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Unformatted text preview: Practice Test Chapter 2 Accounting 203 1. Haak Inc. is a merchandising company. Last month the company's cost of goods sold was $62,000. The company's beginning merchandise inventory was $15,000 and its ending merchandise inventory was $21,000. What was the total amount of the company's merchandise purchases for the month? A) $56,000 B) $68,000 C) $98,000 D) $62,000 2. Wages paid to the factory supply shop foreman are considered an example of: Direct Labor Period Cost A) Yes No B) No Yes C) No No D) Yes Yes 3. When volume or level of activity decreases, variable costs will: A) decrease in total. B) decrease per unit. C) increase in total. D) increase per unit. 4. Among the costs Kunee Company incurred during the month of August were the following: 1) $15,000 for coolant used in the headquarters office air conditioning system. 2) $5,000 for property taxes on the factory building. 3) $10,000 for depreciation on trucks used to deliver products to customers....
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- Spring '10