Question 1

A product support hot line would be considered

Accepted Answer

A)  customer service. 
B)  distribution. 
C)  production or purchases. 
D)  marketing. 
A)  customer service. 
B)  distribution. 
C)  production or purchases. 
D)  marketing.

Question 2

Use the information below to answer the following question(s).
Paris Plastics has monthly fixed costs of $90,000, while its variable costs are $4.00 per unit. The sales price per unit is $16.00 and Paris Plastics sold 12,000 units.
-Paris Plastics' total variable costs will be

Accepted Answer

A)  $90,000. 
B)  $192,000. 
C)  $144,000. 
D)  $48,000. 
A)  $90,000. 
B)  $192,000. 
C)  $144,000. 
D)  $48,000.

Question 3

________ costs include all costs associated with the production of a product.

Accepted Answer

A)  Direct 
B)  Inventoriable 
C)  Mixed 
D)  Overhead 
A)  Direct 
B)  Inventoriable 
C)  Mixed 
D)  Overhead

Question 4

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 gross profit at Readers Unlimited?

Accepted Answer

A)  $32,000 
B)  $82,000 
C)  $85,000 
D)  $119,000 
A)  $32,000 
B)  $82,000 
C)  $85,000 
D)  $119,000

Question 5

Where would period costs be found on the financial statements?

Accepted Answer

A)  Under current assets on the balance sheet 
B)  Under current liabilities on the balance sheet 
C)  As operating expenses on the income statement for a previous period 
D)  As operating expenses on the income statement in the period incurred 
A)  Under current assets on the balance sheet 
B)  Under current liabilities on the balance sheet 
C)  As operating expenses on the income statement for a previous period 
D)  As operating expenses on the income statement in the period incurred

Question 6

Costs can be either direct or indirect, depending upon the cost object.

Accepted Answer

A) True 
 B)False

Question 7

Use the information below to answer the following question(s).
Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element:
  
-What were the inventoriable costs at the Uniquely Me Shoppe?

Accepted Answer

A)  $99,000 
B)  $116,000 
C)  $17,000 
D)  $169,000 
A)  $99,000 
B)  $116,000 
C)  $17,000 
D)  $169,000

Question 8

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 the cost of goods available for sale at Readers Unlimited?

Accepted Answer

A)  $105,000 
B)  $82,000 
C)  $87,000 
D)  $102,000 
A)  $105,000 
B)  $82,000 
C)  $87,000 
D)  $102,000

Question 9

The value chain helps companies control costs of products only.

Accepted Answer

A) True 
 B)False

Question 10

Use the information below to answer the following question(s).
Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element:
  
-What were the period costs at the Uniquely Me Shoppe?

Accepted Answer

A)  $306,000 
B)  $137,000 
C)  $110,000 
D)  $207,000 
A)  $306,000 
B)  $137,000 
C)  $110,000 
D)  $207,000

Question 11

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 Ontario Industries Inc.'s ending finished goods inventory?

Accepted Answer

A)  $55,000 
B)  $75,000 
C)  $70,000 
D)  $65,000 
A)  $55,000 
B)  $75,000 
C)  $70,000 
D)  $65,000

Question 12

A prime cost consists of direct labour and factory overhead.

Accepted Answer

A) True 
 B)False

Question 13

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

Accepted Answer

A)  sunk 
B)  imported 
C)  differential 
D)  alternative 
A)  sunk 
B)  imported 
C)  differential 
D)  alternative

Question 14

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:
  
-Direct labour costs for Country Furniture Company totaled

Accepted Answer

A)  $270,500. 
B)  $115,000. 
C)  $155,500. 
D)  $206,000. 
A)  $270,500. 
B)  $115,000. 
C)  $155,500. 
D)  $206,000.

Question 15

When making a decision to buy a new computer, the irrelevant costs are the

Accepted Answer

A)  differential costs. 
B)  relevant costs. 
C)  qualitative characteristics. 
D)  sunk costs. 
A)  differential costs. 
B)  relevant costs. 
C)  qualitative characteristics. 
D)  sunk costs.

Question 16

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 direct materials used during the year?

Accepted Answer

A)  $204,000 
B)  $178,000 
C)  $128,000 
D)  $218,000 
A)  $204,000 
B)  $178,000 
C)  $128,000 
D)  $218,000

Question 17

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 the value of goods available for sale at Back Yards Inc.?

Accepted Answer

A)  $138,000 
B)  $156,000 
C)  $133,000 
D)  $96,000 
A)  $138,000 
B)  $156,000 
C)  $133,000 
D)  $96,000

Question 18

Homeco, 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 Homeco's raw materials inventory contains only direct materials. You have the following information available:
   Find the following amounts:
A. Cost of goods sold in May.
B. Beginning raw materials inventory.
C. Ending finished goods inventory.

Accepted Answer

A. $33,500

Question 19

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 average fixed costs per unit will be

Accepted Answer

A)  $19.00 per unit. 
B)  $5.00 per unit. 
C)  $14.00 per unit. 
D)  $15.00 per unit. 
A)  $19.00 per unit. 
B)  $5.00 per unit. 
C)  $14.00 per unit. 
D)  $15.00 per unit.

Question 20

The owner of Willy's Wonderful Burger Stand is concerned because the stand has been averaging only 3,000 burger sales per month, the stand and staff can make 6,000 burgers per month. The variable cost of each burger (buns, meat, etc.) is $2.50. Monthly fixed costs are (taxes, licenses, space rent and salaries) are $7,500. The owner (Willy Wonderful) believes he could sell 5,000 burgers per month if he cuts the sales price from $5.00 to $4.75 per burger. How much extra profit (above the current level) would he generate if he decreased the sales price?

Accepted Answer

New profit = (5,000 × $4.75) -

A product support hot line would be considered

Use the information below to answer the following question(s). Paris Plastics has monthly fixed costs of $90,000, while its variable costs are $4.00 per unit. The sales price per unit is $16.00 and Paris Plastics sold 12,000 units. -Paris Plastics' total variable costs will be

________ costs include all costs associated with the production of a product.

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 gross profit at Readers Unlimited?

Where would period costs be found on the financial statements?

Costs can be either direct or indirect, depending upon the cost object.

Use the information below to answer the following question(s). Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: -What were the inventoriable costs at the Uniquely Me Shoppe?

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 the cost of goods available for sale at Readers Unlimited?

The value chain helps companies control costs of products only.

Use the information below to answer the following question(s). Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: -What were the period costs at the Uniquely Me Shoppe?

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 Ontario Industries Inc.'s ending finished goods inventory?

A prime cost consists of direct labour and factory overhead.

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

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: -Direct labour costs for Country Furniture Company totaled

When making a decision to buy a new computer, the irrelevant costs are the

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 direct materials used during the year?

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 the value of goods available for sale at Back Yards Inc.?

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 average fixed costs per unit will be

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

A product support hot line would be considered

Use the information below to answer the following question(s). Paris Plastics has monthly fixed costs of $90,000, while its variable costs are $4.00 per unit. The sales price per unit is $16.00 and Paris Plastics sold 12,000 units. -Paris Plastics' total variable costs will be

________ costs include all costs associated with the production of a product.

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 gross profit at Readers Unlimited?

Where would period costs be found on the financial statements?

Costs can be either direct or indirect, depending upon the cost object.

Use the information below to answer the following question(s). Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: -What were the inventoriable costs at the Uniquely Me Shoppe?

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 the cost of goods available for sale at Readers Unlimited?

The value chain helps companies control costs of products only.

Use the information below to answer the following question(s). Uniquely Me Shoppe, a clothing retailer, had the following total costs as grouped by value chain element: -What were the period costs at the Uniquely Me Shoppe?

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 Ontario Industries Inc.'s ending finished goods inventory?

A prime cost consists of direct labour and factory overhead.

Subtracting the costs of one alternative from the costs of the other alternative would be called the ________ cost.

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: -Direct labour costs for Country Furniture Company totaled

When making a decision to buy a new computer, the irrelevant costs are the

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 direct materials used during the year?

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 the value of goods available for sale at Back Yards Inc.?

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 average fixed costs per unit will be

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