1)The following is data for a manufacturing company:

Direct Materials $ 7,000

Direct Labor $2,000

Manufacturing Overhead 10,000

Begin Work-in-Process ?

End Work-in-Process 4,000

Cost Goods Manufactured 18,000

Revenue 25,000

Begin finished good 6,000

Cost Goods Sold ?

End Finished Goods 9,000

Gross Margin (Profit) ?

Net Income ?

Operating Expenses 6,000

What is the beginning Work in Process balance?

A $15,000 Incorrect. Please review Top Ten Concept # 4.

B $ 4,000

C $3,000

D $18,000

E $5,000

2) Which types of these special short run decisions is management likely to need to make?

A Accept or reject a special order.

B Make it yourself or buy it from outside. Incorrect. Please review Top Ten Concept # 6.

C Sell now or process further,

D Pricing standard products.

E All four of the other answers require short run management decisions.

3)Which of the following is not a Capital Budgeting Method?

A Accounting Rate of Return.

B Excess Present Value Index. Incorrect. Please review Top Ten Concept # 7.

C Internal rate of return

D Present Value

E Payback Period

4) Which of the following costs equates most closely to the economist's concept of marginal cost?

A Opportunity Cost. Incorrect. Please review Top Ten Concept # 8.

B Advertising Cost.

C Sunk Costs.

D Production Cost

E Variable Cost