Question 1

The corporate controller's salary would be considered a(n):

Accepted Answer

A)  manufacturing cost. 
B)  product cost. 
C)  administrative cost. 
D)  selling expense. 
A)  manufacturing cost. 
B)  product cost. 
C)  administrative cost. 
D)  selling expense.

Question 2

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

Accepted Answer

A)  Product cost 
B)  Manufacturing overhead 
C)  Period cost 
D)  Administrative cost 
A)  Product cost 
B)  Manufacturing overhead 
C)  Period cost 
D)  Administrative cost

Question 3

Derflinger Corporation reported the following data for the month of January:  
-The cost of goods manufactured for January was:

Accepted Answer

A)  $176,000 
B)  $172,000 
C)  $175,000 
D)  $177,000 
A)  $176,000 
B)  $172,000 
C)  $175,000 
D)  $177,000

Question 4

Williams Company's direct labor cost is 25% of its conversion cost. If the manufacturing overhead for the last period was $45,000 and the direct materials cost was $25,000, the direct labor cost was:

Accepted Answer

A)  $15,000 
B)  $60,000 
C)  $33,333 
D)  $20,000 
A)  $15,000 
B)  $60,000 
C)  $33,333 
D)  $20,000

Question 5

Cromuel Corporation has provided the following data for January. The beginning balance in the raw materials inventory account was $27,000. During the month, the company made raw materials purchases amounting to $50,000. At the end of the month, the balance in the raw materials inventory account was $24,000. Direct labor cost was $53,000 and manufacturing overhead was $70,000. The beginning balance in the work in process account was $14,000 and the ending balance was $12,000. The beginning balance in the finished goods account was $33,000 and the ending balance was $51,000. Sales totaled $270,000. Selling expense was $21,000 and administrative expense was $48,000.
-The net operating income for January was:

Accepted Answer

A)  $41,000 
B)  $78,000 
C)  $110,000 
D)  $28,000 
A)  $41,000 
B)  $78,000 
C)  $110,000 
D)  $28,000

Question 6

Lavell Corporation reported the following data for the month of February:  
-The net operating income for February was:

Accepted Answer

A)  $20,000 
B)  $116,000 
C)  $86,000 
D)  $60,000 
A)  $20,000 
B)  $116,000 
C)  $86,000 
D)  $60,000

Question 7

Henscheid Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 33,000 units, the lease cost was $283,800.
-To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 31,600 units in a month? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A)  $8.04 
B)  $8.98 
C)  $8.79 
D)  $8.60 
A)  $8.04 
B)  $8.98 
C)  $8.79 
D)  $8.60

Question 8

Corcetti Company manufactures and sells prewashed denim jeans. Large rolls of denim cloth are purchased and are first washed in a giant washing machine. After the cloth is dried, it is cut up into jean pattern shapes and then sewn together. The completed jeans are sold to various retail chains.
-Which of the following terms could be used to correctly describe the wages paid to the data entry clerk who enters customer order information into the company's computer system?

Accepted Answer

A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D 
A)  Choice A 
B)  Choice B 
C)  Choice C 
D)  Choice D

The corporate controller's salary would be considered a(n):

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

Derflinger Corporation reported the following data for the month of January: -The cost of goods manufactured for January was:

Williams Company's direct labor cost is 25% of its conversion cost. If the manufacturing overhead for the last period was $45,000 and the direct materials cost was $25,000, the direct labor cost was:

Lavell Corporation reported the following data for the month of February: -The net operating income for February was:

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

Filters

Exam 2: Managerial Accounting and Cost Concepts

The corporate controller's salary would be considered a(n):

Transportation costs incurred by a manufacturing company to ship its product to its customers would be classified as which of the following?

Derflinger Corporation reported the following data for the month of January: -The cost of goods manufactured for January was:

Williams Company's direct labor cost is 25% of its conversion cost. If the manufacturing overhead for the last period was $45,000 and the direct materials cost was $25,000, the direct labor cost was:

Lavell Corporation reported the following data for the month of February: -The net operating income for February was:

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

Filters