Question 1

Select the appropriate classification of the output generated by each of the following industries.
-Medical clinic
A)Tangible
B)Intangible

Accepted Answer

The output of a medical clinic, such as a diagnosis or treatment plan, is intangible as it is a service provided to patients rather than a physical product.

Question 2

Select the appropriate definition for each of the items listed below.
-Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory
A)Work in process inventory
B)Finished goods inventory
C)Cost of goods sold
D)Cost of goods manufactured
E)Total manufacturing costs

Accepted Answer

This formula represents the cost of goods sold, which is the cost of the products that have been sold during a specific period.

Question 3

Select the appropriate classification of the output generated by each of the following industries.
-Video rental
A)Tangible
B)Intangible

Accepted Answer

The output of video rental services is considered intangible because it primarily involves the provision of a service (renting videos) rather than a physical, tangible product.

Question 4

Select the appropriate classification of the output generated by each of the following industries.
-Fast food restaurant
A)Tangible
B)Intangible

Accepted Answer

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

Question 5

Select the appropriate definition for each of the items listed below.
-Direct materials + direct labor + overhead
A)Work in process inventory
B)Finished goods inventory
C)Cost of goods sold
D)Cost of goods manufactured
E)Total manufacturing costs

Accepted Answer

Total manufacturing costs include all the direct materials, direct labor, and overhead costs incurred to manufacture products.

Question 6

Select the appropriate item for each of the definitions listed below.
-marketing and distributing costs
A)gross margin
B)selling expenses
C)sales revenue
D)cost of goods sold
E)operating income

Accepted Answer

Marketing and distributing costs are typically considered part of selling expenses, which include advertising, sales commissions, and other costs associated with getting a product or service in front of customers. The other choices relate to different aspects of a company's financial performance: gross margin is the profit left over after subtracting the cost of goods sold from sales revenue, cost of goods sold is the expense associated with producing or acquiring the goods, sales revenue is the total amount earned from sales, and operating income is the profit left over after subtracting all operating expenses from gross profit.

Question 7

Select the appropriate classification of the output generated by each of the following industries.
-Bowling alley
A)Tangible
B)Intangible

Accepted Answer

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

Question 8

Select the appropriate definition for each of the items listed below.
-The cost of units finished but not sold at the end of the current period
A)Work in process inventory
B)Finished goods inventory
C)Cost of goods sold
D)Cost of goods manufactured
E)Total manufacturing costs

Accepted Answer

Finished goods inventory refers to the cost of units that have been completed but not yet sold.

Question 9

Select the appropriate classification of the items listed below.
-Cost of engines in the manufacture of airplanes
A)selling expense
B)administrative expense
C)direct materials
D)direct labor
E)overhead

Accepted Answer

The cost of engines in the manufacture of airplanes would be considered a direct material, as it is a raw material that is directly and physically incorporated into the airplane during the manufacturing process. Selling expense and administrative expense are both indirect costs that are not directly related to the manufacturing of the product. Direct labor refers to the wages and salaries paid to workers who are directly involved in the manufacturing process, and overhead includes all indirect costs associated with manufacturing, such as rent, utilities, and maintenance.

Question 10

Select the appropriate item for each of the definitions listed below.
-gross margin - selling and administrative expenses
A)gross margin
B)selling expenses
C)sales revenue
D)cost of goods sold
E)operating income

Accepted Answer

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

Question 11

Select the appropriate item for each of the definitions listed below.
-sales revenue - cost of goods sold
A)gross margin
B)selling expenses
C)sales revenue
D)cost of goods sold
E)operating income

Accepted Answer

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

Question 12

Select the appropriate classification of the items listed below.
-A professor's salary at a university
A)selling expense
B)administrative expense
C)direct materials
D)direct labor
E)overhead

Accepted Answer

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

Question 13

Select the appropriate classification of the output generated by each of the following industries.
-CPA firm
A)Tangible
B)Intangible

Accepted Answer

The output generated by a CPA firm is intangible as it involves providing services and expertise to clients, rather than physical products.

Question 14

Select the appropriate item for each of the definitions listed below.
-price x units sold
A)gross margin
B)selling expenses
C)sales revenue
D)cost of goods sold
E)operating income

Accepted Answer

Sales revenue is the total amount of money received from selling products or services, which is calculated by multiplying the price per unit by the number of units sold.

Question 15

Select the appropriate classification of the items listed below.
-Salary of chief executive officer
A)selling expense
B)administrative expense
C)direct materials
D)direct labor
E)overhead

Accepted Answer

CEO salary is an administrative expense as it is a cost incurred in the administration of the business. It is not part of the cost of goods sold or production process, so it cannot be classified as direct materials, direct labor, or overhead. It is also not a selling expense as it is not directly related to the marketing or selling of the company's products or services.

Question 16

Select the appropriate classification of the output generated by each of the following industries.
-Law firm
A)Tangible
B)Intangible

Accepted Answer

The output generated by a law firm is intangible because it primarily consists of services and expertise provided by lawyers and legal staff, rather than physical products.

Question 17

Select the appropriate classification of the output generated by each of the following industries.
-Car manufacturer
A)Tangible
B)Intangible

Accepted Answer

The output generated by car manufacturers is tangible as they produce physical products in the form of automobiles.

Question 18

Select the appropriate classification of the output generated by each of the following industries.
-Professional sports franchise
A)Tangible
B)Intangible

Accepted Answer

The output of a professional sports franchise is intangible because it is a service provided to customers (spectators) through entertainment rather than a physical product.

Question 19

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

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 20

Select the appropriate definition for each of the items listed below.
-The cost of units unfinished at the end of the current period
A)Work in process inventory
B)Finished goods inventory
C)Cost of goods sold
D)Cost of goods manufactured
E)Total manufacturing costs

Accepted Answer

The cost of units unfinished at the end of the current period is referring to the cost of materials and labor that have been put into products that are in the process of being made, but are not yet completed. This is a typical definition of Work in process inventory.

Quiz 2: Basic Managerial Accounting Concepts

Select the appropriate classification of the output generated by each of the following industries. -Medical clinic

Select the appropriate definition for each of the items listed below. -Beginning finished goods inventory + Cost of goods manufactured - Ending finished goods inventory

Select the appropriate classification of the output generated by each of the following industries. -Video rental

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

Select the appropriate definition for each of the items listed below. -Direct materials + direct labor + overhead

Select the appropriate item for each of the definitions listed below. -marketing and distributing costs

Select the appropriate classification of the output generated by each of the following industries. -Bowling alley

Select the appropriate definition for each of the items listed below. -The cost of units finished but not sold at the end of the current period

Select the appropriate classification of the items listed below. -Cost of engines in the manufacture of airplanes

Select the appropriate item for each of the definitions listed below. -gross margin - selling and administrative expenses

Select the appropriate item for each of the definitions listed below. -sales revenue - cost of goods sold

Select the appropriate classification of the items listed below. -A professor's salary at a university

Select the appropriate classification of the output generated by each of the following industries. -CPA firm

Select the appropriate item for each of the definitions listed below. -price x units sold

Select the appropriate classification of the items listed below. -Salary of chief executive officer

Select the appropriate classification of the output generated by each of the following industries. -Law firm

Select the appropriate classification of the output generated by each of the following industries. -Car manufacturer

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

Select the appropriate definition for each of the items listed below. -(direct materials + direct labor + overhead) +/- the change in work in process inventory from the beginning to the end of the current period

Select the appropriate definition for each of the items listed below. -The cost of units unfinished at the end of the current period