Question 1

Which of the following would be on the balance sheet of a service company?

Accepted Answer

A)  Factory equipment depreciation 
B)  Cost of goods manufactured 
C)  Cost of goods sold 
D)  Accounts receivable 
A)  Factory equipment depreciation 
B)  Cost of goods manufactured 
C)  Cost of goods sold 
D)  Accounts receivable

Question 2

Direct labour costs for Comfy Furniture Company totaled

Accepted Answer

A)  $300,000. 
B)  $132,500. 
C)  $115,000. 
D)  $323,000. 
A)  $300,000. 
B)  $132,500. 
C)  $115,000. 
D)  $323,000.

Question 3

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 manufactured at Sunnydale Manufacturing?

Accepted Answer

A)  $1,560 
B)  $1,540 
C)  $1,580 
D)  $1,550 
A)  $1,560 
B)  $1,540 
C)  $1,580 
D)  $1,550

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 for the design category of the value chain at Farm Fresh Dairy?

Accepted Answer

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

Question 5

Providing customer service past the warrantee date can be part of incorporating environmental sustainability practices.

Accepted Answer

A) True 
 B)False

Question 6

Variable costs

Accepted Answer

A)  are fixed in total as production levels change. 
B)  are fixed per unit and vary in total as productions levels change. 
C)  decrease per unit as production volume increases. 
D)  vary per unit of output as production levels change. 
A)  are fixed in total as production levels change. 
B)  are fixed per unit and vary in total as productions levels change. 
C)  decrease per unit as production volume increases. 
D)  vary per unit of output as production levels change.

Question 7

A company which is in the business of providing intangible services is what type of company?

Accepted Answer

A)  Manufacturing 
B)  Service company 
C)  Retailer 
D)  Wholesaler 
A)  Manufacturing 
B)  Service company 
C)  Retailer 
D)  Wholesaler

Question 8

Use the information below to answer the following question(s).
Summerville Company sells office supplies. The following information summarizes the company's operating activities for the year:
  
-What is operating income at Summerville Company?

Accepted Answer

A)  $143,000 
B)  $43,000 
C)  $58,000 
D)  $47,000 
A)  $143,000 
B)  $43,000 
C)  $58,000 
D)  $47,000

Question 9

South State Company used $71,000 of direct materials and incurred $37,000 of direct labour costs during 2014. Indirect labour amounted to $2,700 while indirect materials used totaled $1,600. Other operating costs pertaining to the factory included utilities of $3,100; maintenance of $4,500; supplies of $1,800; depreciation expense of $7,900; and property taxes of $2,600. There was no beginning or ending finished goods inventory, but work in process inventory began they ear with a $5,500 balance and ended the year with a $7,500 balance.
Required: Prepare a schedule of cost of goods manufactured for South State Company for the year ended December 31.

Accepted Answer

The answer of South State Company used $71,000 of direct...

Question 10

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars. Which of the following costs is irrelevant to its decision?

Accepted Answer

A)  The cost per gallon of gasoline 
B)  The purchase price of the hybrid model 
C)  The purchase price of the gasoline-engine model 
D)  The book value of the current fleet of sales vehicles 
A)  The cost per gallon of gasoline 
B)  The purchase price of the hybrid model 
C)  The purchase price of the gasoline-engine model 
D)  The book value of the current fleet of sales vehicles

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 the beginning work-in-process inventory at Ontario Industries Inc.?

Accepted Answer

A)  $1,000 
B)  $5,000 
C)  $12,000 
D)  $6,000 
A)  $1,000 
B)  $5,000 
C)  $12,000 
D)  $6,000

Question 12

Inventoriable product costs for a manufactured product include

Accepted Answer

A)  marketing and research and development costs. 
B)  the costs of direct materials, direct labour and manufacturing overhead. 
C)  the costs of direct materials and direct labour only. 
D)  sales commissions on selling the product. 
A)  marketing and research and development costs. 
B)  the costs of direct materials, direct labour and manufacturing overhead. 
C)  the costs of direct materials and direct labour only. 
D)  sales commissions on selling the product.

Question 13

Indirect costs cannot be traced to the cost objects, so they are allocated.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following statements is correct concerning product costs?

Accepted Answer

A)  Product costs are expensed in the period incurred. 
B)  Product costs are expensed in the period the related product is sold. 
C)  Product costs are shown with operating expenses on the income statement. 
D)  Product costs are shown with current liabilities on the balance sheet. 
A)  Product costs are expensed in the period incurred. 
B)  Product costs are expensed in the period the related product is sold. 
C)  Product costs are shown with operating expenses on the income statement. 
D)  Product costs are shown with current liabilities on the balance sheet.

Question 15

An inventoriable cost could be the cost of the marketing and distribution of a product.

Accepted Answer

A) True 
 B)False

Question 16

A(n) ________ cost is one whose total amount changes in direct proportion to a change in volume.

Accepted Answer

A)  fixed 
B)  irrelevant 
C)  mixed 
D)  variable 
A)  fixed 
B)  irrelevant 
C)  mixed 
D)  variable

Question 17

Which of the following describes the way fixed costs per unit behave?

Accepted Answer

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

Question 18

Jansen Industries is considering replacing a machine that is presently used in its production process. The following information is available:   Which of the information provided in the table is irrelevant to the replacement decision?

Accepted Answer

A)  The annual operating cost of the old machine 
B)  The original cost of the old machine 
C)  The current disposal value of the old machine 
D)  The future disposal value of the replacement machine 
E)  The remaining useful life of the old machine 
A)  The annual operating cost of the old machine 
B)  The original cost of the old machine 
C)  The current disposal value of the old machine 
D)  The future disposal value of the replacement machine 
E)  The remaining useful life of the old machine

Question 19

The main difference in the balance sheets of manufacturing vs. service business is in

Accepted Answer

A)  current assets. 
B)  current liabilities. 
C)  investments. 
D)  equity. 
A)  current assets. 
B)  current liabilities. 
C)  investments. 
D)  equity.

Question 20

In a manufacturing plant, which type of employee wage is an example of indirect labour?

Accepted Answer

A)  Chief operating officer's salary 
B)  Machine operator's wages 
C)  Plant manager's salary 
D)  Salesperson's commissions 
A)  Chief operating officer's salary 
B)  Machine operator's wages 
C)  Plant manager's salary 
D)  Salesperson's commissions

Which of the following would be on the balance sheet of a service company?

Direct labour costs for Comfy Furniture Company totaled

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 manufactured at Sunnydale Manufacturing?

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 design category of the value chain at Farm Fresh Dairy?

Providing customer service past the warrantee date can be part of incorporating environmental sustainability practices.

Variable costs

A company which is in the business of providing intangible services is what type of company?

Use the information below to answer the following question(s). Summerville Company sells office supplies. The following information summarizes the company's operating activities for the year: -What is operating income at Summerville Company?

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars. Which of the following costs is irrelevant to its decision?

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 the beginning work-in-process inventory at Ontario Industries Inc.?

Inventoriable product costs for a manufactured product include

Indirect costs cannot be traced to the cost objects, so they are allocated.

Which of the following statements is correct concerning product costs?

An inventoriable cost could be the cost of the marketing and distribution of a product.

A(n) ________ cost is one whose total amount changes in direct proportion to a change in volume.

Which of the following describes the way fixed costs per unit behave?

Jansen Industries is considering replacing a machine that is presently used in its production process. The following information is available: Which of the information provided in the table is irrelevant to the replacement decision?

The main difference in the balance sheets of manufacturing vs. service business is in

In a manufacturing plant, which type of employee wage is an example of indirect labour?

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 would be on the balance sheet of a service company?

Direct labour costs for Comfy Furniture Company totaled

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 manufactured at Sunnydale Manufacturing?

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 design category of the value chain at Farm Fresh Dairy?

Providing customer service past the warrantee date can be part of incorporating environmental sustainability practices.

Variable costs

A company which is in the business of providing intangible services is what type of company?

Use the information below to answer the following question(s). Summerville Company sells office supplies. The following information summarizes the company's operating activities for the year: -What is operating income at Summerville Company?

A company is deciding whether to purchase hybrid cars for its salespeople or gasoline-engine cars. Which of the following costs is irrelevant to its decision?

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 the beginning work-in-process inventory at Ontario Industries Inc.?

Inventoriable product costs for a manufactured product include

Indirect costs cannot be traced to the cost objects, so they are allocated.

Which of the following statements is correct concerning product costs?

An inventoriable cost could be the cost of the marketing and distribution of a product.

A(n) ________ cost is one whose total amount changes in direct proportion to a change in volume.

Which of the following describes the way fixed costs per unit behave?

Jansen Industries is considering replacing a machine that is presently used in its production process. The following information is available: Which of the information provided in the table is irrelevant to the replacement decision?

The main difference in the balance sheets of manufacturing vs. service business is in

In a manufacturing plant, which type of employee wage is an example of indirect labour?

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