Question 1

Which of the following is NOT part of a company's value chain?

Accepted Answer

A) Design 
B) Distribution 
C) Marketing 
D) Administration 
A) Design 
B) Distribution 
C) Marketing 
D) Administration

Question 2

Which cost does NOT relate to part of the value chain for a toy company?

Accepted Answer

A) Administrative costs 
B) Cost of advertising the new products 
C) Cost of shipping to retailers 
D) Salaries of game designers 
A) Administrative costs 
B) Cost of advertising the new products 
C) Cost of shipping to retailers 
D) Salaries of game designers

Question 3

A company produces toy airplanes at a variable cost of $21 per toy.If 6,000 toys are produced at a total variable cost of $126,000,the total variable cost at 4,000 toys will be:

Accepted Answer

A) $126,000. 
B) $ 84,000. 
C) $210,000. 
D) none of the above. 
A) $126,000. 
B) $ 84,000. 
C) $210,000. 
D) none of the above.

Question 4

The value chain is used by:

Accepted Answer

A) only manufacturing and merchandising businesses. 
B) only service and manufacturing businesses. 
C) only service and merchandising businesses. 
D) service,manufacturing and merchandising businesses. 
A) only manufacturing and merchandising businesses. 
B) only service and manufacturing businesses. 
C) only service and merchandising businesses. 
D) service,manufacturing and merchandising businesses.

Question 5

Indirect costs incurred in manufacturing autos include all of the following EXCEPT:

Accepted Answer

A) cost of the engines. 
B) machinery depreciation in the factory. 
C) plant utilities. 
D) plant supervisor salary. 
A) cost of the engines. 
B) machinery depreciation in the factory. 
C) plant utilities. 
D) plant supervisor salary.

Question 6

Which of the following would be on the balance sheet of a service company?

Accepted Answer

A) Factory equipment depreciation 
B) Cost of goods manufactured 
C) Cost of goods sold 
D) Accounts receivable 
A) Factory equipment depreciation 
B) Cost of goods manufactured 
C) Cost of goods sold 
D) Accounts receivable

Question 7

The total cost of a product equals the total fixed costs plus the average variable costs.

Accepted Answer

A) True 
 B)False

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 customer service category of the value chain?

Accepted Answer

A) $80,000 
B) $ 8,000 
C) $71,000 
D) $12,000 
A) $80,000 
B) $ 8,000 
C) $71,000 
D) $12,000

Question 9

Which of the following are classified as manufacturing overhead?

Accepted Answer

A) Direct materials and direct labor 
B) Indirect labor and indirect materials 
C) All materials 
D) Factory rent and direct labor 
A) Direct materials and direct labor 
B) Indirect labor and indirect materials 
C) All materials 
D) Factory rent and direct labor

Question 10

Sunk costs are a major part of the decision making process.

Accepted Answer

A) True 
 B)False

Question 11

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

_2_ Design _6_ Customer Servic

Question 12

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 marketing category of the value chain?

Accepted Answer

A) $227,000 
B) $218,000 
C) $67,000 
D) $311,000 
A) $227,000 
B) $218,000 
C) $67,000 
D) $311,000

Question 13

Match between columns
                        Premises:  Revenue
Salaries expense
Customer service expense
Cost of goods manufactured
Cost of goods sold

Accepted Answer

The Answer of service company. and merchandising company. and manufacturing is...

Question 14

Which of the following would be on the income statement of a retailer?

Accepted Answer

A) Value of inventory 
B) Cost of goods sold 
C) Accounts payable 
D) Accounts receivable 
A) Value of inventory 
B) Cost of goods sold 
C) Accounts payable 
D) Accounts receivable

Question 15

A marginal cost is the cost of making one more unit of a product.

Accepted Answer

A) True 
 B)False

Question 16

Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted). $\begin{array}{|l|ll|}
\hline \text { Sales revenue } & \$ & 4,000 \
\hline \text { Purchases of direct materials } & \$ & 500 \
\hline \text { Direct labor } & \$ & 450 \
\hline \text { Manufacturing overhead } & \$ & 620 \
\hline \text { Operating expenses } & \$ & 700 \
\hline \text { Beginning raw materials inventory } & \$ & 150 \
\hline \text { Ending raw materials inventory } & \$ & 170 \
\hline \text { Beginning work in process inventory } & \$ & 320 \
\hline \text { Ending work in process inventory } & \$ & 310 \
\hline \text { Beginning finished goods inventory } & \$ & 250 \
\hline \text { Ending finished goods inventory } & \$ & 200 \
\hline
\end{array}$ 
-What was direct materials used?

Accepted Answer

A) $500 
B) $480 
C) $650 
D) $520 
A) $500 
B) $480 
C) $650 
D) $520

Question 17

Compute the missing amounts.
$\begin{array} { | l | c | c | } 
\hline & \text { Miami Company } & \text { Orlando Company } \
\hline \text { Sales } & \$ 200,000 & ( \mathrm { D } ) \
\hline \text { Cost of Goods Sold } & & \
\hline \text { Beginning Inventory } & ( \mathrm { A } ) & 60,000 \
\hline \text { Purchases and Freight-In } & 118,000 & ( \mathrm { E } ) \
\hline \text { Cost of goods available for sale } & ( \mathrm { B } ) & 180,000 \
\hline \text { Ending inventory } & 4,000 & 4,000 \
\hline \text { Cost of goods sold } & 120,000 & ( \mathrm {~F} ) \
\hline \text { Gross Margin } & 80,000 & 224,000 \
\hline \text { Selling and Administrative Expenses } & ( \mathrm { C } ) & 170,000 \
\hline \text { Operating Income } & 24,000 & ( \mathrm { G } ) \
\hline
\end{array}$

Accepted Answer

A)124,000-118,000 = 6,000 
B)124,000 120

Question 18

Match between columns
                        Premises: Direct materials used in factory
 Factory utilities
 Salespersons’ commissions
 Salary of plant manager
Indirect materials used in factory
Depreciation expense on store equipment
Indirect labor incurred in factory
Advertising expense
Direct labor incurred in factory
 Factory machinery repairs and maintenance
Depreciation expense on factory machinery
Supplies used in store
 Plant insurance expired

Accepted Answer

The Answer of Product and Period is...

Question 19

Which of the following statements describes inventoriable product costs?

Accepted Answer

A) They are expensed on the income statement when incurred. 
B) They are used for external reporting purposes. 
C) They include marketing and distribution costs. 
D) Both A and C are correct. 
A) They are expensed on the income statement when incurred. 
B) They are used for external reporting purposes. 
C) They include marketing and distribution costs. 
D) Both A and C are correct.

Question 20

A company decision as to where to locate a new store would be considered:

Accepted Answer

A) customer service. 
B) marketing. 
C) production. 
D) research and development. 
A) customer service. 
B) marketing. 
C) production. 
D) research and development.

Which of the following is NOT part of a company's value chain?

Which cost does NOT relate to part of the value chain for a toy company?

A company produces toy airplanes at a variable cost of $21 per toy.If 6,000 toys are produced at a total variable cost of $126,000,the total variable cost at 4,000 toys will be:

The value chain is used by:

Indirect costs incurred in manufacturing autos include all of the following EXCEPT:

Which of the following would be on the balance sheet of a service company?

The total cost of a product equals the total fixed costs plus the average variable costs.

Which of the following are classified as manufacturing overhead?

Sunk costs are a major part of the decision making process.

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

Which of the following would be on the income statement of a retailer?

A marginal cost is the cost of making one more unit of a product.

Which of the following statements describes inventoriable product costs?

A company decision as to where to locate a new store would be considered:

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

Which of the following is NOT part of a company's value chain?

Which cost does NOT relate to part of the value chain for a toy company?

A company produces toy airplanes at a variable cost of $21 per toy.If 6,000 toys are produced at a total variable cost of $126,000,the total variable cost at 4,000 toys will be:

The value chain is used by:

Indirect costs incurred in manufacturing autos include all of the following EXCEPT:

Which of the following would be on the balance sheet of a service company?

The total cost of a product equals the total fixed costs plus the average variable costs.

Which of the following are classified as manufacturing overhead?

Sunk costs are a major part of the decision making process.

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

Which of the following would be on the income statement of a retailer?

A marginal cost is the cost of making one more unit of a product.

Which of the following statements describes inventoriable product costs?

A company decision as to where to locate a new store would be considered:

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

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