Exam 2: Building Blocks of Managerial Accounting

Use the information below to answer the following question(s). Readers Unlimited sells books. The following information summarizes the company's operating expenses for the year: -What is operating income at Readers Unlimited?

Which function of the value chain incorporates the most opportunity to create sustainability for manufacturing companies?

Use the information below to answer the following question(s). Active Apparel Company reports the following data for its first year of operation. -What are the total manufacturing costs to account for at Active Apparel Company?

Average costing should be used to forecast costs at different levels of production.

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

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 available for sale at Towpath Tennis & Recreation?

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 research and development category of the value chain at Lucas Family Orange Groves?

Total variable costs

When determining the cost of a manufactured product, the cost of lighting the factory would be classified as

Which of the following represents a sunk cost?

For a manufactured product, indirect materials and indirect labour are

The owner of Fat Man's Sausage Cart is concerned because the stand has been averaging only 5,500 sausage sales per month, the stand and staff can make 7,000 sausages on a bun per month. The variable cost of each sausage (buns, meat, etc.) is $3.50. Monthly fixed costs are (taxes, licenses, space rent and salaries) are $10,000. The owner (Big Bob) 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.

Which statement describes direct materials in a manufacturing setting?

Which of the following statements describes inventoriable product costs?

Certain materials used in a manufacturing plant cannot be traced to a specific unit. These materials are called ________ materials.

Rent on a factory building would be considered to be

Use the information below to answer the following question(s). First Sporting Equipment manufactures sporting goods. Selected costs from the past year include: -Inventoriable product costs for First Sporting Equipment totaled

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

When deciding to buy a new computer, the irrelevant cost is the

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 cost of goods sold at Sunnydale Manufacturing?