ACCTFinal

On December 31, 2021, haas engineering's ending inventory was $41,200. On December 31, 2022, haas ending inventory was $40,000. Assuming beginning inventory and cost of goods purchased were the same in 2021 and 2022, how will haas cost of goods sold in 2022 differ from its cost of goods sold in 2021?

It will be higher in 2022 than in 2021

Philip is a manager whoever sees raw materials ordering, inventory levels, employee efficiency and productivity, and assembly line maintenance. Which of the following budgets would fill up most likely help develop?

Manufacturing overhead budget

____________ are good that the company owns and in a form ready for sale to customers and the ordinary course of business A) merchandise inventory B) consigned goods C) work in process D) raw materials

Merchandise inventory

An organization is planning their master budget. They begin by listing all of their expected cash outflows, including employee salaries and benefits, utilities, program expenses, insurance, vehicle registration and maintenance, and rent expenses. This organization is likely a

Not for profit

Which unit of activity makes Laundry costs a variable for Marriott hotels? A) Number of guests B) number of hotels C) number of cleaning staff D) number of rooms

Number of guests

A physical inventory count at the end of the accounting period is required under which inventory system? A) sampling system B) perpetual system C) periodic system D) periodic and perpetual systems

Periodic and perpetual systems

Which of the following would be equal to the cost of goods available for sale?

The cost of good sold plus ending inventory

When goods are sold FOB destination ____________

The seller pays freight costs

Two sporting goods stores have similar annual net sales. If one store sells mostly high-quality goods and the other store sells mostly moderate-quality goods, which store likely has the higher gross profit rate? Why?

The store that sells high-quality goods likely has the higher gross profit rate because markup tends to be higher for higher quality goods.

Feel good clothing company has a pallet of shirts that need buttons sewn on them. These would be categorized as _________

Work in process inventory

Nathan is working on the operating budgets for his company. He has already done the sales and production budgets, and he is now working on the direct materials, direct labor, and manufacturing overhead budgets. He decides to do the directly rebudget first, then the manufacturing overhead budget, then the direct materials budget. Do you think this is an appropriate way to repair the budget? Why or why not?

Yes, because the manufacturing overhead budget depends on the direct labor budget. but none of the other budgets depend on the direct materials budget

Cost of goods sold formula

beginning inventory + cost of goods purchased - ending inventory

Which line items of the budgeted balance sheet are calculated based on operating budgets?

finished goods inventory, raw materials inventory, and retained earnings

Anders Enterprises produces widgets. It currently has $14,200 in raw materials in its warehouse, along with $42,000 in finished widgets. In addition, it has $31,500 in widgets at various stages of completion on its assembly line. What is Anders' total inventory? A : $87,700 B : $42,000 C : $73,500 D :$56,200

$87,700 14,200+42,000+31,500= $87,700

If sales revenues are $400,000, cost of goods sold is $310,000, and operating expenses are $60,000, the gross profit is

$90,000

The Fitzhugh corporation saw a 10% decrease in activity levels over the fourth quarter. You have been asked what other changes the company should expect because of this decrease. What will you report?

A 10% decrease in variable costs

What is the difference between a line position and a staff position?

A line position directly supports revenue-generating activities, whereas a staff position indirectly supports revenue-generating activities.

Cropper supermarket is having a sale before a holiday weekend. The cost of placing the ads on local TV and then the local newspaper would be classified as

A period cost, but not overhead

Both Austin and Jasmine purchased items on Account through Mason landscaping. Austin will pay his account within 30 days. Jasmine signed a written promise to pay within 90 days with a 1% monthly interest rate. What is the difference between these two transactions?

Austin's transaction would be classified as accounts receivable, where as Jasmine's purchase would be classified as notes receivable

Operating expenses include all of the following EXCEPT ___________ A) Rent expense B)freight out C)salaries and wages expense D)interest expense

Interest expense

If a company using a perpetual inventory system purchases goods and pays the transportation cost which account is increased? A)Delivery expense B) contra revenue C) inventory D)freight out

Inventory

Electing information from lower level operating managers and their subordinates with the help of a bottom of budgeting process is___________

Is a costly but beneficial exercise

Decision making _______ A separate management function A) is B) is not C) cannot be determined as D) none of these are correct

Is not

Overhaul Trucking and Two Men Deliveries both purchased services on account from Auto Body Repairs. Auto Body Repairs recorded Overhaul Trucking's purchase in Accounts Receivable, whereas they recorded Two Men Deliveries' purchase in Notes Receivable. What is the difference between these two transactions?

Auto Body Repairs expects payment from Overhaul Trucking within 30- 60 days, but they expect payment from Two Men Deliveries in more than 60 days.

In which of the following circumstances is a company most likely to be losing sales opportunities because of inventory shortages?

Increased inventory turnover and decreased days in inventory

Harlan enterprises manufactures smart phones. Currently, Harlan has $14,000 in raw materials and $25,000 in finished goods in its warehouse. It also has $18,600 in work in process goods on its assembly line. Harlan erroneously includes the work in process goods as part of finished goods inventory, listing work in process inventory at $0. what effect will this have on Harlan's total inventory?

It will have no impact on the total inventory

Which of the following relationships are correctly paired?

Less inventory turnover will result in increased days in inventory

Newman Shoes and Bowman Footwear both decided to write off a specific customer's uncollectible account as a bad debt expense. If Newman Shoes uses the direct write-off method and Bowman Footwear uses the allowance method for uncollectible accounts, what will be the difference in the journal entries for these two companies?

Newman Shoes will record an increase in Bad Debt Expense, whereas Bowman Footwear will record a decrease in Allowance for Doubtful Accounts.

Company why has not changed it selling price nor it's total fix cost but has been able to decrease its unit variable cost. What will happen to the units required to meet it's target net and gum?

The units required will decrease

______ is calculated by subtracting the cost of goods sold from net sales on a multiple step income statement A) net income B)gross profit C) income before taxes D)operating expense

Gross Profit

Where should the accounts receivable and the allowance for doubtful accounts be reported?

Balance sheet

Of the following companies which is most likely to have the highest inventory turnover and the lowest days in inventory?

Dell

Which of the following represents the flow of budget data under participative budgeting?

Department Manager to Plant Manager to Vice President of Production

_____________ is the function of coordinating the diverse activities and human resources of a company to produce a smooth running operation A) Directing B) planning C) accounting D) controlling

Directing

Xavier is a manager at Biltmore industries And is responsible for several controlling activities. Which of the following activities would you expect Xavier to participate in?

Evaluating why the assembly line is making only 14 dozen boxes of cake mix each hour rather than the expected 18 dozen boxes

Which of the following would positively affect the gross profit of a company? A) selling overstock to inventory at sale prices B) selling products with a lower mark up C) reducing the cost paid to suppliers for merchandise D)lowering sales prices of merchandise to meet increasing competition

Reducing the cost paid to suppliers for merchandise

Reyna manzi is a tax accountant for health nut mineral water Inc. her salary

Should be treated as a period expense

When goods are shipped FOB shipping point,__________

The buyer pays the freight

Rebecca has collected information about direct material cost, direct labor cost, and overhead cost. Rebecca is likely planning to calculate _________

Total product cost

Recently, suppliers have raised cost so urban kicks spends more to make each pair of shoes. Despite these changes, management has managed to keep fixed cost and the selling price the same. What do these changes mean for urban kicks?

Urban kicks will need to increase the number of pairs of shoes sold to maintain their net income

Cost of goods sold should be subtracted from net sales on which of the following financial statements?

multiple-step income statement

Ellen is a manager who helps develop sales promotions, targets customers for upselling, and searches for potential new customers. Which of the following budgets would Ellen most likely help develop?

sales budget