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Chapter 2 Questions
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Questions in this quiz (9)
1Product (or manufacturing) costs consist of:
- Aselling and administrative costs.
- Bmanufacturing overhead, direct materials, and supplies expense.
- Cdirect materials, direct labor and selling costs.
- Dprime costs and manufacturing overhead,
- Edirect labor, indirect labor, and sales commission expense
2The accountant in a factory that produces biscuits for fast-food restaurants wants to assign costs to boxes of biscuits. Which of the following costs can be traced directly to boxes of biscuits?
- AThe cost of flour and baking soda
- BThe cost of milk and eggs used in biscuit mix
- CThe cost of baking oil and butter
- DThe cost of the salt and other spices used
- EAll of the above are correct
3Which of the following is an indirect cost?
- AThe cost of mixing labor in a factory that makes over-the-counter pain relievers
- BThe cost of denim in a jeans factory
- CThe cost of restriping the parking lot at a perfume factory
- DThe cost of bottles in a shampoo factory
- EAll of these choices are correct.
4Bobby Dee's is an owner-operated company that details (thoroughly cleans—inside and out) automobiles. Bobby Dee's is which of the following?
- AService firm
- BRetailer
- CWholesaler
- DManufacturing firm
- ENone of these choices are correct
5Kellogg's makes a variety of breakfast cereals. Kellogg's is which of the following?
- AWholesaler
- BRetailer
- CService firm
- DManufacturing firm
- ENone of these choices are correct
6Target is which of the following?
- AWholesaler
- BRetailer
- CService firm
- DManufacturing firm
- ENone of these choices are correct
7Stone Inc. is a company that purchases goods (e.g., chess sets, pottery) from overseas and resells them to gift shops in the United States. Stone Inc. is which of the following?
- AWholesaler
- BRetailer
- CService firm
- DManufacturing firm
- ENone of these choices are correct.
8Which of the following is a period expense?
- AFactory insurance
- BCEO salary
- CDirect labor
- DFactory maintenance
- EAll of these choices are correct
9Accumulating costs means that
- Acosts must be compared to previous periods to identify trends.
- Beach cost must be linked to some cost object.
- Ccosts must be measured and tracked
- Dcosts must be summed and entered on the income statement.
- Ecosts have expired and must be transferred from the balance sheet to the income statement.
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- accounting Quiz on Chapter 2 Questions, created by Alexa Wood on 08/05/2017.
- Author
- Alexa Wood
- Language
- English
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