Question 1

Gross margin is the difference between sales revenue and cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 2

Select the appropriate definition of each of the items listed below.
-Covers a particular period of time

Accepted Answer

A) Income Statement 
B) Cost of goods manufactured 
C) Work in process 
D) Gross margin 
E) Operating income

Question 3

Period costs are all costs that are not product costs, such as office supplies.

Accepted Answer

A) True 
 B)False

Question 4

Select the appropriate definition for each of the items listed below.
-A cost that increases in total as output increases

Accepted Answer

A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost

Question 5

Last year, Buckner & Jones Company incurred the following costs: 
 
Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.Assume that beginning and ending inventories of materials, work in process, and finished goods were zero.
-
The total product costs were:

Accepted Answer

A)  $199,500. 
B)  $100,000. 
C)  $150,000. 
D)  $236,000.

Question 6

Select the appropriate classification of the output generated by each of the following industries.
-Medical clinic

Accepted Answer

A) Tangible 
B) Intangible

Question 7

Select the appropriate definition for each of the items listed below.
-A manufacturing cost

Accepted Answer

A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost

Question 8

Knowles & Foreman Company took the following data from its income statement at the end of the current year: 
- What was cost of goods sold for the year?

Accepted Answer

A)  $58,800 
B)  $40,600 
C)  $100,000 
D)  None of these

Question 9

A cost object is any item such as products, customers, departments, regions, and so on, for which costs are measured and assigned.

Accepted Answer

A) True 
 B)False

Question 10

Select the appropriate definition for each of the items listed below.
-(direct materials + direct labor + overhead) +/− the change in work in process inventory from the beginning to the end of the current period

Accepted Answer

A) Work in process inventory 
B) Finished goods inventory 
C) Cost of goods sold 
D) Cost of goods manufactured 
E) Total manufacturing costs

Question 11

______________________ is the sum of direct labor cost and manufacturing overhead cost.

Accepted Answer

The answer of ______________________ is the sum of direct labor...

Question 12

Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

Accepted Answer

A) True 
 B)False

Question 13

A cost object is something for which a company wants to know the cost.

Accepted Answer

A) True 
 B)False

Question 14

Select the appropriate definition for each of the items listed below.
-(direct materials + direct labor)/units produced

Accepted Answer

A) per-unit prime cost 
B) per-unit conversion cost 
C) per-unit cost of goods manufactured

Question 15

Select the appropriate definition for each of the items listed below.
-A cost that stays the same in total regardless of changes in output

Accepted Answer

A) period cost 
B) direct cost 
C) opportunity cost 
D) variable cost 
E) indirect cost
F)fixed cost
G)product cost

Question 16

If beginning work-in-process inventory is $120,000, ending work-in-process inventory is $160,000, cost of goods manufactured is $400,000 and direct materials used are $100,000, what are the conversion costs?

Accepted Answer

A)  $140,000 
B)  $280,000 
C)  $300,000 
D)  $340,000

Exam 2: Basic Managerial Accounting Concepts

Gross margin is the difference between sales revenue and cost of goods sold.

Select the appropriate definition of each of the items listed below. -Covers a particular period of time

Period costs are all costs that are not product costs, such as office supplies.

Select the appropriate definition for each of the items listed below. -A cost that increases in total as output increases

Last year, Buckner & Jones Company incurred the following costs: Buckner & Jones produced and sold 2,060 units at a sales price of $131.25 each.Assume that beginning and ending inventories of materials, work in process, and finished goods were zero. - The total product costs were:

Select the appropriate classification of the output generated by each of the following industries. -Medical clinic

Select the appropriate definition for each of the items listed below. -A manufacturing cost

Knowles & Foreman Company took the following data from its income statement at the end of the current year: - What was cost of goods sold for the year?

A cost object is any item such as products, customers, departments, regions, and so on, for which costs are measured and assigned.

Select the appropriate definition for each of the items listed below. -(direct materials + direct labor + overhead) +/− the change in work in process inventory from the beginning to the end of the current period

______________________ is the sum of direct labor cost and manufacturing overhead cost.

Reducing the cost required to achieve a given benefit means that a company is becoming less efficient.

A cost object is something for which a company wants to know the cost.

Select the appropriate definition for each of the items listed below. -(direct materials + direct labor) /units produced

Select the appropriate definition for each of the items listed below. -A cost that stays the same in total regardless of changes in output

If beginning work-in-process inventory is $120,000, ending work-in-process inventory is $160,000, cost of goods manufactured is $400,000 and direct materials used are $100,000, what are the conversion costs?