Managerial Accounting, 3e (Braun/Tietz)
Chaptery 2y Building Blocks of Managerial Accounting
1) Servicey companiesy musty carryy ay largey amounty ofy inventoryy toy meetyconsum
eryy demand. Answer: FALSE
Diff:yyy1
LO: 2-
1yEOC:
E2-1
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
2) Manufacturing companies usually have three types
ofyinventory. Answer: TRUE
Diff:yyy1
LO: 2-
1yEOC:
E2-1
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
3) Retailersy selly theiry productsy toyco
nsumers. Answer: TRUE
Diff:yyy1
LO: 2-
1yEOC:
E2-1
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
4) Merchandising companies include both wholesalers
andyretailers. Answer: TRUE
Diff:yyy1
LO: 2-
1yEOC:
S2-1
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
5) Ally companiesy havey they samey typesy ofyinve
ntories. Answer: FALSE
Diff:yyy1
LO: 2-
1yEOC:
S2-2
AACSB: Reflectivey Thinking
LearningyyyOutcome: Definey andyy useyy cost-volume-profityy analysisyy toyy analyzeyy the
1
, effectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
6) Onlyyy manufacturing yy companiesyy haveyy finished
goodsyinventory. Answer: TRUE
2
,Diff:yyy2
LO: 2-
1yEOC:
S2-2
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
7) Whichy ofy they followingy arey merchandising y companies?
A) Manufacturers
B) Retailers
C) Wholesalers
D) Bothyretailersyandywhol
esalers Answer: D
Diff:yyy1
LO: 2-
1yEOC: E2-
15A
AACSB: Analyticaly Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
8) Whichy ofy they followingy typesy ofy companiesy hasy rawy materials,y workyy inyprocessyy
y and finished goods inventory?
A) Retailers
B) Manufacturers
C) Wholesalers
D) Serviceyco
mpaniesyAns
wer: B
Diff:yyy1
LO: 2-
1yEOC:
S2-2
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
9) Whichy typey ofy company y makesy upy they largesty sectory ofy they Unitedy Statesyeconomy?
A) Manufacturers
B) Merchandising
C) Wholesalers
D) Service
companies Answer:
D
Diff:yyy1
LO: 2-
1yEOC:
S2-2
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
3
, inyy costsyy andyy volumeyy onyy ayy company'syy profits
10) They balanceyysheetyyofyyay serviceyycompanyyyhas
A) raw materials inventory.
B) littley ory noy inventory.
C) threey categories yy ofyy inventory.
D) twoy categories yy ofyy inventory.
4
Chaptery 2y Building Blocks of Managerial Accounting
1) Servicey companiesy musty carryy ay largey amounty ofy inventoryy toy meetyconsum
eryy demand. Answer: FALSE
Diff:yyy1
LO: 2-
1yEOC:
E2-1
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
2) Manufacturing companies usually have three types
ofyinventory. Answer: TRUE
Diff:yyy1
LO: 2-
1yEOC:
E2-1
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
3) Retailersy selly theiry productsy toyco
nsumers. Answer: TRUE
Diff:yyy1
LO: 2-
1yEOC:
E2-1
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
4) Merchandising companies include both wholesalers
andyretailers. Answer: TRUE
Diff:yyy1
LO: 2-
1yEOC:
S2-1
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
5) Ally companiesy havey they samey typesy ofyinve
ntories. Answer: FALSE
Diff:yyy1
LO: 2-
1yEOC:
S2-2
AACSB: Reflectivey Thinking
LearningyyyOutcome: Definey andyy useyy cost-volume-profityy analysisyy toyy analyzeyy the
1
, effectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
6) Onlyyy manufacturing yy companiesyy haveyy finished
goodsyinventory. Answer: TRUE
2
,Diff:yyy2
LO: 2-
1yEOC:
S2-2
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
7) Whichy ofy they followingy arey merchandising y companies?
A) Manufacturers
B) Retailers
C) Wholesalers
D) Bothyretailersyandywhol
esalers Answer: D
Diff:yyy1
LO: 2-
1yEOC: E2-
15A
AACSB: Analyticaly Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
8) Whichy ofy they followingy typesy ofy companiesy hasy rawy materials,y workyy inyprocessyy
y and finished goods inventory?
A) Retailers
B) Manufacturers
C) Wholesalers
D) Serviceyco
mpaniesyAns
wer: B
Diff:yyy1
LO: 2-
1yEOC:
S2-2
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
inyy costsyy andyy volumeyy onyy ayy company'syy profits
9) Whichy typey ofy company y makesy upy they largesty sectory ofy they Unitedy Statesyeconomy?
A) Manufacturers
B) Merchandising
C) Wholesalers
D) Service
companies Answer:
D
Diff:yyy1
LO: 2-
1yEOC:
S2-2
AACSB: Reflectivey Thinking
Learningyyy Outcome: Definey andy usey cost-volume-
profity analysis y toy analyzey theyeffectsyy of changes
3
, inyy costsyy andyy volumeyy onyy ayy company'syy profits
10) They balanceyysheetyyofyyay serviceyycompanyyyhas
A) raw materials inventory.
B) littley ory noy inventory.
C) threey categories yy ofyy inventory.
D) twoy categories yy ofyy inventory.
4
