Managerial Accounting Exam #1 (100% Errorless Answers)

which of the following types of companies would have work in process inventory? Service, Merchandising, and Manufacturing correct answers Manufacturing Which of the following is not an activity in the value chain? correct answers Administration A cost that can be traced to a cost object is known as an correct answers Direct costs Period costs are often referred to as correct answers Operating expenses Conversion costs consists of correct answers Direct labor and manufacturing overhead Which of the following is NOT part of manufacturing overhead? correct answers Period costs, such as depreciation on office computers Which of the following types of companies will always have the Cost of Goods Sold account on their income statements? correct answers Merchandising and Manufacturing companies Sunk costs are generally relevant to decisions correct answers FALSE Fixed costs stay constant in total over a wide range of activity levels correct answers TRUE a manufacturer company has three kinds of inventory correct answers - Raw materials inventory - Work in process inventory - Finished goods inventory on the balance sheet A merchandising company has a correct answers single inventory account on the balance sheet A service company correct answers Has no inventory on the balance sheet Marketing correct answers cost of a prime-time TV ad featuring smucker's fruit and honey fruit spreads Design correct answers Salary of engineers who are designing the new plants layout Production correct answers Depreciation on Orrville, Ohio plant Plant manager's salary Purchase of strawberries used in Smucker's Strawberry Preserves Distribution correct answers Depreciation on delivery vehicles Transportation costs to deliver Folgers coffee to retailers such as Walmart Customer Service correct answers costs of a customer support center website