Manufacturing Costs Quiz

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Which of the following costs are considered irrelevant to decision making?

Controllable costs for management

Future costs that can be influenced

Uncontrollable costs that can be modified

Sunk costs from previous decisions (correct)

What characteristic defines fixed costs?

They change with production levels.

They are influenced by management decisions.

They fluctuate with market conditions.

They remain constant over a wide range of activity levels. (correct)

How do total variable costs behave as production increases?

They increase. (correct)

They remain the same.

They fluctuate.

They decrease.

Which statement accurately describes controllable costs?

They can be influenced or changed by management actions. (D) Signup and view all the answers

What are the future-focused costs in decision making?

Costs that influence future decisions. (D) Signup and view all the answers

Which of the following describes the behavior of variable costs per unit?

They remain constant regardless of production changes. (C) Signup and view all the answers

Which of the following describes the way in which total fixed costs behave?

They will remain the same as production levels change. (D) Signup and view all the answers

How do fixed costs per unit behave as production levels change?

They will increase as production increases. (B) Signup and view all the answers

What is the first step to convert a data set to an Excel table?

Click on any cell in the data set. (D) Signup and view all the answers

What is typically done after clicking the Table icon in Excel?

You must specify the data range to be converted. (A) Signup and view all the answers

Which of the following can be used to extract a specific subset of data from a larger data set?

Filtering the data to isolate the desired subset. (D) Signup and view all the answers

How does Honda classify steel, glass, and plastic before they are used in manufacturing cars?

Raw materials inventory (B) Signup and view all the answers

What category does Walmart use to classify clothing held for sale?

Merchandise inventory (C) Signup and view all the answers

Which classification would Honda use for its partially completed vehicles?

Work in process (B) Signup and view all the answers

What is the term used for the promotion of products and services within the value chain?

Marketing (A) Signup and view all the answers

In terms of the value chain, where would depreciation on a factory be classified?

Production (D) Signup and view all the answers

Which area of the value chain would a technical support hotline for customers fall under?

Customer service (A) Signup and view all the answers

What distinguishes direct costs from indirect costs?

Direct costs can be easily traced to a cost object, whereas indirect costs cannot. (D) Signup and view all the answers

In which situation would a cost be considered indirect?

The salary of a plant manager overseeing multiple cost objects. (B) Signup and view all the answers

What is the Net Sales for the Merchandising/Manufacturing Company?

$100,000 (A) Signup and view all the answers

Which of the following expenses is not listed for the Service Company?

Cost of Goods Sold (C) Signup and view all the answers

What is the Gross Income for the Merchandising/Manufacturing Company?

$60,000 (C) Signup and view all the answers

How is the Cost of Goods Sold calculated for a Merchandiser?

Beginning Inventory + Purchases - Ending Inventory (C) Signup and view all the answers

What is the total amount of Operating Expenses listed for the Merchandising/Manufacturing Company?

$32,000 (D) Signup and view all the answers

Which figure contributes to the calculation of Net Operating Income for the Merchandising/Manufacturing Company?

Gross Income (A) Signup and view all the answers

What is the total Net Income for the Service Company?

$69,000 (D) Signup and view all the answers

What amounts to the Returns & Allowances for the Merchandising/Manufacturing Company?

$8,000 (C) Signup and view all the answers

Which of the following is classified as a product cost of a manufacturer?

Wages of assembly line workers (D) Signup and view all the answers

Which of the following represents conversion costs?

Wages of assembly line workers (A) Signup and view all the answers

What type of inventory is not found on the balance sheet of a service company?

Raw materials (B), Work in process (D) Signup and view all the answers

Depreciation on automated production equipment is categorized as what type of cost?

Manufacturing overhead (C) Signup and view all the answers

Which of the following costs would be classified as prime costs?

Direct materials used in production (C) Signup and view all the answers

Which of the following would be classified as a period cost?

Salaries of administrative staff (B) Signup and view all the answers

What type of inventory accounts are maintained by a manufacturer?

Raw materials, work in process, and finished goods (D) Signup and view all the answers

Which of the following costs contributes to manufacturing overhead?

Quality control salaries (C) Signup and view all the answers