Managerial Exam Flashcards
What inventory accounts appear on the balance sheet of a merchandising company?
-Raw materials, works in process, finsihed goods
-Merchandise inventory, and work in process
-work in process, finished goods
-merchandise inventory
Merchandise Inventory
Direct labor and direct material combined
Prime Cost
Direct labor and manufacturing overhead
Conversion costs
Outlays that can be easily identified to a particular cost object
Direct Cost
Expenditures that are not directly associated with the production of a product, such as advertising costs and general administrative costs.
Period costs
The cost of compensation provided to employees besides the employees salaries and wages
Fringe Benefits
Raw Materials, inventory, works in process inventory, and finished goods are considered to be
Inventoriable Costs
What inventory accounts appear on the balance sheet of a manufacturer?
-Raw materials, works in process
-merchandise inventory, work in process, finished goods
-Work in process, raw materials, finished goods
-work in process, finished goods
Work in process, raw materials and finished goods
You and two friends decide to rent an apartment off campus. You have found an apartment for $750 per month. You and your friends will share the rent equally. This is an example of a
-Fixed Cost
-Sunk Cost
-Product Cost
-Variable Cost
Fixed Cost
Variable Costs
-are not subject to inflationary pressures
-decrease in total as volume increase
-stay the same in total as volume increase
-stay the same per unit as volume increases
Stat the same per unit as volume increases
Costs and benefits that are the same for all alternatives being considered are
-fixed
-variable
-relevant
-irrelevant
Irrelevant
Which of the following is a characteristic of a fixed cost?
-The Cost per unit varies inversely with changes in the level of activity
-The total cost remains constant, regardless of changes in the level of activity
-Both answers are correct
-neither answer is correct
Both answers are correct
