1-Indicate whether the following should be categorized as a product cost or a period cost: Raw materials used in production easily traced to the product.

Select one:

a. product

b. period cost

2-Select the cost behavior that best describes the following cost: Company cell phones with first 50 hours free, then 10 cents per minute.

Select one:

a. variable cost

3-Choose (from the following) the most appropriate account that would fit this description: Used to record product costs associated with incomplete goods in the production process.

Select one:

a. Raw materials inventory

b. Work-in-process inventory

c. Finished goods inventory

d. Cost of goods sold

b. fixed cost

c. mixed cost

4-Identify whether the following item would appear in the operating section, investing section, or the financing section of the Statement of Cash Flows: Cash payments to shareholders for dividends.

Select one:

a. operating

b. investing

c. financing

5-

For the following cost-pool activity, choose the most appropriate cost driver: Inspecting raw materials.

Select one:

a. Number of purchase orders processed, or units of material purchased (for example, pounds of material purchased)

b. Number of inspections, or units of material inspected

c. Units of raw materials stored, or storage space consumed

d. Number of machine hours

e. Number of machine setups

f. Number of tests, or number of products tested

6-

The New York Company produces high-quality chairs. Variable manufacturing overhead is applied at a standard rate of $12 per machine hour. Each chair requires a standard quantity of six machine hours. Production for the month totaled 4,000 units. Calculate the flexible budget amount for variable overhead for the month.

Select one:

a. $130,000

b. $192,000

c. $288,000

d. $100,000

7-

Identify whether the following item would appear in the operating, investing, or financing activities section of the statement of cash flows: Cash payments for the purchases of merchandise.

Select one:

a. operating

b. investing

c. financing

8-

Identify whether the following item would appear in the operating section, investing section, or financing section of the statement of cash flows: Cash receipts from the issuance of bonds.

Select one:

a. operating

b. investing

c. financing

9-

Identify whether the following item would appear in the operating section, investing section, or the financing section of the Statement of Cash Flows: Cash payments for the purchases of merchandise.

Select one:

a. Operating

b. Investing

c. Financing

10-

Identify whether the following item would appear in the operating section, investing section, or the financing section of the Statement of Cash Flows: Cash payments for income taxes.

Select one:

a. Operating

b. Investing

c. Financing

11-

Identify whether the following item would appear in the operating, investing, or financing activities section of the statement of cash flows: Cash payments to employees.

Select one:

a. operating

b. investing

c. financing

12-

Fly-by Products, Inc. operates primarily in the United States and has several segments. For the following segment, determine whether it is a cost center, profit center, or investment center: Retail stores - responsible for sales prices and all costs within each store.

Select one:

a. cost center

b. profit center

c. investment center

13-

Select the cost behavior that best describes the following cost: Materials required for production.

Select one:

a. variable cost

b. fixed cost

c. mixed cost

14-

For the following cost-pool activity, choose the most appropriate cost driver: Purchasing raw materials.

Select one:

a. Number of purchase orders processed, or units of material purchased (for example, pounds of material purchased)

b. Number of inspections, or units of material inspected

c. Units of raw materials stored, or storage space consumed

d. Number of machine hours

e. Number of machine setups

f. Number of tests, or number of products tested

15-

Select the cost behavior that best describes the following cost: Salaries and commissions of salespeople.

Select one:

a. variable cost

b. fixed cost

c. mixed cost

16-

Determine whether the chief financial officer, controller, treasurer, internal auditor, managerial accountant, financial accountant, or tax accountant would perform the following task: Oversees the treasurer and internal auditor.

Select one:

a. Chief financial officer

b. Controller

c. Treasurer

d. Internal auditor

e. Managerial accountant

f. Financial accountant

g. Tax accountant