chapter 2 accounting first quiz – Flashcards
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The balance sheet of a service company has
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little or no inventory
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Indirect materials, indirect labor, and indirect manufacturing costs are what type of manufacturing cost?
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manufacturing overhead
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Inventoriable product costs for a manufactured product include
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The correct answer is: the costs of direct materials, direct labor and manufacturing overhead.
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rent on factort
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product cost
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Before these materials are used to manufacture cabinets, a woodworker classifies lumber, paint, and glue as
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raw materials inventory
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How would Chevrolet classify its partially completed vehicles?
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work in process inventory
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Which of the following value chain elements is associated with the costs of shipping inventory to the retail outlet in a merchandising company?
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distribution
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Which element of the value chain would depreciation on a factory be classified as?
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production
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Which of the following types of companies has raw materials, work in process and finished goods inventory?
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manufacturers
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A factory janitor's wages would be classified as when determining the cost of a manufactured product
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indirect
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A salesperson's salary would be classified as when determining the cost of a manufactured product.
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period
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Inventoriable product costs for a manufactured product include
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The correct answer is: the costs of direct materials, direct labor and manufacturing overhead
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Where would period costs be found on the financial statements?
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The correct answer is: As operating expenses on the income statement in the period incurred
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Which of the following is an example of an inventoriable cost when manufacturing products?
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The correct answer is: Depreciation on factory equipment
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The income statements for both a merchandiser and manufacturer would include which of the following?
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operating expenses
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A merchandiser's purchases are equivalent to a manufacturer's
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cost of goods manufactured
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Conversion costs consist of
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direct labor and manufacturing overhead
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An example of direct labor would be which of the following?
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wages of assembly line produced
