TEST BANK
Principles of Cost Accounting
Edward Vanderbeck
17th Edition
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, Table of Contents
1. Introduction to Cost Accounting
2. Accounting for Materials
3. Accounting for Labor
4. Accounting for Factory Overhead
5. Process Cost Accounting — General Procedures
6. Process Cost Accounting — Additional Procedures; Accounting for Joint Products and By-
Products
7. The Master Budget and Flexible Budgeting
8. Standard Cost Accounting — Materials, Labor, and Factory Overhead
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9. Cost Accounting for Service Businesses and the Balanced Scorecard
10.Cost Analysis for Management Decision Making
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,CHAPTER 1: INTRODUCTION TO COST ACCOUNTING
1. The business entity that converts purchased raw materials into finished goods by using labor, technology, and facilities
is a:
a. Manufacturer.
b. Merchandiser.
c. Service business.
d. Not-for-profit service agency.
ANSWER: a
RATIONALE: The business entity that converts purchased raw materials into finished goods by using labor,
technology, and facilities is a manufacturer.
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTI PRIN.EDWA.16.1 - Introduction
VES:
ACCREDITING STAN AACSB Analytic
PR
DARDS: ACCT.AICPA.FN.03 - Measurement
BUSPROG.03 - Analytic
IMA-Business Applications
OTHER: Bloom's: Remembering
2. The business entity that purchases finished goods for resale is a:
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a. Manufacturer.
b. Merchandiser.
c. Service business.
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d. Wholesaler.
ANSWER: b
RATIONALE: The business entity that purchases finished goods for resale is a merchandiser.
POINTS: 1
DIFFICULTY: Easy
O
LEARNING OBJECTIVES PRIN.EDWA.16.1 - Introduction
:
ACCREDITING STANDA AACSB Analytic
C
RDS: ACCT.AICPA.FN.03 - Measurement
BUSPROG.03 - Analytic
IMA-Business Applications
OTHER: Bloom's: Remembering
3. The type of merchandiser who purchases goods from the producer and sells them to retailers that sell them to the
consumer is a:
a. Manufacturer.
b. Retailer.
c. Wholesaler.
d. Service business.
ANSWER: c
RATIONALE: A wholesaler purchases goods from the producer and sells them to the retailer.
POINTS: 1
, DIFFICULTY: Easy
PR
O
FD
O
C
Principles of Cost Accounting
Edward Vanderbeck
17th Edition
PR
O
FD
O
C
, Table of Contents
1. Introduction to Cost Accounting
2. Accounting for Materials
3. Accounting for Labor
4. Accounting for Factory Overhead
5. Process Cost Accounting — General Procedures
6. Process Cost Accounting — Additional Procedures; Accounting for Joint Products and By-
Products
7. The Master Budget and Flexible Budgeting
8. Standard Cost Accounting — Materials, Labor, and Factory Overhead
PR
9. Cost Accounting for Service Businesses and the Balanced Scorecard
10.Cost Analysis for Management Decision Making
O
FD
O
C
,CHAPTER 1: INTRODUCTION TO COST ACCOUNTING
1. The business entity that converts purchased raw materials into finished goods by using labor, technology, and facilities
is a:
a. Manufacturer.
b. Merchandiser.
c. Service business.
d. Not-for-profit service agency.
ANSWER: a
RATIONALE: The business entity that converts purchased raw materials into finished goods by using labor,
technology, and facilities is a manufacturer.
POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTI PRIN.EDWA.16.1 - Introduction
VES:
ACCREDITING STAN AACSB Analytic
PR
DARDS: ACCT.AICPA.FN.03 - Measurement
BUSPROG.03 - Analytic
IMA-Business Applications
OTHER: Bloom's: Remembering
2. The business entity that purchases finished goods for resale is a:
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a. Manufacturer.
b. Merchandiser.
c. Service business.
FD
d. Wholesaler.
ANSWER: b
RATIONALE: The business entity that purchases finished goods for resale is a merchandiser.
POINTS: 1
DIFFICULTY: Easy
O
LEARNING OBJECTIVES PRIN.EDWA.16.1 - Introduction
:
ACCREDITING STANDA AACSB Analytic
C
RDS: ACCT.AICPA.FN.03 - Measurement
BUSPROG.03 - Analytic
IMA-Business Applications
OTHER: Bloom's: Remembering
3. The type of merchandiser who purchases goods from the producer and sells them to retailers that sell them to the
consumer is a:
a. Manufacturer.
b. Retailer.
c. Wholesaler.
d. Service business.
ANSWER: c
RATIONALE: A wholesaler purchases goods from the producer and sells them to the retailer.
POINTS: 1
, DIFFICULTY: Easy
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FD
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