Question 1

Managerial accounting is primarily concerned with the organization as a whole rather than with segments of the organization.

Accepted Answer

A) True 
 B)False  False

Question 2

Using the following data for August, calculate the cost of goods manufactured:  
The cost of goods manufactured was:

Accepted Answer

A)  $106,000 
B)  $92,000 
C)  $95,000 
D)  $89,000 
A)  $106,000 
B)  $92,000 
C)  $95,000 
D)  $89,000 D

Question 3

Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed:  
-The balance of the finished goods inventory at the end of the year was:

Accepted Answer

A)  $95,000 
B)  $50,000 
C)  $193,000 
D)  $45,000 
A)  $95,000 
B)  $50,000 
C)  $193,000 
D)  $45,000 B

Question 4

An opportunity cost is:

Accepted Answer

A)  the difference in total costs which results from selecting one alternative instead of another. 
B)  the benefit forgone by selecting one alternative instead of another. 
C)  a cost which may be saved by not adopting an alternative. 
D)  a cost which may be shifted to the future with little or no effect on current operations. 
A)  the difference in total costs which results from selecting one alternative instead of another. 
B)  the benefit forgone by selecting one alternative instead of another. 
C)  a cost which may be saved by not adopting an alternative. 
D)  a cost which may be shifted to the future with little or no effect on current operations.

Question 5

A partial listing of costs incurred during February at Urfer Corporation appears below:  
-The total of the product costs listed above for February is:

Accepted Answer

A)  $277,000 
B)  $595,000 
C)  $318,000 
D)  $61,000 
A)  $277,000 
B)  $595,000 
C)  $318,000 
D)  $61,000

Question 6

Gabrisch Inc. is a merchandising company. Last month the company's merchandise purchases totaled $90,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?

Accepted Answer

A)  $90,000 
B)  $99,000 
C)  $125,000 
D)  $81,000 
A)  $90,000 
B)  $99,000 
C)  $125,000 
D)  $81,000

Question 7

In a manufacturing firm, all costs are product costs.

Accepted Answer

A) True 
 B)False

Question 8

If the finished goods inventory increases between the beginning and the end of a period, then the cost of goods manufactured for the period is larger than the cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 9

At a sales volume of 36,000 units, Quale Corporation's sales commissions (a cost that is variable with respect to sales volume) total $187,200.
-To the nearest whole dollar, what should be the total sales commissions at a sales volume of 38,300 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A)  $199,160 
B)  $175,958 
C)  $193,180 
D)  $187,200 
A)  $199,160 
B)  $175,958 
C)  $193,180 
D)  $187,200

Question 10

Gluth Corporation has provided the following data for the month of July. The beginning balance in the finished goods inventory account was $56,000 and the ending balance was $49,000. Sales totaled $290,000. Cost of goods manufactured was $147,000, selling expense was $17,000, and administrative expense was $68,000.
-The net operating income for July was:

Accepted Answer

A)  $58,000 
B)  $143,000 
C)  $150,000 
D)  $51,000 
A)  $58,000 
B)  $143,000 
C)  $150,000 
D)  $51,000

Question 11

Tator Corporation reported the following data for the month of April:  
-The net operating income for April was:

Accepted Answer

A)  $22,000 
B)  $81,000 
C)  $46,000 
D)  $104,000 
A)  $22,000 
B)  $81,000 
C)  $46,000 
D)  $104,000

Question 12

Which of the following IS a characteristic of financial accounting?

Accepted Answer

A)  not mandatory 
B)  must follow GAAP 
C)  emphasis on relevance of data, rather than precision 
D)  both A and C above 
A)  not mandatory 
B)  must follow GAAP 
C)  emphasis on relevance of data, rather than precision 
D)  both A and C above

Question 13

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year.  
-The net operating income for the year (in thousands of dollars) was:

Accepted Answer

A)  $410 
B)  $110 
C)  $40 
D)  $180 
A)  $410 
B)  $110 
C)  $40 
D)  $180

Question 14

The variable cost per unit is constant and does not depend on how many units are produced.

Accepted Answer

A) True 
 B)False

Question 15

Buford Company rents out a small unused portion of its factory to another company for $1,000 per month. The rental agreement will expire next month, and rather than renew the agreement Buford Company is thinking about using the space itself to store materials. The term to describe the $1,000 per month is:

Accepted Answer

A)  sunk cost. 
B)  period cost. 
C)  opportunity cost. 
D)  variable cost. 
A)  sunk cost. 
B)  period cost. 
C)  opportunity cost. 
D)  variable cost.

Question 16

A number of costs and measures of activity are listed below.   
Required:
For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.

Accepted Answer

The answer of A number of costs and measures of...

Question 17

The following cost data pertain to the operations of Lefthand Department Stores, Inc., for the month of December.   The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores.
-What is the total amount of the costs listed above that are direct costs of the Shoe Department?

Accepted Answer

A)  $43,000 
B)  $35,000 
C)  $79,000 
D)  $40,000 
A)  $43,000 
B)  $35,000 
C)  $79,000 
D)  $40,000

Question 18

During the month of January, Fisher Corporation, a manufacturing company, purchased raw materials costing $76,000. The cost of goods manufactured for the month was $129,000. The beginning balance in the raw materials account was $26,000 and the ending balance was $21,000. The beginning balance in the finished goods account was $52,000 and the ending balance was $35,000.
Required:
a. What was the cost of raw materials used in production during January? Show your work.
b. What was the cost of goods sold for January? Show your work.

Accepted Answer

The answer of During the month of January, Fisher Corporation,...

Question 19

A partial listing of costs incurred during February at Urfer Corporation appears below:  
-The total of the period costs listed above for February is:

Accepted Answer

A)  $379,000 
B)  $277,000 
C)  $61,000 
D)  $318,000 
A)  $379,000 
B)  $277,000 
C)  $61,000 
D)  $318,000

Question 20

The CFO of Stoffer Corporation has provided the following data for October. The beginning balance in the raw materials inventory account was $39,000. During the month, the company made raw materials purchases amounting to $68,000. At the end of the month, the balance in the raw materials inventory account was $28,000. Direct labor cost was $29,000 and manufacturing overhead was $78,000. The beginning balance in the work in process account was $11,000 and the ending balance was $13,000. The beginning balance in the finished goods account was $37,000 and the ending balance was $47,000. Sales totaled $240,000. Selling expense was $21,000 and administrative expense was $27,000.
-The cost of goods sold for October was:

Accepted Answer

A)  $194,000 
B)  $230,000 
C)  $128,000 
D)  $174,000 
A)  $194,000 
B)  $230,000 
C)  $128,000 
D)  $174,000

Exam 2: Managerial Accounting and Cost Concepts

Managerial accounting is primarily concerned with the organization as a whole rather than with segments of the organization.

Using the following data for August, calculate the cost of goods manufactured: The cost of goods manufactured was:

Geneva Steel Corporation produces large sheets of heavy gauge steel. The company showed the following amounts relating to its production for the year just completed: -The balance of the finished goods inventory at the end of the year was:

An opportunity cost is:

A partial listing of costs incurred during February at Urfer Corporation appears below: -The total of the product costs listed above for February is:

Gabrisch Inc. is a merchandising company. Last month the company's merchandise purchases totaled $90,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?

In a manufacturing firm, all costs are product costs.

If the finished goods inventory increases between the beginning and the end of a period, then the cost of goods manufactured for the period is larger than the cost of goods sold.

Tator Corporation reported the following data for the month of April: -The net operating income for April was:

Which of the following IS a characteristic of financial accounting?

The following data (in thousands of dollars) have been taken from the accounting records of Karlana Corporation for the just completed year. -The net operating income for the year (in thousands of dollars) was:

The variable cost per unit is constant and does not depend on how many units are produced.

A number of costs and measures of activity are listed below. Required: For each item above, indicate whether the cost is MAINLY fixed or variable with respect to the possible measure of activity listed next to it.

A partial listing of costs incurred during February at Urfer Corporation appears below: -The total of the period costs listed above for February is:

Managerial Accounting and the Business Environment

Systems Design: Job-Order Costing

Systems Design: Process Costing

Cost Behavior Analysis and Use

Cost-Volume-Profit Relationship

Variable Costing: a Tool for Management

Activity Based Costing: a Tool to Aid Decision-Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Operating Performance Measures

Segment Reporting, Decentralization, and the Balanced Scorecard

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Pricing Products and Services

Profitability Analysis

Further Classification of Labor Costs

Cost of Quality

the Predetermined Overhead Rate and Capacity

Fifo Method

Service Department Allocations

Least-Squares Regression Computations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to

Predetermined Overhead Rates and Overhead Analysis

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

The Direct Method of Determining the Net Cash Provided by

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