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| 1 | |
Which one of the following costs would not be considered an indirect cost of serving a particular customer at a Subway 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 bread used to make the sub sandwich that is ordered. |
| | D) | The cost of lighting and heating the restaurant. |
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| 2 | |
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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| | A) | A |
| | B) | B |
| | C) | C |
| | D) | D |
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| 3 | |
The salary of the chief financial officer 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 Rexman Corporation for the just completed year.
| Raw materials inventory, beginning | $ 160 | | Raw materials inventory, ending | 280 | | Work in process inventory, beginning | 280 | | Work in process inventory, ending | 200 | | Finished goods inventory, beginning | 480 | | Finished goods inventory, ending | 640 | | Administrative expenses | 600 | | Direct labor | 800 | | Manufacturing overhead | 920 | | Purchases of raw materials | 480 | | Sales | 3,960 | | Selling expenses | 560 |
The cost of the raw materials used in production during the year (in thousands of dollars) was: |
| | A) | $360. |
| | B) | $600. |
| | C) | $640. |
| | D) | $760. |
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| 6 | |
The following data (in thousands of dollars) have been taken from the accounting records of Rexman Corporation for the just completed year.
| Raw materials inventory, beginning | $ 160 | | Raw materials inventory, ending | 280 | | Work in process inventory, beginning | 280 | | Finished goods inventory, beginning | 480 | | Finished goods inventory, ending | 640 | | Work in process inventory, ending | 200 | | Administrative expenses | 600 | | Direct labor | 800 | | Manufacturing overhead | 920 | | Purchases of raw materials | 480 | | Sales | 3,960 | | Selling expenses | 560 |
(The above data is the same as that provided in the previous question.) The cost of goods manufactured (finished) for the year (in thousands of dollars) was: |
| | A) | $2,000. |
| | B) | $2,080. |
| | C) | $2,160. |
| | D) | $2,360. |
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| 7 | |
The following data (in thousands of dollars) have been taken from the accounting records of Rexman Corporation for the just completed year.
| Raw materials inventory, beginning | $ 160 | | Raw materials inventory, ending | 280 | | Work in process inventory, beginning | 280 | | Work in process inventory, ending | 200 | | Finished goods inventory, beginning | 480 | | Finished goods inventory, ending | 640 | | Administrative expenses | 600 | | Direct labor | 800 | | Manufacturing overhead | 920 | | Purchases of raw materials | 480 | | Sales | 3,960 | | Selling expenses | 560 |
(The above data is the same as that provided in the previous question.) The cost of goods sold for the year (in thousands of dollars) was: |
| | A) | $2,000. |
| | B) | $2,320. |
| | C) | $2,640. |
| | D) | $2,800. |
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| 8 | |
The following data (in thousands of dollars) have been taken from the accounting records of Rexman Corporation for the just completed year.
| Raw materials inventory, beginning | $ 160 | | Raw materials inventory, ending | 280 | | Work in process inventory, beginning | 280 | | Work in process inventory, ending | 200 | | Finished goods inventory, beginning | 480 | | Finished goods inventory, ending | 640 | | Administrative expenses | 600 | | Direct labor | 800 | | Manufacturing overhead | 920 | | Purchases of raw materials | 480 | | Sales | 3,960 | | Selling expenses | 560 |
(The above data is the same as that provided in the previous question.) The net income for the year (in thousands of dollars) was: |
| | A) | $600. |
| | B) | $800. |
| | C) | $1,000. |
| | D) | $1,960. |
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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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