test chapter 2

test chapter 2 - Managerial accounting A has its primary...

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Managerial accounting: A) has its primary emphasis on the future. D) Responses a, b, and c are all correct. C) focuses on the organization as a whole, rather than on the organization's segments. B) is required by regulatory bodies such as the SEC. Each of the following would be classified as variable in terms of cost behavior except: direct materials. sales commissions. cost of shipping goods to customers via express mail. plant manager's salary. The Lyons Company's cost of goods manufactured was $120,000 when its sales were $360,000 and its gross margin was $220,000. If the ending inventory of finished goods was $30,000, the beginning inventory of finished goods must have been: $50,000 $20,000 $150,000 $110,000 Green Company's costs for the month of August were as follows: direct materials, $27,000; direct labor, $34,000; selling, $14,000; administrative, $12,000; and manufacturing overhead, $44,000. The beginning work in process inventory was $16,000 and the ending work in process inventory was $9,000. What was the cost of goods manufactured for the month? $138,000 $112,000 $132,000 $105,000 For each cost item, indicate whether it would be variable or fixed with respect to the number of units produced and sold; and then whether it would be a selling cost, an administrative cost, or a manufacturing cost. If it is a manufacturing cost, indicate whether it would typically be treated as a direct cost or an indirect cost with respect to units of product. Select "None" if none of the categories apply for a particular item. Cost Item Cost Behavior Classification 1. Property taxes, factory 2. Boxes used for packaging detergent produced by the company 3. Salespersons' commissions 4. Supervisor's salary, factory 5. Depreciation, executive autos 6. Wages of workers
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This note was uploaded on 12/13/2011 for the course ACCT 201 taught by Professor Balli during the Spring '11 term at greenriver.edu.

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test chapter 2 - Managerial accounting A has its primary...

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