Question 1

When determining the cost of a manufactured product, a factory janitor's wages 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 2

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.

Question 3

Dino Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year:
   
Required: Prepare an income statement for the most recent year.

Accepted Answer

The answer of Dino Company sells collectibles. The following information...

Question 4

Direct material costs for Comfy Furniture Company totaled

Accepted Answer

A)  $81,500. 
B)  $79,000. 
C)  $7,000. 
D)  $72,000. 
A)  $81,500. 
B)  $79,000. 
C)  $7,000. 
D)  $72,000.

Question 5

The flow of inventory costs in a manufacturing company is

Accepted Answer

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

Question 6

Why do most service firms not have inventory costs pertaining to items to be sold? What type of costs do they generally have?

Accepted Answer

Service firms do not have inventory cost

Question 7

The costs associated with re-engineering 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

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

Accepted Answer

A. $23,000

Question 9

Use the information below to answer the following question(s).
Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit.The sales price per unit is $20.00 and they sold 8,000 units.
-Sanjay Company's total sales revenue will be

Accepted Answer

A)  $160,000. 
B)  $120,000. 
C)  $112,000. 
D)  $8,000. 
A)  $160,000. 
B)  $120,000. 
C)  $112,000. 
D)  $8,000.

Question 10

Use the information below to answer the following question(s).
Sunnybrook Orange Groves processes a variety of fresh juices. The company has the following expenses for July:

-What is the total cost for the distribution category of the value chain at Sunnybrook Orange Groves?

Accepted Answer

A)  $20,000 
B)  $21,000 
C)  $17,000 
D)  $19,000 
A)  $20,000 
B)  $21,000 
C)  $17,000 
D)  $19,000

Question 11

Manufacturers consider selling and administrative costs to be

Accepted Answer

A)  prime costs. 
B)  conversion costs. 
C)  inventoriable costs. 
D)  period costs. 
A)  prime costs. 
B)  conversion costs. 
C)  inventoriable costs. 
D)  period costs.

Question 12

Use the information below to answer the following question(s).
Towpath Tennis & Recreation's operating activities for the year are listed below:
  
-What is the gross profit for the year at Towpath Tennis & Recreation?

Accepted Answer

A)  $157,000 
B)  $152,000 
C)  $95,000 
D)  $240,000 
A)  $157,000 
B)  $152,000 
C)  $95,000 
D)  $240,000

Question 13

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

Accepted Answer

A)  $260,000 
B)  $232,000 
C)  $200,000 
D)  $240,000 
A)  $260,000 
B)  $232,000 
C)  $200,000 
D)  $240,000

Question 14

Use the information below to answer the following question(s).
Farm Fresh Dairy provided the following expense information for May:
  
-What is the total cost for the production category of the value chain at Farm Fresh Dairy?

Accepted Answer

A)  $200,000 
B)  $205,000 
C)  $207,000 
D)  $126,000 
A)  $200,000 
B)  $205,000 
C)  $207,000 
D)  $126,000

Question 15

Use the information below to answer the following question(s).
Sunnybrook Orange Groves processes a variety of fresh juices. The company has the following expenses for July:

-What is the total cost for the customer service category of the value chain at Sunnybrook Orange Groves?

Accepted Answer

A)  $29,000 
B)  $6,000 
C)  $2,000 
D)  $31,000 
A)  $29,000 
B)  $6,000 
C)  $2,000 
D)  $31,000

Question 16

The determination of a cost as being either direct or indirect depends upon

Accepted Answer

A)  the accounting system. 
B)  the allocation system. 
C)  the cost tracing system. 
D)  the cost object chosen to determine its individual costs. 
A)  the accounting system. 
B)  the allocation system. 
C)  the cost tracing system. 
D)  the cost object chosen to determine its individual costs.

Question 17

Use the information below to answer the following question(s).
Active Apparel Company reports the following data for its first year of operation.
  
-What is the cost of goods sold at Active Apparel Company?

Accepted Answer

A)  $500,000 
B)  $428,000 
C)  $685,000 
D)  $548,000 
A)  $500,000 
B)  $428,000 
C)  $685,000 
D)  $548,000

Question 18

When manufacturing products, direct labour and direct materials are classified as

Accepted Answer

A)  period costs and expensed when incurred. 
B)  period costs and expensed when the goods are sold. 
C)  product costs and expensed when incurred. 
D)  product costs and expensed when the goods are sold. 
A)  period costs and expensed when incurred. 
B)  period costs and expensed when the goods are sold. 
C)  product costs and expensed when incurred. 
D)  product costs and expensed when the goods are sold.

Question 19

Direct costs are allocated to cost objects.

Accepted Answer

A) True 
 B)False

Question 20

Place the value chain elements in the normal 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 Service
4

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

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

Dino Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year: Required: Prepare an income statement for the most recent year.

Direct material costs for Comfy Furniture Company totaled

The flow of inventory costs in a manufacturing company is

Why do most service firms not have inventory costs pertaining to items to be sold? What type of costs do they generally have?

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

Use the information below to answer the following question(s). Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit.The sales price per unit is $20.00 and they sold 8,000 units. -Sanjay Company's total sales revenue will be

Use the information below to answer the following question(s). Sunnybrook Orange Groves processes a variety of fresh juices. The company has the following expenses for July: -What is the total cost for the distribution category of the value chain at Sunnybrook Orange Groves?

Manufacturers consider selling and administrative costs to be

Use the information below to answer the following question(s). Towpath Tennis & Recreation's operating activities for the year are listed below: -What is the gross profit for the year at Towpath Tennis & Recreation?

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

Use the information below to answer the following question(s). Farm Fresh Dairy provided the following expense information for May: -What is the total cost for the production category of the value chain at Farm Fresh Dairy?

Use the information below to answer the following question(s). Sunnybrook Orange Groves processes a variety of fresh juices. The company has the following expenses for July: -What is the total cost for the customer service category of the value chain at Sunnybrook Orange Groves?

The determination of a cost as being either direct or indirect depends upon

Use the information below to answer the following question(s). Active Apparel Company reports the following data for its first year of operation. -What is the cost of goods sold at Active Apparel Company?

When manufacturing products, direct labour and direct materials are classified as

Direct costs are allocated to cost objects.

Place the value chain elements in the normal order by numbering them from 1 to 6. Design Customer Service Marketing Research and Development Distribution Production or Purchases

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

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

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

Dino Company sells collectibles. The following information summarizes Dino's operating activities for the most recent year: Required: Prepare an income statement for the most recent year.

Direct material costs for Comfy Furniture Company totaled

The flow of inventory costs in a manufacturing company is

Why do most service firms not have inventory costs pertaining to items to be sold? What type of costs do they generally have?

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

Use the information below to answer the following question(s). Sanjay Company has monthly fixed costs of $112,000. The variable costs are $5.00 per unit.The sales price per unit is $20.00 and they sold 8,000 units. -Sanjay Company's total sales revenue will be

Use the information below to answer the following question(s). Sunnybrook Orange Groves processes a variety of fresh juices. The company has the following expenses for July: -What is the total cost for the distribution category of the value chain at Sunnybrook Orange Groves?

Manufacturers consider selling and administrative costs to be

Use the information below to answer the following question(s). Towpath Tennis & Recreation's operating activities for the year are listed below: -What is the gross profit for the year at Towpath Tennis & Recreation?

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

Use the information below to answer the following question(s). Farm Fresh Dairy provided the following expense information for May: -What is the total cost for the production category of the value chain at Farm Fresh Dairy?

Use the information below to answer the following question(s). Sunnybrook Orange Groves processes a variety of fresh juices. The company has the following expenses for July: -What is the total cost for the customer service category of the value chain at Sunnybrook Orange Groves?

The determination of a cost as being either direct or indirect depends upon

Use the information below to answer the following question(s). Active Apparel Company reports the following data for its first year of operation. -What is the cost of goods sold at Active Apparel Company?

When manufacturing products, direct labour and direct materials are classified as

Direct costs are allocated to cost objects.

Place the value chain elements in the normal order by numbering them from 1 to 6. ________ Design ________ Customer Service ________ Marketing ________ Research and Development ________ Distribution ________ Production or Purchases

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

Place the value chain elements in the normal order by numbering them from 1 to 6. Design Customer Service Marketing Research and Development Distribution Production or Purchases