Question 1

For a manufactured product,indirect materials and indirect labor are:

Accepted Answer

A) overhead and period costs. 
B) overhead and product costs. 
C) operating and period costs. 
D) operating and product costs. 
A) overhead and period costs. 
B) overhead and product costs. 
C) operating and period costs. 
D) operating and product costs.

Question 2

Retailers sell their products to other wholesalers.

Accepted Answer

A) True 
 B)False

Question 3

Comfy Furniture Company manufactures furniture at its Akron,Ohio,factory.Some of its costs from the past year include: $\begin{array}{|l|cc|}
\hline \text { Depreciation on sales office } & \$  11,000 \
\hline \text { Depreciation on factory equipment } & \$  16,000 \
\hline \text { Factory supervisor salary } & \$  52,500 \
\hline \text { Sales commissions } & \$  23,000 \
\hline \text { Lubricants used in factory equipment } & \$  3,000 \
\hline \text { Insurance costs for factory } & \$ 21,000 \
\hline \text { Wages paid to maintenance workers } & \$  115,000 \
\hline \text { Fabric used to upholster furniture } & \$  7,000 \
\hline \text { Freight-in (on raw materials) } & \$ 2,500 \
\hline \text { Costs of delivery to customers } & \$  9,000 \
\hline \text { Wages paid to assembly-line workers } & \$  132,500 \
\hline \text { Lumber used to build product } & \$  72,000 \
\hline \text { Utilities in factory } & \$ 44,500 \
\hline \text { Utilities in sales office } &\$ 26,500 \
\hline
\end{array}$ 
-Direct labor costs for Comfy Furniture Company totaled:

Accepted Answer

A) $ 300,000. 
B) $ 132,500. 
C) $ 115,000. 
D) $ 323,000. 
A) $ 300,000. 
B) $ 132,500. 
C) $ 115,000. 
D) $ 323,000.

Question 4

Delivery expenses are charged to which of the following areas?

Accepted Answer

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

Question 5

Which type of company typically produces its own inventory?

Accepted Answer

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

Question 6

Which of the following describes the way in which variable costs per unit behave?

Accepted Answer

A) They will decrease as production increases. 
B) They will increase as production decreases. 
C) They will remain the same throughout production levels. 
D) They will decrease as production decreases. 
A) They will decrease as production increases. 
B) They will increase as production decreases. 
C) They will remain the same throughout production levels. 
D) They will decrease as production decreases.

Question 7

The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?

Accepted Answer

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

Question 8

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

Accepted Answer

A) $19,000 
B) $17,000 
C) $176,000 
D) $244,000 
A) $19,000 
B) $17,000 
C) $176,000 
D) $244,000

Question 9

In a manufacturing plant,which is an example of indirect labor?

Accepted Answer

A) Chief operating officer 
B) Machine operators 
C) Plant managers 
D) Salesmen 
A) Chief operating officer 
B) Machine operators 
C) Plant managers 
D) Salesmen

Question 10

A law firm would be classified as a:

Accepted Answer

A) manufacturing company. 
B) merchandising company. 
C) service company. 
D) simple company. 
A) manufacturing company. 
B) merchandising company. 
C) service company. 
D) simple company.

Question 11

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 operating income for the year?

Accepted Answer

A) $86,000 
B) $81,000 
C) $96,000 
D) $76,000 
A) $86,000 
B) $81,000 
C) $96,000 
D) $76,000

Question 12

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.
 $$\begin{array} { | l | l | l | l | } 
\hline \text { A. } & \text { Direct costs } & \text { F. } & \text { Variable costs } \
\hline \text { B. } & \text { Marpinal cost } & \text { G. } & \text { Indirect cost } \
\hline \text { C. } & \text { Average cost } & \text { H. } & \text { Surk cost } \
\hline \text { D. } & \text { Conversion costs } & \text { I. } & \text { Differential cost } \
\hline \text { E. } & \text { Prine costs } & & \
\hline
\end{array}$$ ___ The combination of direct materials and direct labor
___ Costs that change in total in direct proportion to changes in volume
___ A cost that relates to the cost object,but cannot be traced to it
___ A cost that has already been incurred

Accepted Answer

_E_ The combination of direct materials

Question 13

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 cost of goods sold?

Accepted Answer

A) $133,000 
B) $96,000 
C) $106,000 
D) $ 81,000 
A) $133,000 
B) $96,000 
C) $106,000 
D) $ 81,000

Question 14

____________ has/have three types of inventory.

Accepted Answer

A) A service company 
B) A merchandising company 
C) A manufacturing company 
D) All of these companies 
A) A service company 
B) A merchandising company 
C) A manufacturing company 
D) All of these companies

Question 15

If a company wants to determine a product's cost,they must assign only direct costs.

Accepted Answer

A) True 
 B)False

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:  The combination of direct materials and direct labor
Costs that change in total in direct proportion to changes in volume
A cost that relates to the cost object, but cannot be traced to it
A cost that has already been incurred

Accepted Answer

The Answer of Direct costs and Marginal cost and Average is...

Question 18

Comfy Furniture Company manufactures furniture at its Akron,Ohio,factory.Some of its costs from the past year include: $\begin{array}{|l|cc|}
\hline \text { Depreciation on sales office } & \$  11,000 \
\hline \text { Depreciation on factory equipment } & \$  16,000 \
\hline \text { Factory supervisor salary } & \$  52,500 \
\hline \text { Sales commissions } & \$  23,000 \
\hline \text { Lubricants used in factory equipment } & \$  3,000 \
\hline \text { Insurance costs for factory } & \$ 21,000 \
\hline \text { Wages paid to maintenance workers } & \$  115,000 \
\hline \text { Fabric used to upholster furniture } & \$  7,000 \
\hline \text { Freight-in (on raw materials) } & \$ 2,500 \
\hline \text { Costs of delivery to customers } & \$  9,000 \
\hline \text { Wages paid to assembly-line workers } & \$  132,500 \
\hline \text { Lumber used to build product } & \$  72,000 \
\hline \text { Utilities in factory } & \$ 44,500 \
\hline \text { Utilities in sales office } &\$ 26,500 \
\hline
\end{array}$
- Manufacturing overhead costs for Comfy Furniture Company totaled:

Accepted Answer

A) $ 324,000. 
B) $ 122,000. 
C) $ 228,000. 
D) $ 252,000. 
A) $ 324,000. 
B) $ 122,000. 
C) $ 228,000. 
D) $ 252,000.

Question 19

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.

Question 20

Which of the following describes the way in which total variable costs behave?

Accepted Answer

A) They remain the same throughout production levels. 
B) They will decrease as production decreases. 
C) They will decrease as production increases. 
D) They will increase as production decreases. 
A) They remain the same throughout production levels. 
B) They will decrease as production decreases. 
C) They will decrease as production increases. 
D) They will increase as production decreases.

For a manufactured product,indirect materials and indirect labor are:

Retailers sell their products to other wholesalers.

Delivery expenses are charged to which of the following areas?

Which type of company typically produces its own inventory?

Which of the following describes the way in which variable costs per unit behave?

The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?

In a manufacturing plant,which is an example of indirect labor?

A law firm would be classified as a:

____________ has/have three types of inventory.

If a company wants to determine a product's cost,they must assign only direct costs.

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

Which statement describes direct materials in a manufacturing setting?

Which of the following describes the way in which total variable costs behave?

Introduction to Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost Behavior

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

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 2: Building Blocks of Managerial Accounting

For a manufactured product,indirect materials and indirect labor are:

Retailers sell their products to other wholesalers.

Delivery expenses are charged to which of the following areas?

Which type of company typically produces its own inventory?

Which of the following describes the way in which variable costs per unit behave?

The costs associated with reengineering machinery and its location within the factory to increase efficiency would be considered which part of the value chain?

In a manufacturing plant,which is an example of indirect labor?

A law firm would be classified as a:

____________ has/have three types of inventory.

If a company wants to determine a product's cost,they must assign only direct costs.

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

Which statement describes direct materials in a manufacturing setting?

Which of the following describes the way in which total variable costs behave?

Introduction to Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost Behavior

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

Statement of Cash Flows

Financial Statement Analysis

Filters