Question 1

Select the appropriate definition for each of the items listed below.
a.
Work in process inventory
b.
Finished goods inventory
c.
Cost of goods sold
d.
Cost of goods manufactured
e.
Total manufacturing costs
-(direct materials + direct labor + overhead) +/-the change in work in process inventory from the beginning to the end of the current period

Accepted Answer

This formula represents the cost of goods manufactured, which includes all the costs incurred to produce completed goods during a certain period, including direct materials, direct labor, and overhead expenses. The change in work in process inventory from the beginning to the end of the current period is also included because it reflects the amount of production activity during that period.

Question 2

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-Medical clinic

Accepted Answer

The output of a medical clinic is primarily a service, which is an intangible product. While physical goods such as medications and medical devices may also be provided, the main output of a medical clinic is the service of medical care, which cannot be held or touched.

Question 3

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-Video rental

Accepted Answer

Video rental services provide access to digital content or physical media for a limited time, which is an intangible service rather than a tangible product.

Question 4

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-Car manufacturer

Accepted Answer

Car manufacturers produce physical products (cars) that can be touched, seen and used by consumers. Hence, the output generated by car manufacturers would be classified as tangible goods.

Question 5

Select the appropriate item for each of the definitions listed below.
a.
gross margin
b.
selling expenses
c.
sales revenue
d.
cost of goods sold
e.
operating income
-price x units sold

Accepted Answer

Sales revenue is calculated by multiplying the price of a product or service by the number of units sold.

Question 6

Select the appropriate classification of the items listed below.
a.
selling expense
b.
administrative expense
c.
direct materials
d.
direct labor
e.
overhead
-Salary of chief executive officer

Accepted Answer

The salary of a chief executive officer would typically fall under administrative expenses, as it is a cost associated with the management and administration of the company.

Question 7

Select the appropriate item for each of the definitions listed below.
a.
gross margin
b.
selling expenses
c.
sales revenue
d.
cost of goods sold
e.
operating income
-marketing and distributing costs

Accepted Answer

Marketing and distributing costs fall under the category of "selling expenses" which include the costs associated with advertising, sales commissions, and promotional activities.

Question 8

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-Fast food restaurant

Accepted Answer

Fast food restaurants produce tangible outputs, as they provide physical food items that customers can eat.

Question 9

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-Law firm

Accepted Answer

The output generated by a law firm is intangible because it is a service that cannot be physically held or touched.

Question 10

Select the appropriate definition for each of the items listed below.
a.
Work in process inventory
b.
Finished goods inventory
c.
Cost of goods sold
d.
Cost of goods manufactured
e.
Total manufacturing costs
-The cost of units unfinished at the end of the current period

Accepted Answer

The cost of units unfinished at the end of the current period is considered work in process inventory, as they are still in the process of being manufactured and have not yet been completed or sold.

Question 11

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-Professional sports franchise

Accepted Answer

The output generated by a professional sports franchise, such as entertainment or competition, is intangible as it cannot be physically touched or measured.

Question 12

Select the appropriate definition for each of the items listed below.
a.
Work in process inventory
b.
Finished goods inventory
c.
Cost of goods sold
d.
Cost of goods manufactured
e.
Total manufacturing costs
-Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Accepted Answer

This formula represents the cost of goods sold, which is the total cost of the goods that were sold during a specific period.

Question 13

Select the appropriate item for each of the definitions listed below.
a.
gross margin
b.
selling expenses
c.
sales revenue
d.
cost of goods sold
e.
operating income
-sales revenue -cost of goods sold

Accepted Answer

Gross margin is calculated as sales revenue minus the cost of goods sold, which matches the definition provided.

Question 14

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-Bowling alley

Accepted Answer

A bowling alley provides a service, which is an intangible output, as it does not result in the ownership of a physical product.

Question 15

Select the appropriate definition for each of the items listed below.
a.
Work in process inventory
b.
Finished goods inventory
c.
Cost of goods sold
d.
Cost of goods manufactured
e.
Total manufacturing costs
-The cost of units finished but not sold at the end of the current period

Accepted Answer

Units finished but not sold at the end of the current period are considered as Finished goods inventory.

Question 16

Select the appropriate classification of the items listed below.
a.
selling expense
b.
administrative expense
c.
direct materials
d.
direct labor
e.
overhead
-Cost of engines in the manufacture of airplanes

Accepted Answer

The cost of engines is directly related to the production of airplanes and is considered as a direct material cost. Direct materials are the materials that are directly used in the production process and have a significant role in the final product. Therefore, option C is the most appropriate classification for the cost of engines in the manufacture of airplanes.

Question 17

Select the appropriate definition for each of the items listed below.
a.
Work in process inventory
b.
Finished goods inventory
c.
Cost of goods sold
d.
Cost of goods manufactured
e.
Total manufacturing costs
-Direct materials + direct labor + overhead

Accepted Answer

Total manufacturing costs include direct materials, direct labor, and overhead, which are all the costs directly involved in manufacturing a product.

Question 18

Select the appropriate classification of the items listed below.
a.
selling expense
b.
administrative expense
c.
direct materials
d.
direct labor
e.
overhead
-A professor's salary at a university

Accepted Answer

The answer of Select the appropriate classification of the items...

Question 19

Select the appropriate item for each of the definitions listed below.
a.
gross margin
b.
selling expenses
c.
sales revenue
d.
cost of goods sold
e.
operating income
-gross margin - selling and administrative expenses

Accepted Answer

Operating income is calculated by subtracting selling and administrative expenses from gross margin.

Question 20

Select the appropriate classification of the output generated by each of the following industries.
a.
Tangible
b.
Intangible
-CPA firm

Accepted Answer

The output generated by a CPA firm is intangible as it is a service that involves providing expertise, advice, and assurance on financial matters. There is no physical product that is produced as a result of their services.

Quiz 2: Basic Managerial Accounting Concepts

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Medical clinic

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Video rental

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Car manufacturer

Select the appropriate item for each of the definitions listed below. a. gross margin b. selling expenses c. sales revenue d. cost of goods sold e. operating income -price x units sold

Select the appropriate classification of the items listed below. a. selling expense b. administrative expense c. direct materials d. direct labor e. overhead -Salary of chief executive officer

Select the appropriate item for each of the definitions listed below. a. gross margin b. selling expenses c. sales revenue d. cost of goods sold e. operating income -marketing and distributing costs

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Fast food restaurant

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Law firm

Select the appropriate definition for each of the items listed below. a. Work in process inventory b. Finished goods inventory c. Cost of goods sold d. Cost of goods manufactured e. Total manufacturing costs -The cost of units unfinished at the end of the current period

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Professional sports franchise

Select the appropriate item for each of the definitions listed below. a. gross margin b. selling expenses c. sales revenue d. cost of goods sold e. operating income -sales revenue -cost of goods sold

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -Bowling alley

Select the appropriate definition for each of the items listed below. a. Work in process inventory b. Finished goods inventory c. Cost of goods sold d. Cost of goods manufactured e. Total manufacturing costs -The cost of units finished but not sold at the end of the current period

Select the appropriate classification of the items listed below. a. selling expense b. administrative expense c. direct materials d. direct labor e. overhead -Cost of engines in the manufacture of airplanes

Select the appropriate definition for each of the items listed below. a. Work in process inventory b. Finished goods inventory c. Cost of goods sold d. Cost of goods manufactured e. Total manufacturing costs -Direct materials + direct labor + overhead

Select the appropriate classification of the items listed below. a. selling expense b. administrative expense c. direct materials d. direct labor e. overhead -A professor's salary at a university

Select the appropriate item for each of the definitions listed below. a. gross margin b. selling expenses c. sales revenue d. cost of goods sold e. operating income -gross margin - selling and administrative expenses

Select the appropriate classification of the output generated by each of the following industries. a. Tangible b. Intangible -CPA firm