Question 1

Selected information regarding a company's most recent quarter follows (all data in thousands).   What was the ending raw materials inventory?

Accepted Answer

A) $760 
B) $450 
C) $50 
D) $330 
A) $760 
B) $450 
C) $50 
D) $330

Question 2

Direct costs can be traced to specific units.

Accepted Answer

A) True 
 B)False

Question 3

Costs can be either direct or indirect, depending upon the cost object.

Accepted Answer

A) True 
 B)False

Question 4

Direct materials used is the same thing as raw materials.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

Accepted Answer

A) Plant supervisor salary 
B) Machinery depreciation in the factory 
C) Plant utilities 
D) Cost of the automobile engines 
A) Plant supervisor salary 
B) Machinery depreciation in the factory 
C) Plant utilities 
D) Cost of the automobile engines

Question 6

Schlabig & Associates, a public accounting firm that provides business consulting to a consumer, is what type of company?

Accepted Answer

A) Manufacturer 
B) Retailer 
C) Service 
D) Wholesaler 
A) Manufacturer 
B) Retailer 
C) Service 
D) Wholesaler

Question 7

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

Accepted Answer

A) $466,200 
B) $60,900 
C) $305,300 
D) $202,700 
A) $466,200 
B) $60,900 
C) $305,300 
D) $202,700

Question 8

Place the letter for the appropriate value chain activity on the line in front of each item. Letters may be used more than once or not at all. Assume a manufacturer.
   ________ depreciation expense on equipment in factory
________ delivery expense
________ toll free line for customer orders
________ customer support hot line
________ assembly line workers' wages

Accepted Answer

The answer of Place the letter for the appropriate value...

Question 9

An example of a fixed cost for a manufacturer would be which of the following?

Accepted Answer

A) Sales commissions 
B) Salary of plant manager 
C) Direct materials 
D) Delivery costs 
A) Sales commissions 
B) Salary of plant manager 
C) Direct materials 
D) Delivery costs

Question 10

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

Accepted Answer

A) $82,350 
B) $50,025 
C) $43,775 
D) $68,775 
A) $82,350 
B) $50,025 
C) $43,775 
D) $68,775

Question 11

Label each item below as relevant or irrelevant in making a decision.
A. ________ cost of insurance on a new vehicle when evaluating purchase of new vehicle
B. ________ cost of roof repair made on rental property last year when evaluating sale of rental property
C. ________ original cost of old equipment that is being evaluated for replacement
D. ________ cost of new equipment that is under evaluation to replace used equipment
E. ________ accumulated depreciation on old equipment being evaluated for replacement
F. ________ cost of previous year's insurance policy on old equipment being evaluated for replacement

Accepted Answer

A. relevant
B. irrel

Question 12

Indirect costs cannot be traced to the cost objects, so they are allocated.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) $365,100 
B) $455,800 
C) $752,000 
D) $520,900 
A) $365,100 
B) $455,800 
C) $752,000 
D) $520,900

Question 14

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

Accepted Answer

A) $70,700 
B) $41,200 
C) $85,500 
D) $58,000 
A) $70,700 
B) $41,200 
C) $85,500 
D) $58,000

Question 15

All of the following would be considered a direct material for a kitchen cabinet except

Accepted Answer

A) wood. 
B) stain. 
C) sand paper. 
D) hinges. 
A) wood. 
B) stain. 
C) sand paper. 
D) hinges.

Question 16

Challenge Tennis & Recreation's operating activities for the year are listed below.   What is the cost of goods sold for the year?

Accepted Answer

A) $201,900 
B) $163,900 
C) $174,000 
D) $97,200 
A) $201,900 
B) $163,900 
C) $174,000 
D) $97,200

Question 17

A company produces toy airplanes at a variable cost of $24 per toy. If 7090 toys are produced at a total variable cost of $170,160, the total variable cost at 4540 toys will be

Accepted Answer

A) $170,160. 
B) $24. 
C) $108,960. 
D) $279,120. 
A) $170,160. 
B) $24. 
C) $108,960. 
D) $279,120.

Question 18

Place the value chain elements in the correct order by numbering them from 1 to 6.
________ Design
________ Customer Service
________ Marketing
________ Research and Development
________ Distribution
________ Production or Purchases

Accepted Answer

The answer of Place the value chain elements in the...

Question 19

Differential cost is the difference in cost between two alternatives.

Accepted Answer

A) True 
 B)False

Question 20

Fit Apparel Company reports the following data for its first year of operation.   What are the total manufacturing costs to account for?

Accepted Answer

A) $650,700 
B) $836,800 
C) $246,100 
D) $580,000 
A) $650,700 
B) $836,800 
C) $246,100 
D) $580,000

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

Direct costs can be traced to specific units.

Costs can be either direct or indirect, depending upon the cost object.

Direct materials used is the same thing as raw materials.

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

Schlabig & Associates, a public accounting firm that provides business consulting to a consumer, is what type of company?

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

An example of a fixed cost for a manufacturer would be which of the following?

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

Indirect costs cannot be traced to the cost objects, so they are allocated.

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

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

All of the following would be considered a direct material for a kitchen cabinet except

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods sold for the year?

A company produces toy airplanes at a variable cost of $24 per toy. If 7090 toys are produced at a total variable cost of $170,160, the total variable cost at 4540 toys will be

Place the value chain elements in the correct order by numbering them from 1 to 6. Design Customer Service Marketing Research and Development Distribution Production or Purchases

Differential cost is the difference in cost between two alternatives.

Fit Apparel Company reports the following data for its first year of operation. What are the total manufacturing costs to account for?

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

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

Direct costs can be traced to specific units.

Costs can be either direct or indirect, depending upon the cost object.

Direct materials used is the same thing as raw materials.

Which of the following is not an example of an indirect cost incurred in manufacturing automobiles?

Schlabig & Associates, a public accounting firm that provides business consulting to a consumer, is what type of company?

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

An example of a fixed cost for a manufacturer would be which of the following?

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

Indirect costs cannot be traced to the cost objects, so they are allocated.

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

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

All of the following would be considered a direct material for a kitchen cabinet except

Challenge Tennis & Recreation's operating activities for the year are listed below. What is the cost of goods sold for the year?

A company produces toy airplanes at a variable cost of $24 per toy. If 7090 toys are produced at a total variable cost of $170,160, the total variable cost at 4540 toys will be

Place the value chain elements in the correct order by numbering them from 1 to 6. ________ Design ________ Customer Service ________ Marketing ________ Research and Development ________ Distribution ________ Production or Purchases

Differential cost is the difference in cost between two alternatives.

Fit Apparel Company reports the following data for its first year of operation. What are the total manufacturing costs to account for?

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

Place the value chain elements in the correct order by numbering them from 1 to 6. Design Customer Service Marketing Research and Development Distribution Production or Purchases