Question 1

What was gross profit at Back Yards Inc.?

Accepted Answer

A) $(171,000) 
B) $156,000 
C) $161,000 
D) $182,000 
A) $(171,000) 
B) $156,000 
C) $161,000 
D) $182,000

Question 2

The owner of Spicy's Gourmet Popcorn is concerned because the stand has been averaging sales of only 7,500 cartons per month,the stand and staff can make 15,000 cartons of popcorn per month.The variable cost of each carton is $1.50.Monthly fixed costs are ( taxes,licenses,space rent and salaries)are $10,000.The owner believes he could sell 15,000 cartons per month if he cuts the sales price from $5.50 to $5.00 per carton.How much extra profit ( above the current level)would he generate if he decreased the sales price?

Accepted Answer

New profit = (15,000 × $5.00)-

Question 3

What is the total cost of research and development at Farm Fresh Dairy?

Accepted Answer

A) $84,000 
B) $155,000 
C) $88,000 
D) $239,000 
A) $84,000 
B) $155,000 
C) $88,000 
D) $239,000

Question 4

Irrelevant factors should be considered when making decisions.

Accepted Answer

A) True 
 B)False

Question 5

Inventoriable product costs consist of manufacturing overhead,direct labour and direct materials.

Accepted Answer

A) True 
 B)False

Question 6

H & R Block,an income tax preparation service,is what type of company?

Accepted Answer

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

Question 7

The total conversion costs for Bombardeer are

Accepted Answer

A) $2,285. 
B) $2,155. 
C) $2,565. 
D) $1,470. 
A) $2,285. 
B) $2,155. 
C) $2,565. 
D) $1,470.

Question 8

Collectively,all costs such as design,customer service,etc.are part of

Accepted Answer

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

Question 9

The owner of Fat Man's Sausage Cart is concerned because the stand has been averaging only 5,500 sausage sales per month,the stand and staff can make 7,000 sausage on a bun per month.The variable cost of each sausage ( buns,meat etc)is $3.50.Monthly fixed costs are ( taxes,licenses,space rent and salaries)are $10,000.The owner (Big Bob)believes he could sell 7,000 sausages per month if he cuts the sales price from $7.50 to $7.00 per sausage.How much extra profit ( above the current level)would he generate if he decreased the sales price?

Accepted Answer

New profit = (7,000 × $7.00)-

Question 10

Decision making is guided only by differential costs.

Accepted Answer

A) True 
 B)False

Question 11

Variable costs

Accepted Answer

A) are fixed in total as production levels change. 
B) are fixed per unit and vary in total as productions levels change. 
C) decrease per unit as production volume increases. 
D) vary per unit of output as production levels change. 
A) are fixed in total as production levels change. 
B) are fixed per unit and vary in total as productions levels change. 
C) decrease per unit as production volume increases. 
D) vary per unit of output as production levels change.

Question 12

Conversion costs consist of

Accepted Answer

A) direct labour and manufacturing overhead. 
B) direct materials and direct labour. 
C) direct materials and manufacturing overhead. 
D) direct materials,direct labour and manufacturing overhead. 
A) direct labour and manufacturing overhead. 
B) direct materials and direct labour. 
C) direct materials and manufacturing overhead. 
D) direct materials,direct labour and manufacturing overhead.

Question 13

Match between columns
                        Premises: Ready to sell inventory of manufacturers
Transform raw materials into finished products
Produce its' own inventory
Do not have inventory for resale
Typically have a single category of inventory
Partially completed items of manufacturers
Resell products they previously purchased ready-made from suppliers

Accepted Answer

The Answer of Manufacturing companies and Service companies and Finished is...

Question 14

Wal-Mart classifies its clothing held for sale as

Accepted Answer

A) finished goods inventory. 
B) raw materials inventory. 
C) work in process inventory. 
D) merchandise inventory. 
A) finished goods inventory. 
B) raw materials inventory. 
C) work in process inventory. 
D) merchandise inventory.

Question 15

Advertising expenses would be considered which part of the value chain?

Accepted Answer

A) Customer service 
B) Marketing 
C) Production 
D) Research and development 
A) Customer service 
B) Marketing 
C) Production 
D) Research and development

Question 16

A technical support hotline for customers would be considered which part of the value chain?

Accepted Answer

A) Customer service 
B) Design 
C) Distribution 
D) Marketing 
A) Customer service 
B) Design 
C) Distribution 
D) Marketing

Question 17

Match between columns
                        Premises: Sponsorship of a local youth ball team
Factory machine controller software
Delivery of products and services
Parts for monitors being manufactured
Depreciation expense on store fixtures
Cost of having raw materials delivered to the factory
Salaries for the engineers who developed a new process
Consultant fees for redesign of the company's billing system
Cost of repairing a product under warrantee
Purchase of printer supplies
Research on whether the store should expand their product line
Salaries of sales persons
Toll free line for customer orders
Assembly line workers' wages
Customer support hot line
Investigating a potential new process for producing a product
Rearrange the production process to accommodate new equipment
Payment to sponsor a racing team
Detailed engineering plans for products
Delivery expense to customers
Depreciation on manufacturing equipment
Rearranging the store layout
Cost of new robot to be used in the assembly plant
Cost of testing a new material for use in anexisting product
Architect's fee for designing a new factory building
Advertising on the local TV channel
Purchaæs of merchandise
Cost of having merchandise delivered to the store
Repairing a customer's purchase at no charge
Purolator charges for returning completed files to clients
Customer complaint department

Accepted Answer

The Answer of Distribution and Design and Production or purchases is...

Question 18

Homeco a start up manufacturing company's bookkeeper left suddenly leaving rather incomplete
accounting records for the last month of his employment.You have been hired to sort out the puzzle.Assume Homeco's raw materials inventory contains only direct materials.You have the following information available:
   
Find the following amounts:
A.Cost of goods sold in May.
B.Beginning raw materials inventory.
C.Ending finished goods inventory.

Accepted Answer

A.$33,500
B.$14,500
C.$34,400

Question 19

What are the total manufacturing costs to account for at Express Company?

Accepted Answer

A) $615,000 
B) $475,000 
C) $295,000 
D) $529,000 
A) $615,000 
B) $475,000 
C) $295,000 
D) $529,000

Question 20

Which statement describes direct materials in a manufacturing setting?

Accepted Answer

A) Direct materials are used to determine total inventoriable product costs. 
B) Direct materials are used to determine total manufacturing overhead. 
C) Direct materials cannot be separately and conveniently traced. 
D) Direct materials do not become part of the finished product. 
A) Direct materials are used to determine total inventoriable product costs. 
B) Direct materials are used to determine total manufacturing overhead. 
C) Direct materials cannot be separately and conveniently traced. 
D) Direct materials do not become part of the finished product.

What was gross profit at Back Yards Inc.?

What is the total cost of research and development at Farm Fresh Dairy?

Irrelevant factors should be considered when making decisions.

Inventoriable product costs consist of manufacturing overhead,direct labour and direct materials.

H & R Block,an income tax preparation service,is what type of company?

The total conversion costs for Bombardeer are

Collectively,all costs such as design,customer service,etc.are part of

Decision making is guided only by differential costs.

Variable costs

Conversion costs consist of

Wal-Mart classifies its clothing held for sale as

Advertising expenses would be considered which part of the value chain?

A technical support hotline for customers would be considered which part of the value chain?

What are the total manufacturing costs to account for at Express Company?

Which statement describes direct materials in a manufacturing setting?

Introduction to Managerial Accounting

Job Costing

Activity Based Costing

Process Costing

Cost Behaviour

Cost-Volume-Profit Analysis

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Filters

Exam 2: Building Blocks of Managerial Accounting

What was gross profit at Back Yards Inc.?

What is the total cost of research and development at Farm Fresh Dairy?

Irrelevant factors should be considered when making decisions.

Inventoriable product costs consist of manufacturing overhead,direct labour and direct materials.

H & R Block,an income tax preparation service,is what type of company?

The total conversion costs for Bombardeer are

Collectively,all costs such as design,customer service,etc.are part of

Decision making is guided only by differential costs.

Variable costs

Conversion costs consist of

Wal-Mart classifies its clothing held for sale as

Advertising expenses would be considered which part of the value chain?

A technical support hotline for customers would be considered which part of the value chain?

What are the total manufacturing costs to account for at Express Company?

Which statement describes direct materials in a manufacturing setting?

Introduction to Managerial Accounting

Job Costing

Activity Based Costing

Process Costing

Cost Behaviour

Cost-Volume-Profit Analysis

Short-Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Filters