2.50. 
D) $0.50. 
A) $2.00. 
B) $0.38. 
C) $2.50. 
D) $0.50.

Question 16

A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, fixed costs in total will

Accepted Answer

A) double. 
B) remain the same. 
C) be cut in half. 
D) be none of the above. 
A) double. 
B) remain the same. 
C) be cut in half. 
D) be none of the above.

Question 17

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

Accepted Answer

A) $1,400,300 
B) $750,200 
C) $50,100 
D) $1,751,100 
A) $1,400,300 
B) $750,200 
C) $50,100 
D) $1,751,100

Question 18

Enter the letter of the type of each company category on the line in front of each statement. Letters may be used more than once or not at all.
A. service company
B. merchandising company
C. manufacturing company
________ generally has no or minimal inventory
________ has three types of inventory
________ has one class of inventory only
________ Ford Motor Company is an example of this company category
________ Wal-Mart is an example of this company category

Accepted Answer

The answer of Enter the letter of the type of...

Question 19

Average cost can be used to calculate total cost at a new level of production.

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 cost of goods sold?

Accepted Answer

A) $1080 
B) $1290 
C) $750 
D) $1280 
A) $1080 
B) $1290 
C) $750 
D) $1280

Company X sells widgets. The following information summarizes the company's operating activities for the year: What is cost of goods sold?

Happy Feet Running Company manufactures running shoes and has the following costs during the past month: What are prime costs for Happy Feet Running Company for the month?

The cost of lighting the factory would be classified as ________ when determining the cost of a manufactured product.

For a manufacturer, beginning work in process would be equal to

Chilton Corporation is analyzing its controllable costs to see where it can save money. Which of the following costs should it ignore during this analysis?

Pink Ribbon Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: What were the company's period costs?

Collectively, all costs such as distribution, marketing, and design are part of

Cost of goods manufactured reflects

Page's sells books. The following information summarizes the company's operating expenses for the year: What is cost of goods available for sale?

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

An example of an uncontrollable cost is

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

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?

The only difference in the balance sheets of various types of businesses (for example, manufacturing vs. service)is

Harper Inc. has fixed costs of $600,000 when it produces 300,000 units. Its total variable costs are $150,000. When Harper Inc. produces 400,000 units, its variable cost per unit will be

A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, fixed costs in total will

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

Average cost can be used to calculate total cost at a new level of production.

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). What was cost of goods sold?

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

Company X sells widgets. The following information summarizes the company's operating activities for the year: What is cost of goods sold?

Happy Feet Running Company manufactures running shoes and has the following costs during the past month: What are prime costs for Happy Feet Running Company for the month?

The cost of lighting the factory would be classified as ________ when determining the cost of a manufactured product.

For a manufacturer, beginning work in process would be equal to

Chilton Corporation is analyzing its controllable costs to see where it can save money. Which of the following costs should it ignore during this analysis?

Pink Ribbon Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: What were the company's period costs?

Collectively, all costs such as distribution, marketing, and design are part of

Cost of goods manufactured reflects

Page's sells books. The following information summarizes the company's operating expenses for the year: What is cost of goods available for sale?

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

An example of an uncontrollable cost is

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

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?

The only difference in the balance sheets of various types of businesses (for example, manufacturing vs. service)is

Harper Inc. has fixed costs of $600,000 when it produces 300,000 units. Its total variable costs are $150,000. When Harper Inc. produces 400,000 units, its variable cost per unit will be

A company has fixed costs of $60,000 per month. If sales double from 6,000 to 12,000 units during the month, fixed costs in total will

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

Average cost can be used to calculate total cost at a new level of production.

Selected financial information for Greek Food Producers is presented in the following table (000s omitted). What was cost of goods sold?

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