Question 1

Company X sells widgets. The following information summarizes the company's operating activities for the year:   What are total operating expenses?

Accepted Answer

A) $3800 
B) $2600 
C) $4600 
D) $5500 
A) $3800 
B) $2600 
C) $4600 
D) $5500

Question 2

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

Accepted Answer

A) $281,250 
B) $445,000 
C) $452,700 
D) $486,250 
A) $281,250 
B) $445,000 
C) $452,700 
D) $486,250

Question 3

Explain the difference between raw materials inventory, work in process inventory, and finished goods inventory.

Accepted Answer

Raw materials inventory includes all mat

Question 4

Product costs and period costs receive similar treatment when presented in the financial statements.

Accepted Answer

A) True 
 B)False

Question 5

You are trying to decide whether or not to sell back your accounting textbook at the end of the class. The cost you paid for the book is not relevant to your decision.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements is correct concerning product costs?

Accepted Answer

A) Product costs are expensed in the period the related product is sold. 
B) Product costs are expensed in the period incurred. 
C) Product costs are shown with operating expenses on the income statement. 
D) Product costs are shown with current liabilities on the balance sheet. 
A) Product costs are expensed in the period the related product is sold. 
B) Product costs are expensed in the period incurred. 
C) Product costs are shown with operating expenses on the income statement. 
D) Product costs are shown with current liabilities on the balance sheet.

Question 7

Describe a company that has some elements of all three types of companies. It is part service company, part manufacturer, and part merchandiser.

Accepted Answer

Many restaurants fall into this category

Question 8

Lucas Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July:   What is the total cost for the customer service category of the value chain?

Accepted Answer

A) $2400 
B) $34,100 
C) $80,800 
D) $10,800 
A) $2400 
B) $34,100 
C) $80,800 
D) $10,800

Question 9

All of the following are period costs except

Accepted Answer

A) distribution expenses. 
B) direct labor expenses. 
C) marketing expenses. 
D) research and development expenses. 
A) distribution expenses. 
B) direct labor expenses. 
C) marketing expenses. 
D) research and development expenses.

Question 10

Sales minus cost of goods sold equals gross profit.

Accepted Answer

A) True 
 B)False

Question 11

Differentiate between relevant and irrelevant costs and give an example using both.

Accepted Answer

When making a decision, those costs that

Question 12

Merchandising companies include both wholesalers and retailers.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following items could be an example of a cost object?

Accepted Answer

A) A manufacturing plant 
B) An international plant 
C) The accounting department 
D) All of the above are examples of potential cost objects. 
A) A manufacturing plant 
B) An international plant 
C) The accounting department 
D) All of the above are examples of potential cost objects.

Question 14

Service companies must carry a large amount of inventory to meet consumer demand.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following represents a sunk cost?

Accepted Answer

A) A historical cost that is always relevant 
B) A historical cost that is never relevant 
C) An outlay expected to be incurred in the future 
D) A cost that is relevant to any decision 
A) A historical cost that is always relevant 
B) A historical cost that is never relevant 
C) An outlay expected to be incurred in the future 
D) A cost that is relevant to any decision

Question 16

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

Accepted Answer

A) $174,500. 
B) $81,100. 
C) $152,100. 
D) $222,300. 
A) $174,500. 
B) $81,100. 
C) $152,100. 
D) $222,300.

Question 17

Selected information regarding a company's most recent quarter follows (all data in thousands).   What was the beginning finished goods inventory?

Accepted Answer

A) $2340 
B) $440 
C) $560 
D) $2460 
A) $2340 
B) $440 
C) $560 
D) $2460

Question 18

Delivery expenses are charged to which of the following areas?

Accepted Answer

A) Distribution 
B) Customer service 
C) Production or purchases 
D) Marketing 
A) Distribution 
B) Customer service 
C) Production or purchases 
D) Marketing

Question 19

Sunk costs are irrelevant to the decision making process.

Accepted Answer

A) True 
 B)False

Question 20

Only manufacturing companies have finished goods inventory.

Accepted Answer

A) True 
 B)False

Company X sells widgets. The following information summarizes the company's operating activities for the year: What are total operating expenses?

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

Explain the difference between raw materials inventory, work in process inventory, and finished goods inventory.

Product costs and period costs receive similar treatment when presented in the financial statements.

You are trying to decide whether or not to sell back your accounting textbook at the end of the class. The cost you paid for the book is not relevant to your decision.

Which of the following statements is correct concerning product costs?

Describe a company that has some elements of all three types of companies. It is part service company, part manufacturer, and part merchandiser.

Lucas Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July: What is the total cost for the customer service category of the value chain?

All of the following are period costs except

Sales minus cost of goods sold equals gross profit.

Differentiate between relevant and irrelevant costs and give an example using both.

Merchandising companies include both wholesalers and retailers.

Which of the following items could be an example of a cost object?

Service companies must carry a large amount of inventory to meet consumer demand.

Which of the following represents a sunk cost?

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the beginning finished goods inventory?

Delivery expenses are charged to which of the following areas?

Sunk costs are irrelevant to the decision making process.

Only manufacturing companies have finished goods inventory.

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 are total operating expenses?

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

Explain the difference between raw materials inventory, work in process inventory, and finished goods inventory.

Product costs and period costs receive similar treatment when presented in the financial statements.

You are trying to decide whether or not to sell back your accounting textbook at the end of the class. The cost you paid for the book is not relevant to your decision.

Which of the following statements is correct concerning product costs?

Describe a company that has some elements of all three types of companies. It is part service company, part manufacturer, and part merchandiser.

Lucas Family Orange Groves processes a variety of fresh juices. The company has the following expenses for July: What is the total cost for the customer service category of the value chain?

All of the following are period costs except

Sales minus cost of goods sold equals gross profit.

Differentiate between relevant and irrelevant costs and give an example using both.

Merchandising companies include both wholesalers and retailers.

Which of the following items could be an example of a cost object?

Service companies must carry a large amount of inventory to meet consumer demand.

Which of the following represents a sunk cost?

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the beginning finished goods inventory?

Delivery expenses are charged to which of the following areas?

Sunk costs are irrelevant to the decision making process.

Only manufacturing companies have finished goods inventory.

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