TEST 1 CHAPTERS 10 & 11 (10 questions chapter 10, 10 questions chapter 11)

1. Comparison of financial accounting and managerial accounting (look at the

chart in book)
2. Example of a company- syrup (direct material), the labor of the people on
assembly line (direct labor), manufacturing overhead (find example), which
of the following is a direct cost (direct materials or direct labor)?
3. Manufacturing company, all of the following except for which one, is a
product cost? - looking for some sort of period cost
4. See attachment on excel
5. Which of the following is an expense?
a. Direct materials
b. Direct labor
c. Manufacturing overhead
d. S g a expense (selling, general, and administrative expenses)
6. Product vs. selling, general, and administrative costs (s,g,a)… which of the
following is a FALSE statement?
7. Upstream, midstream, and downstream costs… all of the following are
examples of one of those three except (look up definitions)
8. Too much inventory, too little inventory (look it up, problems of each one?)
9. Which of the following is a certain characteristic of managerial accounting?
10.See attachment
11.General question regarding fixed costs-TRUE STATEMENTS: total fixed costs
are constant, fixed cost per unit fluctuates (more activity lower fixed cost
per unit, less activity more fixed cost per unit)
12.Company, an expense described. Is this an example of variable, mixed,
fixed, or none of the above? (LOOK UP DEFINITIONS)
a. Mixed-fixed and variable (telephone costs)
b. Fixed- all the same
c. Variable- fluctuates with activity
13.See attachment
14.Operating leverage (READ DEFINITION)
15.See attachment
16.Three companies with their contribution margin income statement (look up
formula for margin income statement)- which company has the highest
operating leverage? (look up operating leverage formula)
17.Which of the following is NOT FOUND on a contribution margin format
income statement?
a. What is on it: sales, vc, cm, fc NI –these are what IS ON IT so NONE of
these are the answers
18.See attachment
19.See attachment
20.See attachment (look up excel sheet he puts online)