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MGMT 200 EXAM 2 (PURDUE UNIVERSITY) NEWEST
2026 EXAM 2 AND PRACTICE EXAM 300 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST EXAM!!
Which of the following is nota period cost?
A. Legal costs
B. Public relations costs
C. Sales commissions
D. Wages of assembly‐line workers
E. The salary of a company's chief financial officer (CFO).
- ANSWER-D. Wages of assembly‐line workers
Consider the following year‐end information for Knomark
Corporation:
Cost of goods sold $500,000
Sales revenue 1,000,000
Nonoperating expenses 100,000
Operating expenses 200,000
What amount will Knomark report for operating income?
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A. $ ‐ 0 ‐
B. $500,000
C. $200,000
D. $300,000 - ANSWER-D. $300,000
Consider the following year‐end information for
Amalgamated Corporation:
Cost of goods sold $500,000
Sales revenue 1,000,000
Nonoperating expenses 100,000
Operating expenses 300,000
Income tax expense 100,000
What amount will Amalgamated report for operating
income?
A. $100,000
B. $300,000
C. $500,000
D. $200,000 - ANSWER-D. $200,000
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Inventory methods such as LIFO and FIFO deal more with
goods flow than with cost flow.
A. True
B. False - ANSWER-B. False
The inventory cost flow assumption that generally best
matches the physical flow of inventory is:
A. FIFO
B. LIFO
C. Weighted‐average
D. Lower of cost or net realizable value - ANSWER-A.
FIFO
The inventory cost flow assumption that is least likely to
match the physical flow of inventory for most companies
is:
A. FIFO
B. LIFO
C. Weighted‐average
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D. Specific identification - ANSWER-B. LIFO
In accounting for inventory, the assumed cost flow must
match the physical goods flow.
A. True
B. False - ANSWER-B. False
A company has the following inventory transactions:
Jan. 1 Beginning inventory 100 units @ $4 each
Jan. 15 Purchase 100 units @ $5 each
Jan. 31 Purchase 100 units @ $6 each
What would be the cost of goods sold under the FIFO
method if 120 units were sold in January?
A. $ 600
B. $ 500
C. $ 620
D. $ 720 - ANSWER-B. $500
MGMT 200 EXAM 2 (PURDUE UNIVERSITY) NEWEST
2026 EXAM 2 AND PRACTICE EXAM 300 QUESTIONS
AND CORRECT DETAILED ANSWERS (VERIFIED
ANSWERS) |ALREADY GRADED A+||NEWEST EXAM!!
Which of the following is nota period cost?
A. Legal costs
B. Public relations costs
C. Sales commissions
D. Wages of assembly‐line workers
E. The salary of a company's chief financial officer (CFO).
- ANSWER-D. Wages of assembly‐line workers
Consider the following year‐end information for Knomark
Corporation:
Cost of goods sold $500,000
Sales revenue 1,000,000
Nonoperating expenses 100,000
Operating expenses 200,000
What amount will Knomark report for operating income?
,2|Page
A. $ ‐ 0 ‐
B. $500,000
C. $200,000
D. $300,000 - ANSWER-D. $300,000
Consider the following year‐end information for
Amalgamated Corporation:
Cost of goods sold $500,000
Sales revenue 1,000,000
Nonoperating expenses 100,000
Operating expenses 300,000
Income tax expense 100,000
What amount will Amalgamated report for operating
income?
A. $100,000
B. $300,000
C. $500,000
D. $200,000 - ANSWER-D. $200,000
,3|Page
Inventory methods such as LIFO and FIFO deal more with
goods flow than with cost flow.
A. True
B. False - ANSWER-B. False
The inventory cost flow assumption that generally best
matches the physical flow of inventory is:
A. FIFO
B. LIFO
C. Weighted‐average
D. Lower of cost or net realizable value - ANSWER-A.
FIFO
The inventory cost flow assumption that is least likely to
match the physical flow of inventory for most companies
is:
A. FIFO
B. LIFO
C. Weighted‐average
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D. Specific identification - ANSWER-B. LIFO
In accounting for inventory, the assumed cost flow must
match the physical goods flow.
A. True
B. False - ANSWER-B. False
A company has the following inventory transactions:
Jan. 1 Beginning inventory 100 units @ $4 each
Jan. 15 Purchase 100 units @ $5 each
Jan. 31 Purchase 100 units @ $6 each
What would be the cost of goods sold under the FIFO
method if 120 units were sold in January?
A. $ 600
B. $ 500
C. $ 620
D. $ 720 - ANSWER-B. $500
