Fundamentals of Accounting

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Correct options are highlighted when revealed.

1.Given that the cost to produce one unit is $70 and the company manufactures 6,000 units, what is the total manufacturing expense?

$240,000$320,000$210,000$420,000

2.Given that the total production cost amounts to $40,000 and the total output is 500 units, what is the cost incurred per unit?

$80$65$7$35

3.Given that each unit costs $50 to produce and the company manufactures 5,000 units, what is the total manufacturing expense?

$220,000$232,000$250,000$25,000

4.What is the term for the usual span of activity within which a direct correlation between activity level and costs exists?

5.Which type of companies purchase raw materials and transform them into final products for consumers?

6.Which of the following types of companies belong to the merchandising industry?

Companies involved in food manufacturingVehicle manufacturing firmsBusinesses that handle product distributionMarketing and promotional firms

7.Which of the following types of companies belong to the manufacturing industry?

logistics firmsfabric production companiessales outletsonline connectivity providers

8.Given a total production expense of $60,000 and a total output of 3,000 units, what is the cost incurred for each individual unit?

9.Which of the following is classified as a service sector company?

Manufacturers of mobile phonesInvestment fund firmsBroadcasting stationsDistribution merchants

10.Which category do companies belong to if they primarily offer services rather than goods?

Businesses involved in productionCompanies focused on retail and salesOrganizations within the service industryFirms supplying raw materials

11.Which type of companies buy completed products and then resell them to consumers in the market?

companies in the service industryfirms dealing with raw materialsorganizations involved in productionbusinesses operating in the merchandising sectornone of the above

12.What term describes inventory made up of raw materials that are yet to be utilized in the manufacturing process?

completed products inventorymaterials not directly used inventoryraw materials inventoryinventory of goods being produced

13.What is the term for the cost obtained by dividing the overall manufacturing expenses by the number of units produced?

cost per unitaggregate costtotal overhead costcomprehensive effective cost

14.Which of the following is not classified as a type of inventory in cost accounting?

Raw materials inventoryGoods in production inventoryCompleted products inventoryIndirect materials inventory