Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

The owner of Spicy's Gourmet Popcorn is concerned because the stand has been averaging sales of only 7,500 cartons per month, the stand and staff can make 15,000 cartons of popcorn per month. The variable cost of each carton is $1.50. Monthly fixed costs are (taxes, licenses, space rent and salaries) are $10,000. The owner wants cost information about different volumes so that he can make some operating decisions.
Required: Fill in the following chart to provide Bob with the information he wants.

Accepted Answer

The answer of The owner of Spicy's Gourmet Popcorn is...

Question 4

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 of research and development at Farm Fresh Dairy?

Accepted Answer

A)  $84,000 
B)  $155,000 
C)  $88,000 
D)  $239,000 
A)  $84,000 
B)  $155,000 
C)  $88,000 
D)  $239,000

Question 5

The following amounts were taken from the general ledger of the Excellent Manufacturing Company. Compute the cost of goods manufactured and the cost of goods sold for the company for the year.

Accepted Answer

The answer of The following amounts were taken from the...

Question 6

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

Accepted Answer

A)  $475,000 
B)  $374,000 
C)  $770,000 
D)  $514,000 
A)  $475,000 
B)  $374,000 
C)  $770,000 
D)  $514,000

Question 7

Which type of company has the highest percentage of labour costs?

Accepted Answer

A)  Service company 
B)  Merchandising company 
C)  Manufacturing company 
D)  Wholesale company 
A)  Service company 
B)  Merchandising company 
C)  Manufacturing company 
D)  Wholesale company

Question 8

Selected information regarding a company's most recent quarter follows (all data in thousands).   
What was the ending raw materials inventory?

Accepted Answer

A)  $300 
B)  $970 
C)  $350 
D)  $850 
A)  $300 
B)  $970 
C)  $350 
D)  $850

Question 9

Use the information below to answer the following question(s).
Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted).
  
-What was direct materials used at Sunnydale Manufacturing?

Accepted Answer

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

Question 10

Use the information below to answer the following question(s).
Back Yards Inc. sells lawn furniture. The following information summarizes the company's operating expenses for the year:
  
-What was gross profit at Back Yards Inc.?

Accepted Answer

A)  $(171,000) 
B)  $156,000 
C)  $161,000 
D)  $182,000 
A)  $(171,000) 
B)  $156,000 
C)  $161,000 
D)  $182,000

Question 11

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 customer service category of the value chain at Farm Fresh Dairy?

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 12

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

Accepted Answer

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

Question 13

Irrelevant factors should be considered when making decisions.

Accepted Answer

A) True 
 B)False

Question 14

Use the information below to answer the following question(s).
Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted).
  
-What was operating income at Sunnydale Manufacturing?

Accepted Answer

A)  $1,690 
B)  $2,430 
C)  $3,300 
D)  $4,000 
A)  $1,690 
B)  $2,430 
C)  $3,300 
D)  $4,000

Question 15

Provide a description of an activity or process that a company could undertake to integrate sustainability into the value chain.

Accepted Answer

Examples from the text include:
Research

Question 16

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:
  
-Direct labour for Rustic Living Furniture Company totaled

Accepted Answer

A)  $160,000. 
B)  $220,000. 
C)  $100,000. 
D)  $107,500. 
A)  $160,000. 
B)  $220,000. 
C)  $100,000. 
D)  $107,500.

Question 17

Selected information regarding a company's most recent quarter follows (all data in thousands).   
What was cost of goods sold?

Accepted Answer

A)  $1,610 
B)  $1,740 
C)  $1,060 
D)  $860 
A)  $1,610 
B)  $1,740 
C)  $1,060 
D)  $860

Question 18

Which of the following costs could be found in work in process inventory for an ice cream manufacturer?

Accepted Answer

A)  Utilities for administrative offices 
B)  Assembly worker wages 
C)  Depreciation on sales office 
D)  Customer order forms 
A)  Utilities for administrative offices 
B)  Assembly worker wages 
C)  Depreciation on sales office 
D)  Customer order forms

Question 19

Which of the following is calculated last before operating income can be determined for a manufacturer?

Accepted Answer

A)  Cost of goods available for sale 
B)  Cost of goods manufactured 
C)  Cost of goods sold 
D)  Cost of direct materials 
A)  Cost of goods available for sale 
B)  Cost of goods manufactured 
C)  Cost of goods sold 
D)  Cost of direct materials

Question 20

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 cost of goods sold for the year at Towpath Tennis & Recreation?

Accepted Answer

A)  $177,000 
B)  $150,000 
C)  $145,000 
D)  $90,000 
A)  $177,000 
B)  $150,000 
C)  $145,000 
D)  $90,000

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

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

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 of research and development at Farm Fresh Dairy?

The following amounts were taken from the general ledger of the Excellent Manufacturing Company. Compute the cost of goods manufactured and the cost of goods sold for the company for the year.

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

Which type of company has the highest percentage of labour costs?

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

Use the information below to answer the following question(s). Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted). -What was direct materials used at Sunnydale Manufacturing?

Use the information below to answer the following question(s). Back Yards Inc. sells lawn furniture. The following information summarizes the company's operating expenses for the year: -What was gross profit at Back Yards Inc.?

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 customer service category of the value chain at Farm Fresh Dairy?

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

Irrelevant factors should be considered when making decisions.

Use the information below to answer the following question(s). Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted). -What was operating income at Sunnydale Manufacturing?

Provide a description of an activity or process that a company could undertake to integrate sustainability into the value chain.

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: -Direct labour for Rustic Living Furniture Company totaled

Selected information regarding a company's most recent quarter follows (all data in thousands). What was cost of goods sold?

Which of the following costs could be found in work in process inventory for an ice cream manufacturer?

Which of the following is calculated last before operating income can be determined for a manufacturer?

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 cost of goods sold for the year at Towpath Tennis & Recreation?

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

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

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

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 of research and development at Farm Fresh Dairy?

The following amounts were taken from the general ledger of the Excellent Manufacturing Company. Compute the cost of goods manufactured and the cost of goods sold for the company for the year.

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

Which type of company has the highest percentage of labour costs?

Selected information regarding a company's most recent quarter follows (all data in thousands). What was the ending raw materials inventory?

Use the information below to answer the following question(s). Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted). -What was direct materials used at Sunnydale Manufacturing?

Use the information below to answer the following question(s). Back Yards Inc. sells lawn furniture. The following information summarizes the company's operating expenses for the year: -What was gross profit at Back Yards Inc.?

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 customer service category of the value chain at Farm Fresh Dairy?

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

Irrelevant factors should be considered when making decisions.

Use the information below to answer the following question(s). Selected financial information for Sunnydale Manufacturing is presented in the following table (000s omitted). -What was operating income at Sunnydale Manufacturing?

Provide a description of an activity or process that a company could undertake to integrate sustainability into the value chain.

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: -Direct labour for Rustic Living Furniture Company totaled

Selected information regarding a company's most recent quarter follows (all data in thousands). What was cost of goods sold?

Which of the following costs could be found in work in process inventory for an ice cream manufacturer?

Which of the following is calculated last before operating income can be determined for a manufacturer?

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 cost of goods sold for the year at Towpath Tennis & Recreation?

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