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1 | |
The wages of materials handling personnel in a factory would usually be considered: Indirect labor/Manufacturing overhead |
| | A) | No/Yes |
| | B) | Yes/No |
| | C) | Yes/Yes |
| | D) | No/No |
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2 | |
Which one of the following costs would not be considered an indirect cost of serving a particular customer at a Pizza Hut franchise? |
| | A) | The salary of the franchise's manager. |
| | B) | The cost of the tables and chairs used to furnish the restaurant. |
| | C) | The cost of the dough used to make the pizza that is ordered. |
| | D) | The cost of lighting and heating the restaurant. |
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3 | |
The salary of the vice president of finance would be considered a(n): |
| | A) | manufacturing cost. |
| | B) | product cost. |
| | C) | administrative cost. |
| | D) | selling expense. |
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4 | |
If the cost of goods manufactured is greater than the cost of goods sold, then: |
| | A) | work in process inventory has decreased during the period. |
| | B) | finished goods inventory has increased during the period. |
| | C) | total manufacturing costs must be greater than cost of goods manufactured. |
| | D) | finished goods inventory has decreased during the period. |
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5 | |
The following data (in thousands of dollars) have been taken from the accounting records of Casey Corporation for the just completed year. | Administrative expenses | $ 300 | | Direct labor | 400 | | Finished goods inventory, beginning | 240 | | Finished goods inventory, ending | 320 | | Manufacturing overhead | 460 | | Purchases of raw materials | 240 | | Raw materials inventory, beginning | 80 | | Raw materials inventory, ending | 140 | | Sales | 1,980 | | Selling expenses | 280 | | Work in process inventory, beginning | 140 | | Work in process inventory, ending | 100 |
The cost of the raw materials used in production during the year (in thousands of dollars) was: |
| | A) | $180. |
| | B) | $300. |
| | C) | $320. |
| | D) | $380. |
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6 | |
The following data (in thousands of dollars) have been taken from the accounting records of Casey Corporation for the just completed year. | Administrative expenses | $ 300 | | Direct labor | 400 | | Finished goods inventory, beginning | 240 | | Finished goods inventory, ending | 320 | | Manufacturing overhead | 460 | | Purchases of raw materials | 240 | | Raw materials inventory, beginning | 80 | | Raw materials inventory, ending | 140 | | Sales | 1,980 | | Selling expenses | 280 | | Work in process inventory, beginning | 140 | | Work in process inventory, ending | 100 |
The cost of goods manufactured (finished) for the year (in thousands of dollars) was: |
| | A) | $1,000. |
| | B) | $1,040. |
| | C) | $1,080. |
| | D) | $1,180. |
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7 | |
The following data (in thousands of dollars) have been taken from the accounting records of Casey Corporation for the just completed year. | Administrative expenses | $ 300 | | Direct labor | 400 | | Finished goods inventory, beginning | 240 | | Finished goods inventory, ending | 320 | | Manufacturing overhead | 460 | | Purchases of raw materials | 240 | | Raw materials inventory, beginning | 80 | | Raw materials inventory, ending | 140 | | Sales | 1,980 | | Selling expenses | 280 | | Work in process inventory, beginning | 140 | | Work in process inventory, ending | 100 |
The cost of goods sold for the year (in thousands of dollars) was: |
| | A) | $1,000. |
| | B) | $1,160. |
| | C) | $1,320. |
| | D) | $1,400. |
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8 | |
The following data (in thousands of dollars) have been taken from the accounting records of Casey Corporation for the just completed year. | Administrative expenses | $ 300 | | Direct labor | 400 | | Finished goods inventory, beginning | 240 | | Finished goods inventory, ending | 320 | | Manufacturing overhead | 460 | | Purchases of raw materials | 240 | | Raw materials inventory, beginning | 80 | | Raw materials inventory, ending | 140 | | Sales | 1,980 | | Selling expenses | 280 | | Work in process inventory, beginning | 140 | | Work in process inventory, ending | 100 |
The net income for the year (in thousands of dollars) was: |
| | A) | $300. |
| | B) | $400. |
| | C) | $500. |
| | D) | $980. |
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9 | |
Within the relevant range: |
| | A) | both total variable costs and total fixed costs will remain constant. |
| | B) | both total variable costs and total fixed costs fluctuate. |
| | C) | fixed costs per unit will remain constant and variable costs per unit will fluctuate. |
| | D) | variable costs per unit will remain constant and fixed costs per unit will fluctuate. |
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10 | |
An opportunity cost is: |
| | A) | the difference between the total cost of one alternative and the total cost of another alternative. |
| | B) | the benefit forgone when one alternative is selected rather than another. |
| | C) | a cost that is saved by not adopting a given alternative. |
| | D) | a cost that continues to be incurred even when there is no activity. |
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