Exam 2: Building Blocks of Managerial Accounting

Variable costs per unit decrease as production volume increases.

Direct materials for a company were $501,000; manufacturing overhead was $250,600; and direct labor was $770,300. Conversion costs would total

Kramer Manufacturing produces blenders. Its total fixed costs are $30,000. Its variable costs are $55.00 per blender. As production of blenders increases (within the relevant range), fixed costs will

Which of the following is an example of direct labor?

If the Ford Focus is the cost object, classify each of the following costs as indirect or direct, respectively: property taxes for the manufacturing plant, engines for the cars, and janitor wages for the factory.

What is the cost of making one more unit called?

On the line in front of each statement, enter the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all. ________ has a single category of inventory ________ resells products previously purchased ready-made from a supplier ________ does not sell inventory as a way to earn profit ________ produces its own inventory ________ transforms raw materials into a new finished product ________ completed goods that have not been sold ________ partially completed items of manufacturers ________ steel, glass, tires, upholstery, and fabric that Toyota uses to manufacture products

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

All of the following are considered fixed costs except

The ________ element in the value chain would contain inventoriable costs for a manufacturer.

Factory property taxes, factory property insurance, and depreciation on current equipment are all examples of uncontrollable costs.

Fit Apparel Company reports the following data for its first year of operation. What is the cost of goods sold?

Which of the following is an example of a fixed cost for a manufacturer?

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

Which of the following value chain elements is associated with the costs of shipping inventory to the retail outlet in a merchandising company?

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

A(n)________ cost is one whose total amount changes in direct proportion to a change in volume.

Differentiate between fixed and variable costs and give an example of each.

Research and development is needed to improve products and to design new products.

Which type of company has three categories of inventory?