Question 1

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 2

Manufacturing overhead costs for a product include

Accepted Answer

A)  direct material. 
B)  operating expenses. 
C)  prime costs. 
D)  indirect manufacturing costs. 
A)  direct material. 
B)  operating expenses. 
C)  prime costs. 
D)  indirect manufacturing costs.

Question 3

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

Accepted Answer

A) True 
 B)False

Question 4

Use the information below to answer the following question(s).
Frazer Inc. had the following activities in the year:
  
-What is Frazer's cost of goods sold?

Accepted Answer

A)  $520,000 
B)  $464,000 
C)  $440,000 
D)  $400,000 
A)  $520,000 
B)  $464,000 
C)  $440,000 
D)  $400,000

Question 5

A company's total costs are calculated by

Accepted Answer

A)  subtracting total fixed costs from total variable costs. 
B)  subtracting total variable costs from total fixed costs. 
C)  adding total fixed costs to total variable costs. 
D)  subtracting total fixed costs and total variable costs from sales. 
A)  subtracting total fixed costs from total variable costs. 
B)  subtracting total variable costs from total fixed costs. 
C)  adding total fixed costs to total variable costs. 
D)  subtracting total fixed costs and total variable costs from sales.

Question 6

Which element in the value chain would contain inventoriable costs for a manufacturer?

Accepted Answer

A)  Research and development 
B)  Design 
C)  Production 
D)  Distribution 
A)  Research and development 
B)  Design 
C)  Production 
D)  Distribution

Question 7

Use the information below to answer the following question(s).
Rustic Living Furniture Company manufactures furniture at its Saskatoon Saskatchewan factory. Some of its costs from the past year include:
  
-Conversion for Rustic Living Furniture Company totaled

Accepted Answer

A)  $215,500. 
B)  $275,500. 
C)  $272,500. 
D)  $271,500. 
A)  $215,500. 
B)  $275,500. 
C)  $272,500. 
D)  $271,500.

Question 8

Decision making is guided only by differential costs.

Accepted Answer

A) True 
 B)False

Question 9

Prime 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 10

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 11

When determining the cost of a manufactured product, a salesperson's salary would be classified as

Accepted Answer

A)  a direct cost. 
B)  an indirect cost. 
C)  a period cost. 
D)  a conversion cost. 
A)  a direct cost. 
B)  an indirect cost. 
C)  a period cost. 
D)  a conversion cost.

Question 12

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 13

When manufacturing products, which of the following is an example of an inventoriable cost?

Accepted Answer

A)  Depreciation on office equipment 
B)  Depreciation on store building 
C)  Depreciation on factory equipment 
D)  Sales salaries expenses 
A)  Depreciation on office equipment 
B)  Depreciation on store building 
C)  Depreciation on factory equipment 
D)  Sales salaries expenses

Question 14

Which of the following is a period cost for a manufacturer?

Accepted Answer

A)  Direct labour 
B)  Direct materials 
C)  Freight out 
D)  Manufacturing overhead 
A)  Direct labour 
B)  Direct materials 
C)  Freight out 
D)  Manufacturing overhead

Question 15

A company's distribution system is an important part of the value chain.

Accepted Answer

A) True 
 B)False

Question 16

Use the information below to answer the following question(s).
Ontario Industries Inc. had the following activities during the year:
  
-What is the amount of the manufacturing overhead incurred at Ontario Industries Inc.?

Accepted Answer

A)  $41,000 
B)  $35,000 
C)  $23,000 
D)  $29,000 
A)  $41,000 
B)  $35,000 
C)  $23,000 
D)  $29,000

Question 17

When manufacturing products, which of the following is an example of a period cost?

Accepted Answer

A)  Advertising expense 
B)  Depreciation expense on factory equipment 
C)  Indirect materials used in the factory 
D)  Property taxes on the plant 
A)  Advertising expense 
B)  Depreciation expense on factory equipment 
C)  Indirect materials used in the factory 
D)  Property taxes on the plant

Question 18

Walmart 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 19

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

Accepted Answer

A) True 
 B)False

Question 20

Which type(s) of companies prepare income statements and balance sheets?

Accepted Answer

A)  Service company 
B)  Merchandising company 
C)  Manufacturing company 
D)  All types of companies 
A)  Service company 
B)  Merchandising company 
C)  Manufacturing company 
D)  All types of companies

Manufacturing overhead costs for Comfy Furniture Company totaled

Manufacturing overhead costs for a product include

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

Use the information below to answer the following question(s). Frazer Inc. had the following activities in the year: -What is Frazer's cost of goods sold?

A company's total costs are calculated by

Which element in the value chain would contain inventoriable costs for a manufacturer?

Use the information below to answer the following question(s). Rustic Living Furniture Company manufactures furniture at its Saskatoon Saskatchewan factory. Some of its costs from the past year include: -Conversion for Rustic Living Furniture Company totaled

Decision making is guided only by differential costs.

Prime costs consist of

The value chain is used by

When determining the cost of a manufactured product, a salesperson's salary would be classified as

Which type of company typically produces its own inventory?

When manufacturing products, which of the following is an example of an inventoriable cost?

Which of the following is a period cost for a manufacturer?

A company's distribution system is an important part of the value chain.

Use the information below to answer the following question(s). Ontario Industries Inc. had the following activities during the year: -What is the amount of the manufacturing overhead incurred at Ontario Industries Inc.?

When manufacturing products, which of the following is an example of a period cost?

Walmart classifies its clothing held for sale as

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

Which type(s) of companies prepare income statements and balance sheets?

Introduction to Managerial Accounting

Cost Behaviour

Cost-Volume-Profit Analysis

Job Costing

Process Costing

Activity Based Costing

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

Manufacturing overhead costs for Comfy Furniture Company totaled

Manufacturing overhead costs for a product include

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

Use the information below to answer the following question(s). Frazer Inc. had the following activities in the year: -What is Frazer's cost of goods sold?

A company's total costs are calculated by

Which element in the value chain would contain inventoriable costs for a manufacturer?

Use the information below to answer the following question(s). Rustic Living Furniture Company manufactures furniture at its Saskatoon Saskatchewan factory. Some of its costs from the past year include: -Conversion for Rustic Living Furniture Company totaled

Decision making is guided only by differential costs.

Prime costs consist of

The value chain is used by

When determining the cost of a manufactured product, a salesperson's salary would be classified as

Which type of company typically produces its own inventory?

When manufacturing products, which of the following is an example of an inventoriable cost?

Which of the following is a period cost for a manufacturer?

A company's distribution system is an important part of the value chain.

Use the information below to answer the following question(s). Ontario Industries Inc. had the following activities during the year: -What is the amount of the manufacturing overhead incurred at Ontario Industries Inc.?

When manufacturing products, which of the following is an example of a period cost?

Walmart classifies its clothing held for sale as

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

Which type(s) of companies prepare income statements and balance sheets?

Introduction to Managerial Accounting

Cost Behaviour

Cost-Volume-Profit Analysis

Job Costing

Process Costing

Activity Based Costing

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