Acct Exam 3 lsu

Which of the following companies is likely to have the least formal budget process? a- Trending Fashions, a new business that is trying to get investment funding b- Betty's Bakery, a small-town bakery that has been open for three years c- Jet Ski Haven, a jet ski rental company with rental offices along the U.S. coasts d- Altman Industries, an international manufacturing company

Bettys Bakery

For a manufacturing company, how are the income statement and balance sheet similar? Both show the value of the ending work in process inventory. Both show the value of the beginning finished goods inventory. Both show the value of the ending finished goods inventory. Both show the value of manufacturing overhead.

Both show the value of the ending finished goods inventory.

Which one of the following is not an assumption of cost-volume-profit analysis? All costs can be classified as either variable or fixed. Changes in activity and sales mix are the only factors that affect costs. All units produced are sold. The behavior of costs is linear throughout the relevant range.

Changes in activity and sales mix are the only factors that affect costs.

Why is determination of a relevant range important? Costs that occur outside this range are assumed to be linear. Most companies operate at 100% of capacity. Costs outside this range cause losses to companies. Cost behavior outside the relevant range may be distorted.

Cost behavior outside the relevant range may be distorted.

Which of the following costs would be not expensed in the period incurred? Salary of the company treasurer Sales commissions paid to company salespeople Depreciation on computers used in the corporate offices Depreciation on furniture used in the factory lunchroom

Depreciation on furniture used in the factory lunchroom

Which of the following costs would a computer manufacturer include in manufacturing overhead? a- The cost of the memory chips. b- Depreciation on testing equipment. c- The wages earned by computer assemblers. d- The cost of the disk drives.

Depreciation on testing equipment.

Which of the following answer choices lists the three manufacturing costs? a- Raw materials, work in process, and finished goods b- Indirect materials, indirect labor, and factory-related costs c- Direct materials, direct labor, and manufacturing overhead d- Work in process, finished goods, and cost of goods sold

Direct materials, direct labor, and manufacturing overhead

1) At the break-even point, fixed costs are: a. Less than the contribution margin. b. Equal to the contribution margin. c. More than the contribution margin. d. Indeterminate of the contribution margin.

Equal to the contribution margin.

Which of the following statements is true about managerial accounting? a- It is primarily for internal users such as stockholders and managers. b- It pertains to a business as a whole. c- It must be prepared using generally accepting accounting principles. d- It provides more detailed information than financial accounting does.

It provides more detailed information than financial accounting does.

Jamison Trucking charges clients $1.82 per mile to pick up, haul, and deliver cargo loads. Of this cost, 62% goes to pay the driver. In contrast, Holliwell Industries charges customers $83.00 for one box of 10 bath towels. Of this cost, 13% goes to pay production workers. What is the difference between Jamison Trucking and Holliwell Industries? a. Jamison Trucking is a merchandising company, whereas Holliwell Industries is a manufacturing company. b. Jamison Trucking is a manufacturing company, whereas Holliwell Industries is a service company. c. Jamison Trucking is a service company, whereas Holliwell Industries is a manufacturing company. d. Jamison Trucking is a service company, whereas Holliwell Industries is a merchandising company.

Jamison Trucking is a service company, whereas Holliwell Industries is a manufacturing company.

Which one of the following is not an assumption of CVP analysis? Volume or level of activity affects costs. Costs can be classified as variable or fixed. The sales mix is constant. Profit for the period is constant.

Profit for the period is constant.

On a CVP income statement Sales - Cost of goods sold = Contribution margin. Sales - Variable costs - Fixed costs = Contribution margin. Sales - Variable costs = Contribution margin. Sales - Fixed costs = Contribution margin.

Sales - Variable costs = Contribution margin.

What is contribution margin? The amount available to cover fixed costs and contribute to profits. The amount available to cover fixed and variable costs and contribute to profits. The percent of selling price pertaining to the cost of goods sold. The amount of revenue remaining after deducting fixed costs.

The amount available to cover fixed costs and contribute to profits.

Fukui Electronics manufactures flat screen TVs. In October, they finished manufacturing 82 TVs, started and completed another 175 TVs, and started manufacturing an additional 34 TVs. How would the cost information for manufacturing these TVs be displayed on the company's financial statements? The cost information would be displayed on the income statement under net income and on the balance sheet under liabilities. The cost information would be displayed on the income statement under cost of goods sold and on the balance sheet under inventory. The cost information would be displayed on the income statement under work in process and on the balance sheet under cost of goods manufactured. The cost information would be displayed on the income statement under current assets and on the balance sheet under expenses.

The cost information would be displayed on the income statement under cost of goods sold and on the balance sheet under inventory.

How is the cost of goods manufactured schedule related to the income statement? The cost of goods manufactured that is calculated on the cost of goods manufactured schedule is placed on the income statement under the cost of goods sold section. The cost of goods manufactured schedule is used to calculate the cost of goods sold, which is then placed on the income statement to calculate company expenses. The income statement is used to calculate the cost of goods sold, which is then transferred to the cost of goods manufactured schedule to help calculate the cost of goods manufactured. The income statement is used to calculate finished goods inventory and work in process inventory, which are then transferred to the cost of goods manufactured schedule to calculate cost of goods sold.

The cost of goods manufactured that is calculated on the cost of goods manufactured schedule is placed on the income statement under the cost of goods sold section.

A company that produces pots and pans would like to implement a just-in-time inventory system. Which product-flow model best demonstrates this strategy? The company always keeps a large inventory of finished products so it will have enough products to fill customer orders quickly. Through an integrated information system, the company receives raw materials and makes products as customers need them. The company keeps a small inventory of each product and makes larger quantities as needed for customer orders. Each time a new customer order arrives, the company purchases the product from another manufacturer and ships it to the customer as soon as it's received from the supplier.

Through an integrated information system, the company receives raw materials and makes products as customers need them.

1) The contribution margin ratio increases when: a. Fixed costs increase. b. Fixed costs decrease. c. Variable costs as a percentage of sales decrease. d. Variable costs as a percentage of sales increase.

Variable costs as a percentage of sales decrease.

Which of the following costs are classified as a period cost? a- Wages paid to a factory custodian. b- Wages paid to an assembly worker. c- Wages paid to a cost accountant department supervisor. d- Wages paid to a production department supervisor.

Wages paid to a cost accountant department supervisor

Which statement describes a fixed cost? It varies in total at every level of activity. When activity declines, its cost per unit increases. The unit cost varies directly to the activity level. The unit costs stay the same at every activity level.

When activity declines, its cost per unit increases.

Which of the following statements is FALSE? When fixed costs as well as variable costs increase, the breakeven rate will decrease. When fixed costs as well as variable costs increase, the breakeven rate will increase. When fixed costs increase but variable costs decrease, the change in breakeven rate will be indeterminate. When fixed costs as well as variable costs decrease, the breakeven rate will increase.

When fixed costs as well as variable costs increase, the breakeven rate will increase.

Gina Baccardi is an accounting intern working under the tax accountant for Starlight Fashions, a clothing manufacturer, in New York City. Gina's salary would be classified as a direct cost. manufacturing overhead. indirect labor. a period cost.

a period cost

Property taxes on a manufacturing plant should be classified as which type of cost? both a period cost and a product cost a period cost but not a product cost neither a period cost nor a product cost a product cost but not a period cost

a product cost but not a period cost

The salary of a plant manager should be classified as which type of cost? neither a product cost nor a period cost a period cost but not a product cost both a product and a period cost a product cost but not a period cost

a product cost but not a period cost

Jaime K. owns a small gear manufacturing plant. Jaime's gears are sold to large earth-moving equipment manufacturers. Jamie considers which of the following a period cost? advertising expense for products manufactured in the factory oil and grease used as a lubricant for factory machinery depreciation expense on factory equipment property taxes on the factory

advertising expense for products manufactured in the factory

Mixed costs remain the same in total at every level of activity. remain the same per unit at every level of activity. change with the volume of production. are costs that vary as activity level changes, but do not stay the same per unit like variable cost.

are costs that vary as activity level changes, but do not stay the same per unit like variable cost.

The management of an organization performs several broad functions. They are a- planning, manufacturing, and controlling. b- planning, directing, and controlling. c- planning, directing, and selling. d- directing, manufacturing, and controlling.

b- planning, directing, and controlling.

Coordinating the preparation of the budget is the responsibility assigned to the a- lower levels of management. b- budget committee. c- accounting department. d- management.

budget committee

All of the following are distinguishing features of managerial accounting except a- to provide special-purpose information. b- internal users. c- independent audits. d- reports pertaining to subunits of the entity.

c- independent adults

1) The function that pertains to keeping the activities of the enterprise on track is: a. Planning b. Directing c. Controlling d. Accounting

controlling

The ________ function pertains to keeping the activities of the enterprise on track. a. directing b. planning c. controlling d. accounting

controlling

The process of keeping the company's activities on track is a- controlling. b- planning. c- directing. d- evaluating.

controlling

Jamco Corporation is restructuring their entire company. In addition to finding ways to increase profits, they want to develop employee training and advancement opportunities, partner with community organizations, and reduce the environmental impact of their manufacturing processes. Jamco has decided to focus on corporate social responsibility. their value chain. total quality management. their financial bottom line.

corporate social responsibility.

The costs of goods manufactured schedule reports only the cost elements used in calculating a.the cost of goods manufactured. b. cost of raw materials. c. beginning work in process inventory. d. costs of indirect labor.

cost elements used in calculating the cost of goods manufactured.

Armando works for Pinup Signs, which manufactures signs ranging from lawn signs to billboards. If he wants to prepare the company's income statement, what statement should he prepare first? cost of goods sold statement statement of cash flows balance sheet cost of goods manufactured schedule

cost of goods manufactured schedule

Philippa is getting ready to start preparing the income statement for General Graders, a company that manufactures graders used by large mining companies. What financial document has Philippa already prepared? balance sheet cost of goods manufactured schedule cost of goods sold statement statement of cash flows

cost of goods manufactured schedule

Cost of goods manufactured is to a manufacturing enterprise as ________ is to a merchandising enterprise. cost of merchandising inventory finished goods inventory work in process inventory cost of goods purchased

cost of goods purchased

When inventory is recorded on the balance sheet at cost, which of the following is included in the computation of that cost? depreciation of corporate office computers depreciation of the manufacturing plant marketing costs electricity costs of the corporate office

depreciation of the manufacturing plant

Manufacturing overhead differs from direct manufacturing costs becausemanufacturing overhead is not a tax-deductible expense, whereas direct costs are deductible for purposes of taxable income.direct costs, such as labor and material, are identifiable with the product, whereas manufacturing overhead is not specific to a product and cannot be identified with a product.manufacturing overhead is always a fixed cost, whereas direct costs are always variable costs.manufacturing overhead is not a relevant cost, whereas direct cost affects the pricing of the final product.

direct costs, such as labor and material, are identifiable with the product, whereas manufacturing overhead is not specific to a product and cannot be identified with a product.

On average, studies have shown that the smallest component of total manufacturing cost is a- direct materials. b- manufacturing overhead. c- factory overhead. d- direct labor.

direct labor

The production manager of Galileo Systems has informed the marketing manager that if sales volume increases by 5%, the company can buy raw materials at a lower cost. As a result, total cost of production will decrease by 2%--a saving that can be passed along to customers, potentially increasing market share. The 2% decrease in total cost due to a 5% volume increase is most likely due to a decrease in period cost. factory support. indirect savings. direct material cost.

direct material cost

Which is an example of an overhead cost? flour used in the manufacture of frozen cookie dough sugar used in the manufacture of breakfast cereal electricity used to run a manufacturing plant wages of an assembly line worker

electricity used to run a manufacturing plant

The responsibilities of a controller include investigating compliance with policies and regulations. reviewing the reliability and integrity of financial information provided by the treasurer. ensuring an adequate system of internal control. formulating the operating policies for the company.

ensuring an adequate system of internal control.

A merchandising company has _______ lines under the Inventory section of the balance sheet compared to a manufacturing company. a. more b. fewer c. no d. answer cannot be determined

fewer

Inventory is to a merchandising enterprise as ____________ is to a manufacturing enterprise. finished goods inventory total manufacturing costs work in process inventory cost of goods manufactured

finished goods inventory

One of the following is not involved in CVP analysis. That factor is sales mix. unit selling prices. fixed costs per unit. volume or level of activity.

fixed costs per unit

CVP analysis considers the interrelationships among all of the following components except volume/level of activity. variable cost per unit. unit selling prices. fixed costs per unit.

fixed costs per unit.

Decision-making _______________ a separate management function. is is not cannot be determined as None of these answers are correct

is not

1) For better management acceptance, the flow of input date for budgeting should begin with the: a. Accounting department b. Top management c. Lower level of management d. Budget committee

lower level of management

Determining the cost per unit to manufacture the company's most popular product is an activity performed by a marketing manager. financial accountant. managerial accountant. sales manager.

managerial accountant

Costs that change in total but not proportionately with changes in the activity level are fixed costs. mixed costs. semi-fixed costs. variable costs.

mixed costs

How many categories of inventory does a balance sheet for a merchandising company contain? three none one two

one

The main difference between the balance sheet of a merchandising company and a manufacturing company is that a merchandising company has one type of inventory on its balance sheet, whereas a manufacturing does not report inventory on its balance sheet. more than one type of inventory, whereas a manufacturing company has one type of inventory. no inventory reported on its balance sheet, whereas a manufacturing company has one type of inventory on its balance sheet. one type of inventory, whereas a manufacturing company has more than one type of inventory.

one type of inventory, whereas a manufacturing company has more than one type of inventory.

________ would be reported on the income statement as expenses when they are incurred. a. Product costs b. Direct materials c. Period costs d. Indirect materials

period costs

What type of cost is direct labor? period cost indirect cost product cost non-manufacturing cost

product cost

Jaime K. owns a small gear manufacturing plant. Jaime's gears are sold to large earth-moving equipment manufacturers. Jamie considers which of the following a product cost? advertising costs sales commissions depreciation of delivery trucks production manager's salary

production manager's salary

A just-in-time inventory system focuses on reducing warehousing costs and inventory held. increasing customer demand. holding more inventory. advanced ordering of materials.

reducing warehousing costs and inventory held.

Which of the following is likely to contain a linear relationship between costs and activities? Full capacity. Relevant range. Small-scale operations. The entire range of possible activity.

relevant range

1) The starting point in preparing the master budget is the a. Cash budget b. Budgeted income statement c. Direct materials budget d. Sales budget

sales budget

Development of the operating budget begins with the a- sales budget. b- cash budget. c- materials budget. d- overhead budget.

sales budget

how to find contribution margin

sales revenue-cost of goods sold- selling expenses- admin expenses= cont margin

Reyna Manzi is a tax accountant for Healthnut Mineral Water, Inc. Her salary should be classified as a non-manufacturing general cost. should be classified as factory overhead. may be treated as factory overhead or a period expense, depending on whether she reports to the plant controller or the chief company accountant. should be treated as a period expense.

should be treated as a period expense

Cost-volume-profit analysis includes all of the following assumptions except the behavior of costs is curvilinear throughout the relevant range. costs can be classified accurately as either variable or fixed. changes in activity are the only factors that affect costs. all units produced are sold.

the behavior of costs is curvilinear throughout the relevant range.

The relevant range is the range of activity in which variable costs will be curvilinear. the range of activity in which fixed costs will be curvilinear. the range over which the company expects to operate during a year. the range of activity where variable costs in total vary inversely with activity.

the range over which the company expects to operate during a year.

In order to calculate the total cost of work in process, you should add the beginning balance of the work in process inventory to the raw material purchases for the period. ending balance of the finished goods inventory. total manufacturing costs for the current period. manufacturing overhead.

total manufacturing costs for the current period.

Rebecca has collected information about direct material costs, direct labor costs, and overhead costs. Rebecca is likely planning to calculate indirect costs. total product costs. allocated costs. period costs.

total products costs

What type of cost remains the same per unit at every level of activity and varies in total directly and proportionately with changes in the activity level? Fixed cost. Mixed cost. Semi-variable cost. Variable cost.

variable cost

Mixed costs consist of a variable cost element and a fixed cost element. fixed cost element and a controllable cost element. relevant cost element and a controllable cost element. variable cost element and a relevant cost element.

variable cost element and a fixed cost element.

1) Costs that vary in total directly and proportionately with changes in the activity level are: a. Variable costs b. Fixed costs c. Mixed costs d. Semi-variable costs

variable costs

1) For a manufacturing company, which of the following is an example of a period cost rather than a product cost? a. Depreciation on factory equipment b. Wages of salesperson c. Wages of machine operator d. Insurance on factory equipment

wages of salesperson

Which account shows the cost of production for units that have been started in the manufacturing process but are not complete at the end of the accounting period? Finished Goods Inventory Cost of Goods Sold Work in Process Inventory Raw Materials Inventory

work in process inventory

Patti Mazzeo runs Mama J's Pizza Shop. Each pizza is hand-made on the premises and customized to each customer's specific order. Which of the following positions is considered direct labor? worker who takes the customer's order worker who delivers the pizza worker who monitors the oven and rotates each pizza as needed for even baking worker who busses and cleans tables

worker who monitors the oven and rotates each pizza as needed for even baking

1) The salary of a plant manager would be considered a: Product Cost Period Cost a. Yes Yes b. Yes No c. No Yes d. No No

yes; no

Toledo Manufacturing has the following variable overhead costs:Indirect materials: $2.18/hourIndirect labor: $3.26/hourUtilities: $0.90/hourMaintenance: $0.33/hourDirect labor hours: 14,500 hoursIf Toledo decides that they need to increase their indirect materials to $2.25 per hour, how much will this increase the company's total variable costs at this level of activity? $1,150 $730 $1,015 $980

$1,015

For Carla Vista Company, variable costs are 70% of sales, and fixed costs are $230,100. Management's net income goal is $88,500.Compute the required sales in dollars needed to achieve management's target net income of $88,500. (Use the contribution margin approach.)

$1062000 (230,100+88,500)= 318600 1-70=30% 318600 x 100/30= 1062000

1) Dolce Company is planning to sell 400,000 hammers for $1.50 per unit. The contribution margin ratio is 20%. If Dolce will break even at this level of sales, what are the fixed costs? a. $120,000 b. $280,000 c. $400,000 d. $480,000

$120,000

1) In the Campbell Company required production for June is 44,000 units. To make one unit of finished product, three pounds of direct material Z are required. Actual beginning and desired ending inventories of direct material Z are 100,000 and 110,000 pounds, respectively. How many pounds of direct material Z must be purchased? a. 126,000 b. 132,000 c. 136,000 d. 142,000

$142,000

1) At the beginning of the year, Opal Company has a cash balance of $23,000. During the year, the company expects cash disbursements of $160,000, and cash receipts of $140,000. If Opal Company requires an ending cash balance of $20,000, how much must the company borrow? a. $20,000 b. $0 c. $17,000 d. $40,000

$17,000

1) Microtech plans to sell 2,000 computers in April; 1,900 in May; and 2,000 in June. The company keeps 15% of the next month's sales as ending inventory. How many units should Microtech produce in May? a. Amount cannot be determined due to insufficient information. b. $1,885 c. $1,915 d. $2,200

$1915

Barry's BarBQue incurred the following costs: $1,400 for ribs, 45 hours of labor to cook the ribs at $10 per hour, $50 for seasoning and sauce, $300 for signs to advertise the ribs, $150 to clean the grill after cooking the ribs, and $100 of administrative costs. How much are total product costs? a- $1,850 b- $2,050 c- $2,150 d- $2,350

$2,050

1) Livingston Co. has fixed costs of $60,000 and a contribution margin ratio of 30%. How much in dollar sales does Livingston Co. need to have to break-even? a. 0 b. $60,000 c. $180,000 d. $200,000

$200,000

Boyd Industries had a beginning balance of $59,600 in its Raw Materials Inventory account. At the end of the period, the ending balance in this account was $61,300. During the period, Boyd purchased $232,700 of materials. What was the cost of raw materials used during the period? $353,600 $111,800 $234,400 $231,000

$231,000 beg bal +materials-ending balance

1) For the year, Mahatma Company has cost of goods manufactured $325,000, beginning finished goods inventory $150,000, and ending finished goods inventory $175,000. The cost of goods sold is: a. $275,000 b. $300,000 c. $325,000 d. $350,000

$300,000

Pharmco incurred the following costs while manufacturing its product: Materials used in production, $120,000; factory depreciation, $60,000; property taxes on the administrative offices, $12,000; labor costs of assembly-line workers, $95,000; factory supplies used, $8,000; advertising expense, $13,000; property taxes on the factory, $20,000; delivery expense, $23,000; salaries of the sales staff, $53,000; and sales commissions, $17,000. The total product costs for Pharmco are a-$315,000. b- $303,000. c- $391,000. d- $421,000.

$303,000

Grant, Inc. had beginning and ending raw materials inventory of $80,000 and $100,000, respectively. If the cost of raw materials purchased was $407,500, what was the amount of direct materials used? $227,500 $387,500 $587,500 $427,500

$387,500 $407,500 - 80,000 cost of raw materials - beg raw materials

Manders Corporation has $20,000 of ending finished goods inventory at December 31. If beginning finished goods inventory was $15,000 and cost of goods sold was $40,000, how much would Manders Corporation report as cost of goods manufactured? $5,000. $55,000. $75,000. $45,000.

$45,000 (40,000+ 20,000- 15,000) (cost of goods sold+ending finished goods inventory-beginning finishes goods inventory)

Major Industries manufactures covers for iPads. One of its most popular products, Hercules, has the following costs to produce 1,000 units: $30,000 direct materials, $6,000 advertising costs, $11,000 direct labor, $3,000 plant manager salary, and $2,000 salaries for factory maintenance. What is the cost to produce one Hercules cover? $52 $41 $46 $43

$46 direct materials+adv cost+direct labor+salories for fact maintenance- plant manager sal

Cupid Co. manufactures dog toys. For 2022, it had the following amounts related to its most popular toy, Bacon Ben: beginning finished goods inventory, $30,000, cost of goods manufactured $120,000, and cost of goods sold $100,000. What was the amount of ending finished goods inventory? $30,000 $10,000 $20,000 $50,000

$50,000 cost of goods manufactures - cost of goods sold + beg finished inventory

For the year, Redder Company has cost of goods manufactured of $600,000, beginning finished goods inventory of $200,000, and ending finished goods inventory of $250,000. The cost of goods sold is a- $600,000. b- $450,000. c- $500,000. d- $550,000.

$550,000 (beginning finished goods inventory (20,000) + cost of goods manufactured (600,000) - ending finished goods inventory (250,000)

On January 1, 2022, Windows Incorporated has $14,218 in partially completed windows in their inventory. During the month of January, they incur another $5,247 to finish the windows, $37,922 to complete another 120 windows, and $9,732 to start 50 more windows. What is the total cost of work in process for the month of January?$57,387$67,119$19,465$52,901 Save for Later Submit Answer

$67,119

Anderson Manufacturing has direct material costs of $3.00 per unit, advertising costs of $.20 per unit, manufacturing overhead of $1.90 per unit, administrative expenses of $1.30 per unit, and direct labor of $2.40 per unit. What is Anderson's total product cost per unit? $8.80 $7.30 $5.40 $7.50

$7.30 $3+ $1.90 +$2.40

Checker Clackers, Inc. manufactures clackers. Checker's transactions and accounts included the following during June: Raw materials inventory, beginning $1,200 Raw materials inventory, ending 1,400 Work in process inventory, beginning 7,100 Work in process inventory, ending 6,800 Raw materials acquired 27,800 Cost of direct materials used in production 27,600 Sales commissions to sell clackers 2,100 Direct labor cost 20,000 Total manufacturing overhead 28,900 How much is cost of goods manufactured for June? a- $78,900 b- $76,500 c- $77,000 d- $76,800

$76,800

Model Magic Manufacturing reported the following year-end balances: Beginning work in process inventory, $35,000; beginning raw materials inventory, $18,000; ending work in process inventory, $38,000; ending raw materials inventory, $15,000; raw materials purchased, $510,000; direct labor, $180,000; and manufacturing overhead, $75,000. What is the amount of total work in process for Model Magic for the current year? a- $768,000. b- $803,000. c- $765,000. d- $513,000.

$803,000 (18,000+510,000-15,000) =513,000 then (35,000+513,000+75,000)= 803,000

Chris Manufacturing has beginning work in process inventory of $276,000, ending work in process inventory of $270,000, and cost of goods manufactured of $960,000. What was the amount of Chris Manufacturing's total manufacturing costs for the period? $414,000 $546,000 $966,000 $954,000

$954,000 cost of good manufactured+ending work in process inv- beginning work in process inv

Cara's Wedding Designs makes and sells bridal dresses, bridesmaids' dresses, tuxedos, and suits. The company plans to produce 60 dresses during the next month and will require 390 yards of fabric for production. The total fabric required for the month is 429 yards. What are the direct materials per dress? 7.15 yards 6.5 yards 1.1 yards .65 yards

6.5 yards

1) The Turlington Company has 12,000 units in beginning finished goods. If sales are expected to be 60,000 units for the year and Turlington desires ending finished goods of 15,000 units, how many units must Turlington produce? a. 57,000 b. 60,000 c. 63,000 d. 75,000

63,000

What is the primary tradeoff between hydroponic farming in cities and traditional soil based farming? A. Hydroponic farming is likely to have higher fixed costs in terms of building, lighting and simulated atmospheric conditions while reducing variable costs such as fertilizers, water and fuel. b. Hydroponic farming is likely to have higher fixed costs in terms of building, lighting and simulated atmospheric conditions as well as higher variable costs such as fertilizers, water and labor. c. Hydroponic farming is likely to have lower fixed costs in terms of building and lighting and simulated atmospheric conditions while reducing variable costs such as fertilizers, water and fuel. d. Hydroponic farming is likely to have higher fixed costs in terms of building and lighting and simulated atmospheric conditions with no effect on variable costs such as fertilizers, water and fuel.

Hydroponic farming is likely to have higher fixed costs in terms of building, lighting and simulated atmospheric conditions while reducing variable costs such as fertilizers, water and fue

After focusing for so long on total quality management, Mobley Industries found that while their product defects decreased by 18%, their product costs increased by 42%. What can they do to bring down their costs? a. Focus on corporate social responsibility b. Use activity-based costing c. Implement a balanced scorecard approach d. Implement an enterprise resource planning system

Implement a balanced scorecard approach

How are goods available for sale classified differently between a merchandising company and a manufacturing company? It is called Inventory for a merchandising company but Finished Goods Inventory for a manufacturing company. It is called Raw Materials Inventory for a merchandising company but Inventory for a manufacturing company. It is called Finished Goods Inventory for a merchandising company but Raw Materials Inventory for a manufacturing company. It is called Raw Materials Inventory for a merchandising company but Finished Goods Inventory for a manufacturing company.

It is called Inventory for a merchandising company but Finished Goods Inventory for a manufacturing company.

Which one of the following is correct concerning contribution margin? It is calculated by subtracting variable manufacturing costs from sales. It is helpful in determining the effect of changes in sales on net income. It is calculated by subtracting total manufacturing costs from sales revenue. It equals sales revenue minus total costs.

It is helpful in determining the effect of changes in sales on net income.