Question 1

A company decision as to where to locate a new store would be considered

Accepted Answer

A)  customer service.
B)  marketing.
C)  production.
D)  research and development.

Question 2

Match between columns
                        Premises: Indirect materials used in factory
Depreciation expense on factory machinery
Salary of plant manager
Supplies used in store
Plant insurance expired
Factory utilities
Direct labour incurred in factory
Salespersons' commissions
Advertising expense
Indirect labour incurred in factory
Depreciation expense on store equipment
Direct materials used in factory
Factory machinery repairs and maintenance

Accepted Answer

The Answer of Product and Period is...

Question 3

Manufacturers consider selling and administrative costs to be

Accepted Answer

A)  prime costs.
B)  conversion costs.
C)  inventoriable costs.
D)  period costs.

Question 4

Conversion costs for Comfy Furniture Company totaled

Accepted Answer

A)  $319,500.
B)  $460,500.
C)  $214,000.
D)  $384,500.

Question 5

A company has fixed costs of $75,000 per month.If sales double from 5,000 to 10,000
Units during the month,fixed costs will

Accepted Answer

A)  remain the same.
B)  double.
C)  be cut in half.
D)  increase slightly.

Question 6

Where would period costs be found on the financial statements?

Accepted Answer

A)  Under current assets on the balance sheet
B)  Under current liabilities on the balance sheet
C)  As operating expenses on the income statement for a previous period
D)  As operating expenses on the income statement in the period incurred

Question 7

Certain item descriptions and amounts are missing from the monthly schedule of cost of goods
manufactured below and the income statement of HiHoist Manufacturing.Fill in the missing
items.

Accepted Answer

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Question 8

Service companies have the simplest accounting with regard to the income statement.

Accepted Answer

A) True 
 B)False

Question 9

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.

Question 10

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

Question 11

Depreciation on a factory would be classified as a cost in which part of the value chain?

Accepted Answer

A)  Design
B)  Distribution
C)  Production
D)  Research and development

Question 12

The total prime costs for Bombardeer are

Accepted Answer

A)  $4,380.
B)  $4,510.
C)  $4,455.
D)  $3,040.

Question 13

All of the components of manufacturing-from research and development through customer service after the sale-are part of a firm's value chain.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is an inventoriable cost?

Accepted Answer

A)  Direct labour expenses
B)  Distribution expenses
C)  Marketing expenses
D)  Research and development expenses

Question 15

The total inventoriable product costs costs for Bombardeer are

Accepted Answer

A)  $3,840.
B)  $4,120.
C)  $5,195.
D)  $5,325.

Question 16

What is the cost of goods sold for the year at the Olde Tyme Beverage Company?

Accepted Answer

A)  $144,000
B)  $132,000
C)  $128,000
D)  $63,000

Question 17

Which of the following,in addition to cost of goods manufactured,is needed to compute the cost of goods sold for a manufacturer?

Accepted Answer

A)  Beginning work in process inventory less ending work in process inventory
B)  Ending work in process inventory less beginning work in process inventory
C)  Beginning finished goods less ending finished goods
D)  Ending finished goods less beginning finished goods

Question 18

What is gross profit at Summerville Company?

Accepted Answer

A)  $43,000
B)  $82,000
C)  $74,000
D)  $58,000

Question 19

Which of the following costs could be found in work in process inventory for an ice cream manufacturer?

Accepted Answer

A)  Utilities for administrative offices
B)  Assembly worker wages
C)  Depreciation on sales office
D)  Customer order forms

Question 20

The activities in the value chain must take place in a specific order.

Accepted Answer

A) True 
 B)False

Exam 2: Building Blocks of Managerial Accounting

Which of the following is an inventoriable cost?

Correct Answer
verified

Inventoriable product costs for a manufactured product include

Correct Answer
verified

Depreciation on a factory would be classified as a cost in which part of the value chain?

Correct Answer
verified

Conversion costs for Comfy Furniture Company totaled

Correct Answer
verified

What is gross profit at Summerville Company?

Correct Answer
verified

Which of the following costs could be found in work in process inventory for an ice cream manufacturer?

Correct Answer
verified

Which of the following,in addition to cost of goods manufactured,is needed to compute the cost of goods sold for a manufacturer?

Correct Answer
verified

What is the cost of goods sold for the year at the Olde Tyme Beverage Company?

Correct Answer
verified

All of the components of manufacturing-from research and development through customer service after the sale-are part of a firm's value chain.

Correct Answer
verified

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

Correct Answer
verified

Match the following:

Where would period costs be found on the financial statements?

Correct Answer
verified

Manufacturers consider selling and administrative costs to be

Correct Answer
verified

The activities in the value chain must take place in a specific order.

Correct Answer
verified

A company decision as to where to locate a new store would be considered

Correct Answer
verified

The total inventoriable product costs costs for Bombardeer are

Correct Answer
verified

Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured below and the income statement of HiHoist Manufacturing.Fill in the missing items.

Correct Answer
verified
_TB1765_00_TB1765_00_TB1765_00...
View Answer

A company has fixed costs of $75,000 per month.If sales double from 5,000 to 10,000 Units during the month,fixed costs will

Correct Answer
verified

Service companies have the simplest accounting with regard to the income statement.

Correct Answer
verified

The total prime costs for Bombardeer are

Correct Answer
verified

Exam 2: Building Blocks of Managerial Accounting

Which of the following is an inventoriable cost?

Correct AnswerverifiedShow Answer

Inventoriable product costs for a manufactured product include

Correct AnswerverifiedShow Answer

Depreciation on a factory would be classified as a cost in which part of the value chain?

Correct AnswerverifiedShow Answer

Conversion costs for Comfy Furniture Company totaled

Correct AnswerverifiedShow Answer

What is gross profit at Summerville Company?

Correct AnswerverifiedShow Answer

Which of the following costs could be found in work in process inventory for an ice cream manufacturer?

Correct AnswerverifiedShow Answer

Which of the following,in addition to cost of goods manufactured,is needed to compute the cost of goods sold for a manufacturer?

Correct AnswerverifiedShow Answer

What is the cost of goods sold for the year at the Olde Tyme Beverage Company?

Correct AnswerverifiedShow Answer

All of the components of manufacturing-from research and development through customer service after the sale-are part of a firm's value chain.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Match the following:

Where would period costs be found on the financial statements?

Correct AnswerverifiedShow Answer

Manufacturers consider selling and administrative costs to be

Correct AnswerverifiedShow Answer

The activities in the value chain must take place in a specific order.

Correct AnswerverifiedShow Answer

A company decision as to where to locate a new store would be considered

Correct AnswerverifiedShow Answer

The total inventoriable product costs costs for Bombardeer are

Correct AnswerverifiedShow Answer

Certain item descriptions and amounts are missing from the monthly schedule of cost of goods manufactured below and the income statement of HiHoist Manufacturing.Fill in the missing items.

Correct Answerverified_TB1765_00_TB1765_00_TB1765_00...View AnswerShow Answer

A company has fixed costs of $75,000 per month.If sales double from 5,000 to 10,000 Units during the month,fixed costs will

Correct AnswerverifiedShow Answer

Service companies have the simplest accounting with regard to the income statement.

Correct AnswerverifiedShow Answer

The total prime costs for Bombardeer are

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
_TB1765_00_TB1765_00_TB1765_00...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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