Managerial Accounting Practice Questions.doc

Managerial Accounting Practice Questions.doc - All Practice...

This preview shows page 1 - 4 out of 7 pages.

All Practice Exercises/Problems can be found at the end of their respective chapters. Should be done on excel. 2-45: Cape Cod Shirt Shop manufacturers T-shirts and decorates them with custom designs for retail sale on the premises. Several costs incurred by the company are listed below. For east cost, indicate which of the following classification best describe the cost. More than one classification may apply to the same cost item. Cost Classification: a. Variable: b. Fixed: c. Period: d. Product: e. Administrative: f. Selling g. Manufacturing h. Research & Development i. Direct material j. Direct labor k. Manufacturing overhead Cost Items: 1. Cost of fabric used in T-shirts: A, D, G, I 2 .Wages of shirt makers: A, D, G, J 3. Cost of new sign in front of retail T-shirt shop: B, F, H 4. Wage of the employee who repairs the firms sewing machines: B, C, G, K 5. Cost of electricity used in the sewing department: A, D, G, K
Image of page 1

Subscribe to view the full document.

6. Wages of T-shirt designers and painters: A, D, G, J 7. Wages of sales personnel: A, D, F 8. Depreciation on sewing machines: B, C, G, K 9. Rent on the building. Part of the buildings first floor is used to make and pain T-shirts. Part of it is used for retail sales shop. B,C, D,E,F, K The second floor is used for administrative offices and storage of raw material and finished goods. B, D,, K 10. Cost of daily advertisements in local media: B, C, F 11. Wages of designers who experiment with new fabrics, paints, and T-shirt designs. B,D,G,K 12. Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop. A, C, F 13. Salary of the owner’s secretary. B,C,E, 14. Cost of repairing the gas furnace. B,D,K 15. Cost of insurance for the production of employees. B,D,K 2-53: Several costs incurred by Bayview Hotel and Restaurant are given in the following list. For each cost indicate which of the following classifications best describe the cost. More than one classification may apply to the same cost item. a. Direct cost of the food and beverage department b. Indirect cost of the food and beverage department c. Controllable by the kitchen manager d. Uncontrollable by the kitchen manager e. Controllable by the hotel general manager f. Uncontrollable by the hotel general manager g. Differential cost h. Marginal cost
Image of page 2
i. Opportunity Cost j. Sunk Costs k. Out of Pocket Cost Cost Items: 1.
Image of page 3

Subscribe to view the full document.

Image of page 4
  • Spring '11
  • Byzalov
  • general manager

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern