Exam 2: Building Blocks of Managerial Accounting

Prime costs consist of:

Irrelevant factors should be considered when making decisions.

A restaurant is facing a decision about whether it should bake its own dinner rolls or whether it should continue to purchase the dinner rolls from a local bakery.Which of the following costs would be relevant to its decision?

What type of company resells products it previously purchased ready-made from suppliers?

How would Honda classify its partially completed vehicles?

Farm Fresh Dairy provided the following expense information for May: Assembly-line warkers' wages \ 72,000 Caps for milk bottles 2,000 Reconfigurig the assembly line 155,000 Custamer support hotline 8,000 Delivery expenses 17,000 Depreciation an factory equipment 81,000 Plastic milk bottles 52,000 Salaries of salespegple 63,000 Salaries of research scientists 84,000 Custamer toll-free order line 4,000 -What is the total cost for the design category of the value chain?

Backyards,Inc.,sells lawn furniture.Selected financial information for the most recent year follows. Beginning merchandise inventory on January 1 was $32,000. Ending merchandise inventory on December 31 was $37,000. Purchases during the year were $101,000. Selling and administrative expenses were $75,000. Sales for year were $257,000. - What was the value of goods available for sale?

Uniquely Me Shoppe,a clothing retailer,had the following total costs as grouped by value chain element: Research and development \ 53,000 Design \ 17,000 Purchases \ 99,000 Marketing \ 42,000 Distribution \ 68,000 Custumer service \ 27,000 -What were the company's period costs?

When deciding to buy a new computer,all of the following should be considered EXCEPT for the:

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

A company has monthly fixed costs of $112,000.The variable costs are $5.00 per unit.If the sales price of a unit is $20.00 and we sell 8,000 units,the company's average fixed costs per unit will be:

Which of the following items would NOT be found in raw materials inventory for a furniture manufacturer?

The financial statements of a merchandiser are more complex than those of a manufacturer.

A company has monthly fixed costs of $112,000.The variable costs are $5.00 per unit.If the sales price of a unit is $20.00 and we sell 8,000 units,the total sales revenue will be:

An inventoriable cost could be the cost of the marketing and distribution of a product.

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

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. A. Direct costs E. Variable costs B. Marginal cost F. Indirect cost C. Average cost G. Surk cost D. Cunversion costs H. Differential cost ___ The total cost divided by the total volume ___ The difference in cost between two alternative courses of action ___ The combination of direct labor and manufacturing overhead costs ___ The cost of producing one more unit ___ Costs that can be traced to the cost object

The value chain helps companies control costs of products only.

When determining the cost of a manufactured product,a factory janitor's wages would be classified as:

Service companies have the simplest accounting with regard to the income statement.