QUESTION 1

The cost of milk used to manufacture ice cream would most likely be classified as a(n):

Variable cost Indirect cost Sunk cost Differential cost

1 points

QUESTION 2

Which of the following would not usually be considered a fixed cost?

Insurance Executive salaries Plant depreciation Needles used in a hospital

1 points

QUESTION 3

The product costs of a software development company would NOT include:

Computer lease Salary of the CEO Supplies used by programmers Computer programmers's salaries

1 points

QUESTION 4

Which of the following would NOT be included in manufacturing overhead?

Indirect materials Factory utilities Factory fire insurance Direct labor

1 points

QUESTION 5

You currently work as a machinist for a factory. Your salary is $28,000 per year. You are thinking about quitting your job and going back to college. It will take you two years to obtain your college degree. Tuition and other costs of the education will total $24,000. You also intend to keep your car by making $250 per month payments out of your savings. How much is the opportunity cost of going to college.

$28,000 $56,000 $52,000 $62.000

1 points

QUESTION 6

The scattergraph is a useful tool for:

Analyzing abrupt changes in cost behavior Determining actual variable costs Determining the break-even point Working outside the relevant range

1 points

QUESTION 7

Which type of business organization allows the business to be a separate, distinct entity away from its owners?

Partnership Proprietorship Corporation All of the above

1 points

QUESTION 8

Compared with preferred stock, common stock usually has a favorable preference in terms of:

Dividends Voting rights Liquidated assets Resale value

1 points

QUESTION 9

On January 1, 2013, Georgi Company was authorized to issue 10,000 shares of $2 par value common stock and 5,000 shares of $5 preferred stock. Given this information, if Georgi Company issued 3,000 shares of common stock for $7 per share on January 10, 2013, the entry to record the issuance of the stock would include a

Debit to Cash of $6,000 Credit to Premium on Common Stock of $6,000 Credit to Common Stock of $6,000 Debit to Cash of $15,000

1 points

QUESTION 10

Moomey Corporation had 20,000 shares of $4 par value common stock outstanding on January 1, 2013. On January 10, 2013, the firm purchased 2,000 of its outstanding shares for $18 per share. On July 22, 2013, it reissued 1,000 shares at $22 per share. Given this information, the entry to record the reissuance of the stock on July 22 would include a credit to:

Treasury stock of $4,000 Common stock of $4,000 Paid-In Capital of $18,000 Gain on Sale of Treasury Stock of $4,000

1 points

QUESTION 11

Reiser Co. has 8,000 shares of no-par common stock with a $50 stated value and 3,000 shares of $40 par, 5 percent noncumulative preferred stock outstanding. If the company declares a cash dividend of $22,000, the amount of the dividend paid to preferred stockholders is:

$5,000 $6,000 $11,000 $5,500

1 points

QUESTION 12

Which of the following would be reported as cash flow from financing activities

Cash receipts from the sale of equipment Cash receipts from interest on notes receivable Cash receipts from the issuance of long-term debt Cash receipts from dividends on long-term investments

1 points

QUESTION 13

Which of the following would be classified as an investing activity on a statement of cash flows

Cash recevied from dividends Cash paid for interest Cash received from the sale of land Cash used to repay principal amounts borrowed

1 points

QUESTION 14

Chen Corporation use the direct method of preparing a statement of cash flows. Based on the following cash flows during 2012, what is the net inflow (outflow) from investing activities:

Cash receipts from issuance of stock20,000Cash received from customers10,000Dividends received on long-term investments5,000Cash paid for wages6,000Cash paid for insurance500Cash paid for dividends3,000Cash paid to purchase a building30,000Loan made to another company 10,000

($10,000)

($30,000) ($40,000) ($43,000)

1 points

QUESTION 15

Based on the following information and using the direct method of preparing a statement of cash flows, what would be the net cash inflow (outflow) from financing activities?

Cash receipts from issuance of stock20,000Cash received from customers10,000Dividends received on long-term investments5,000Cash paid for wages6,000Cash paid for insurance500Cash paid for dividends3,000Cash paid to purchase a building30,000Loan made to another company 10,000 $20,000 $17,000 ($3,000) ($13,000)

1 points

QUESTION 16

If a company is to succeed over the long-term, positive cash flows are necessary from

Operating activities Investing activities Financing activities Both investing and financing activities

1 points

QUESTION 17

Given the following data and using the high-low method of analysis, total fixed costs are approximately:

MonthOverhead CostDirect Labor Hours July$32,0004,200August$28,5003,400September $24,0002,000October $38,5006,000November$45,0009,000December$41,0007,500 $8,000

$12,000

$10,000 $18,000

1 points

QUESTION 18

Using the following partial income statement, what is the company's contribution margin?

Sales revenue (4,500 at $75) $337,500 Variable expenses: Production Expenses$62,000 Selling Expenses$35,000 Administrative Expenses$38,000 Total variable expenses $135,000 Contribution Margin $202,500 Fixed Expenses $90,000 Net Income $112,500 $20 $30 $45

$75

1 points

QUESTION 19

Using the information below, determine the cost of good manufactured for the year.

Beginning work-in-process inventory$130,000Beginning raw materials inventory$47,500Ending work-in-process inventory$112,500Ending raw materials inventory$60,000Raw materials purchased$97,500Direct labor$93,000Manufacturing overhead$60,000

$238,000 $255,500 $373,000

$485,500

1 points

QUESTION 20

Mackie Co. manufactures hunting clothing. The standard variable costs to produce one batch of the Big Mac vests are as follows: direct material average cost is $6 per yard; average yards per batch is 30; direct labor average per hour is $5; average hours per batch is 4. The standard monthly fixed costs are as follows: manufacturing overhead is $3,200; selling and administrative costs are $1,900. Mackie produces 100 batches per month. (Ten vests are produced in each batch). What is the manufacturing cost per vest?

$5.10 $12.00 $23.20 $25.10

1 points