Question 1

Classify each of the following business costs into one of the six value chain elements.
A.cost of a commercial during a TV program
B.cost of shipping goods to customers
C.costs associated with repairing products under warranty
D.costs of developing a new product
E.cost of making a prototype of a new product
F.cost of labor for machine operator in factory

Accepted Answer

The answer of Classify each of the following business costs...

Question 2

The value chain is used by

Accepted Answer

A) service,manufacturing,and merchandising businesses. 
B) only service and manufacturing businesses. 
C) only service and merchandising businesses. 
D) only manufacturing and merchandising businesses.

Question 3

Paper Clip Company sells office supplies.The following information summarizes the company's operating activities for the year:

What are total operating expenses?

Accepted Answer

A) $33,000 
B) $19,500 
C) $23,500 
D) $23,000

Question 4

Toshiba Corporation makes computer chips.Toshiba Corporation would be classified as a

Accepted Answer

A) merchandising company. 
B) manufacturing company. 
C) service company. 
D) simple company.

Question 5

Before these materials are used to manufacture cabinets,a woodworker classifies lumber,paint,and glue as

Accepted Answer

A) finished goods inventory. 
B) work in process inventory. 
C) raw materials inventory. 
D) merchandise inventory.

Question 6

Winner's Sporting Equipment manufactures sporting goods.Selected costs from the past year include:

Period costs for Winner's Sporting Equipment totaled

Accepted Answer

A) $91,000. 
B) $37,000. 
C) $188,000. 
D) $111,000.

Question 7

Service companies have the most complex accounting with regard to the income statement.

Accepted Answer

A) True 
 B)False

Question 8

How would Chevrolet classify its partially completed vehicles?

Accepted Answer

A) Finished goods inventory 
B) Raw materials inventory 
C) Work in process inventory 
D) Supplies inventory

Question 9

ABC Company makes wooden furniture.Identify each of the following as either an inventoriable product cost or a period cost.If it is an inventoriable product cost,classify it as direct materials,direct labor,or manufacturing overhead.

Accepted Answer

The answer of ABC Company makes wooden furniture.Identify each of...

Question 10

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's total variable costs will be

Accepted Answer

A) $154,000. 
B) $56,000. 
C) $210,000. 
D) $84,000.

Question 11

Selected financial information for Greek Food Producers is presented in the following table (000s omitted).

What was the cost of direct materials used?

Accepted Answer

A) $650 
B) $470 
C) $230 
D) $350

Question 12

Tuity Fruity Beverage Company's operating activities for the year are listed below.

What is the cost of goods sold for the year?

Accepted Answer

A) $152,000 
B) $134,000 
C) $140,000 
D) $80,000

Question 13

Period costs are

Accepted Answer

A) always recorded as an expense. 
B) always considered part of the inventory. 
C) expensed only when the inventory is sold. 
D) none of the above.

Question 14

Retailers sell their products to consumers.

Accepted Answer

A) True 
 B)False

Question 15

For a manufacturer,beginning work in process would be equal to

Accepted Answer

A) manufacturing costs incurred in the period - ending work in process inventory. 
B) cost of goods manufactured - ending work in process inventory + manufacturing costs incurred in the period. 
C) ending work in process inventory + manufacturing costs incurred in the period. 
D) cost of goods manufactured + ending work in process inventory - manufacturing costs incurred in the period.

Question 16

Sneider Family Orange Groves processes a variety of fresh juices.The company has the following expenses for July:

What is the total cost for the production category of the value chain?

Accepted Answer

A) $462,000 
B) $60,000 
C) $302,000 
D) $201,000

Question 17

The total cost of a product equals the total fixed costs plus the total variable costs.

Accepted Answer

A) True 
 B)False

Question 18

Stacy's Manufacturing Company manufactures parts to accommodate the needs of bicycle shops.The managerial accountant reported the following data:  
Compute the average manufacturing cost per unit.What is the amount of ending finished goods inventory?

Accepted Answer

The answer of Stacy's Manufacturing Company manufactures parts to accommodate...

Question 19

Sneider 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?

Accepted Answer

A) $75,000 
B) $78,000 
C) $63,000 
D) $197,000

Question 20

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 customer service category of the value chain?

Accepted Answer

A) $2,000 
B) $35,000 
C) $80,000 
D) $9,000

Exam 2: Building Blocks of Managerial Accounting

The value chain is used by

Paper Clip Company sells office supplies.The following information summarizes the company's operating activities for the year: What are total operating expenses?

Toshiba Corporation makes computer chips.Toshiba Corporation would be classified as a

Before these materials are used to manufacture cabinets,a woodworker classifies lumber,paint,and glue as

Winner's Sporting Equipment manufactures sporting goods.Selected costs from the past year include: Period costs for Winner's Sporting Equipment totaled

Service companies have the most complex accounting with regard to the income statement.

How would Chevrolet classify its partially completed vehicles?

ABC Company makes wooden furniture.Identify each of the following as either an inventoriable product cost or a period cost.If it is an inventoriable product cost,classify it as direct materials,direct labor,or manufacturing overhead.

London Plastics has monthly fixed costs of $84,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $15.00 and London Plastics sell 14,000 units,the company's total variable costs will be

Selected financial information for Greek Food Producers is presented in the following table (000s omitted) . What was the cost of direct materials used?

Tuity Fruity Beverage Company's operating activities for the year are listed below. What is the cost of goods sold for the year?

Period costs are

Retailers sell their products to consumers.

For a manufacturer,beginning work in process would be equal to

Sneider Family Orange Groves processes a variety of fresh juices.The company has the following expenses for July: What is the total cost for the production category of the value chain?

The total cost of a product equals the total fixed costs plus the total variable costs.

Stacy's Manufacturing Company manufactures parts to accommodate the needs of bicycle shops.The managerial accountant reported the following data: Compute the average manufacturing cost per unit.What is the amount of ending finished goods inventory?

Sneider 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?

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 customer service category of the value chain?