Week 4 Midterm - Question 1(TCO 1 The goal of managerial...

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Question 1: (TCO 1) The goal of managerial accounting is to provide information that managers need for A) planning. B) control. C) decision making. D) All of the above
Instructor Explanation: See Chapter 1, page 4. Points Received: 4 of 4 Question 2. Question : (TCO 1) Which of the following costs does not change when the level of business activity changes?
Instructor Explanation: See Chapter 1, page 9. Points Received: 4 of 4 Question 3. Question : (TCO 1) You own a car and are trying to decide whether or not to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?
Instructor Explanation: See Chapter 1, page 9. Points Received: 0 of 4
Question 4. Question : (TCO 1) Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. Which is the budgeted fixed cost per unit?
Instructor Explanation: See Chapter 1, page 9. This formula shows that ($1,700 + $800 + $600) / 1,600 = $1.94. Points Received: 0 of 4 Question 5. Question : (TCO 1) Which of the following costs is part of manufacturing overhead? A) Indirect labor B) Direct labor C) Salaries for the accounting personnel D) Wages for the janitorial staff for the sales offices
Instructor Explanation: See Chapter 2, page 37. Points Received: 4 of 4 Question 6. Question : (TCO 1) Product costs
Instructor Explanation: See Chapter 2, page 38.
Points Received: 4 of 4 Question 7. Question : (TCO 1) Red Runner’s Work in Process Inventory account has a beginning balance of $50,000 and an ending balance of $40,000. Direct materials used are $70,000, and direct labor used totals $35,000. Cost of goods sold totals $135,000. Manufacturing overhead applied is $20,000. How much is cost of goods manufactured?
Points Received: 4 of 4

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