Exam 2: Building Blocks of Managerial Accounting

A company which is in the business of reselling tangible products purchased from supplier to businesses which resell the product is what type of company?

For a manufacturer, beginning work in process would be equal to

Use the information below to answer the following question(s). Bombardeer, an auto manufacturer, incurred the following costs last month (in thousands of dollars). -The total manufacturing overhead costs for Bombardeer are

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

Name and briefly describe the activities that make up the value chain.

Use the information below to answer the following question(s). Country Furniture Company manufactures furniture at its Halifax, Nova Scotia, factory. Some of its costs from the past year include: -Conversion costs for Country Furniture Company totaled

Total manufacturing costs include direct materials and direct labour, but not manufacturing overhead.

The cost of making one more unit is called

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

Direct labour for a company was $132,000; manufacturing overhead was $275,000; and direct materials were $253,000. Conversion costs would total

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

Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured below and the income statement of Redlink Manufacturing. Fill in the missing items.

Research and development is needed to improve products and to design new products.

The schedule of cost of goods manufactured is prepared before the income statement for a manufacturing company.

When do inventoriable costs become expenses?

A company has fixed costs of $75,000 per month. If sales double from 5,000 to 10,000 units during the month, fixed costs will

Selected information regarding a company's most recent quarter follows (all data in thousands). What was manufacturing overhead for the quarter?

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

A law firm would be classified as a

White Water Tours is considering the purchase of a new tour boat. They are faced with choosing between the Wave Runner and the Split Hull models. The boats are comparable on performance and both meet the company's needs equally. Both boats have an expected useful life of five years at which time they will be sold. The following information has been gathered to assist in making the purchase decision: Required: A. Which if any of the listed costs above are not relevant to your decision? B. What are the total relevant costs of purchasing the Wave Runner? C. What are the total relevant costs of purchasing the Split Hulla? D. What is the differential cost involved in your decision?