Solutions for Fundamental Accounting Principles Volume 2, 17th Canadian Edition Larson

CHAPTER 1:INTRODUCTION TOCOSTACCOUNTING
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TestBankForPrinciplesOf CostAccounting,
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17thEditionEdward J. Vanderbeck
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Chapters 1-10,Complete n n n n




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, CHAPTER 1:INTRODUCTION TOCOSTACCOUNTING
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Contents

1. Ch 1: Introduction to Cost Accounting
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2. Ch 2: Accounting for Materials
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3. Ch 3: Accounting for Labor
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4. Ch 4: Accounting for Factory Overhead
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5. Ch 5: Process Cost Accounting-General Procedures
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6. Ch 6: Process Cost Accounting-Additional Procedures; Accounting for Joint Products and By-Products
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7. Ch 7: The Master Budget and Flexible Budgeting
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8. Ch 8: Standard Cost Accounting-Materials, Labor, and Factory Overhead
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9. Ch 9: Cost Accounting for Service Businesses, the Balanced Scorecard, and Quality Costs
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10. Ch 10: Cost Analysis for Management Decision Making
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,CHAPTER 1:INTRODUCTION TOCOSTACCOUNTING n n n n n




The business entitythat converts purchased raw materials intofinished goods byusing labor, technology, andfacilitiesis a:
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a. Manufacturer.
b. Merchandiser.
c. Servicebusiness. n




d. Not-for-profitservice agency. n n




ANSWER: a
RATIONALE: The business entity that converts purchased raw materials into finished goods byusing labor,technology,
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and facilities is a manufacturer.
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POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTI PRIN.EDWA.16.1-Introduction
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VES:
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ACCREDITING STAN AACSB Analytic n n n




DARDS: ACCT.AICPA.FN.03-Measurement n n




BUSPROG.03 - Analytic n n n




IMA-BusinessApplications n




OTHER: Bloom's:Remembering n




2. The business entity that purchases finished goods for resale is a:
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a. Manufacturer.
b. Merchandiser.
c. Servicebusiness. n




d. Wholesaler.
ANSWER: b
RATIONALE: The business entity that purchases finished goods for resale is amerchandiser. n n n n n n n n n n n




POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES PRIN.EDWA.16.1-Introduction
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:
ACCREDITING STANDA AACSB Analytic ACCT.AICPA.FN.03-
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RDS:
n MeasurementBUSPROG.03 - Analytic n n n n




IMA-BusinessApplications n




OTHER: Bloom's:Remembering n




3. The type of merchandiser who purchases goods from the producer and sells them to retailers that sell them to the
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consumer is a:
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a. Manufacturer.
b. Retailer.
c. Wholesaler.
d. Servicebusiness. n




ANSWER: c
RATIONALE: A wholesaler purchases goods from the producer and sells them tothe retailer.
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POINTS: 1
DIFFICULTY: Easy
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, CHAPTER 1:INTRODUCTION TOCOSTACCOUNTING
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LEARNING OBJECTIVES PRIN.EDWA.16.1-Introduction
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:
ACCREDITING STANDA AACSB Analytic ACCT.AICPA.FN.03-
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RDS:
n MeasurementBUSPROG.03 - Analytic n n n n




IMA-BusinessApplications n




OTHER: Bloom's:Remembering n




4. Examplesof servicebusinesses include:
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a. Airlines, accountants,andhairstylists. n n n n




b. Departmentstores, poster shops, andwholesalers. n n n n n




c. Aircraftproducers, home builders,and machine tool makers. n n n n n n n




d. None of these are correct. n n n n




ANSWER: a
RATIONALE: Examples of service businesses includeairlines,architects, andhair stylists. n n n n n n n n n




POINTS: 1
DIFFICULTY: Moderate
LEARNING OBJECTI n PRIN.EDWA.16.1-Introduction n n




VES:
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ACCREDITING STAN AACSB ReflectiveThinking n n n n




DARDS: ACCT.AICPA.FN.03 - Measurement n n




BUSPROG.06 - Reflective Thinking n n n n




IMA-Business Applications n n




OTHER: Bloom's: Understanding n




5. ISO 9000 is a set of international standards for:
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a. determiningthe selling price of a product. n n n n n n




b. cost control. n




c. qualitymanagement. n




d. deliveringproduct, n




ANSWER: c
RATIONALE: ISO 9000is aset of international standards for quality management. n n n n n n n n n n




POINTS: 1
DIFFICULTY: Easy
LEARNING OBJECTIVES:PRIN.EDWA.16.1-Introduction
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ACCREDITING STANDARAACSBAnalytic n n n




DS: ACCT.AICPA.FN.03-Measurement n n




BUSPROG.03 - Analytic n n n




IMA-StrategicPlanning n




OTHER: Bloom's:Remembering n




6. Unit cost informationis important for making all of the following marketingdecisions except:
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a. Determining the selling priceof a product. n n n n n n




b. Biddingon contracts. n n




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