Acounting Exam 1 Questions With
100% Correct Answers
\.Which of the following types of companies has raw materials, work in process and finished
goods inventory? - Answer-✔manufacturers
\.Kohl's Department Store, a clothing and home goods store, is primarily what type of
company? - Answer-✔retailer
\.Advertising expenses would be considered which element of the value chain? - Answer-
✔marketing
\.What is the total cost for the production category of the value chain? - Answer-✔assembly line
salaries+ depreciation on factory equipment+ caps + bottles
\.Which of the following is not an example of an indirect cost incurred in manufacturing
automobiles? - Answer-✔cost of the automobile engines
\.The value chain describes the costs associated with making a product. What box(es) are
expensed immediately when incurred on the income statement as operating expenses/SGA
("period costs")? - Answer-✔all of them except production or purchases
\.A janitor in the factory would be considered? - Answer-✔indirect labor and manufacturing
overhead
\.Rent paid for the plant factory would be considered? - Answer-✔manufacturing overhead
100% Correct Answers
\.Which of the following types of companies has raw materials, work in process and finished
goods inventory? - Answer-✔manufacturers
\.Kohl's Department Store, a clothing and home goods store, is primarily what type of
company? - Answer-✔retailer
\.Advertising expenses would be considered which element of the value chain? - Answer-
✔marketing
\.What is the total cost for the production category of the value chain? - Answer-✔assembly line
salaries+ depreciation on factory equipment+ caps + bottles
\.Which of the following is not an example of an indirect cost incurred in manufacturing
automobiles? - Answer-✔cost of the automobile engines
\.The value chain describes the costs associated with making a product. What box(es) are
expensed immediately when incurred on the income statement as operating expenses/SGA
("period costs")? - Answer-✔all of them except production or purchases
\.A janitor in the factory would be considered? - Answer-✔indirect labor and manufacturing
overhead
\.Rent paid for the plant factory would be considered? - Answer-✔manufacturing overhead
