1. Which of the following is not likely to be a fixed cost? A. direct materials B. rent C. depreciation D. salary of the human resources director

2. Managerial accounting A. is primarily directed at external users of accounting information. B. is required by taxing authorities such as the IRS. C. must follow GAAP. D. is optional.

3. Which of the following is most likely to make use of Spruce Companys managerial accounting information? A. the IRS B. an individual contemplating an investment in Spruce Company C. a company that is one of Spruces main competitors D. the production manager of Spruces plant in Minnesota

4. Ice Box Company manufactures refrigerators. Which of the following items is most likely to be an indirect material cost for Ice Box Company?

1. Factory supervisors salary
2. Lubricant for refrigerator door hinges
3. Glass shelves for the refrigerators
4. Refrigerator motors

5. Which of the following accounts does not appear on the balance sheet?

1. Raw Materials Inventory
2. Finished Goods Inventory
3. Work in Process Inventory
4. Cost of Goods Manufactured

6. The balance in the Finished Goods Inventory account on July 1, 2007, was

$34,000 and the June 30, 2008, balance in the Finished Goods Inventory account was $41,000. If the cost of goods manufactured was $200,000, what was the cost of goods sold?

A. $285,000

B. $193,000

C. $207,000

D. $278,000