Homework answers / question archive / Question 1 2 / 2 pts Which of the following is the primary source of revenue for a merchandising business?   the production of products from raw materials    the provision of intangible goods and services    the sale of raw materials to manufacturing firms    the purchase and resale of finished products     Question 2 0 / 2 pts Which of the following is the primary source of revenue for a manufacturing business?    the purchase and resale of finished products    the provision of intangible goods and services    both the provision of services and the sale of finished goods    the production of products from raw materials     Question 3 0 / 2 pts Which of the following represents the components of the income statement for a service business?    Sales Revenue – Cost of Goods Sold = Gross Profit    Service Revenue – Cost of Goods Purchased = Gross Profit    Sales Revenue – Cost of Goods Manufactured = Gross Profit    Service Revenue – Operating Expenses = Operating Income     Question 4 0 / 2 pts Which of the following represents the components of the income statement for a manufacturing business?    Service Revenue – Operating Expenses = Gross Profit    Service Revenue – Cost of Goods Manufactured = Gross Profit    Sales Revenue – Cost of Goods Manufactured = Gross Profit    Sales Revenue – Cost of Goods Sold = Gross Profit     Question 5 0 / 2 pts Which of the following is not considered a product cost?    direct materials    indirect materials    direct labor    selling expense     Question 6 2 / 2 pts Fixed costs are expenses that ________

Question 1 2 / 2 pts Which of the following is the primary source of revenue for a merchandising business?   the production of products from raw materials    the provision of intangible goods and services    the sale of raw materials to manufacturing firms    the purchase and resale of finished products     Question 2 0 / 2 pts Which of the following is the primary source of revenue for a manufacturing business?    the purchase and resale of finished products    the provision of intangible goods and services    both the provision of services and the sale of finished goods    the production of products from raw materials     Question 3 0 / 2 pts Which of the following represents the components of the income statement for a service business?    Sales Revenue – Cost of Goods Sold = Gross Profit    Service Revenue – Cost of Goods Purchased = Gross Profit    Sales Revenue – Cost of Goods Manufactured = Gross Profit    Service Revenue – Operating Expenses = Operating Income     Question 4 0 / 2 pts Which of the following represents the components of the income statement for a manufacturing business?    Service Revenue – Operating Expenses = Gross Profit    Service Revenue – Cost of Goods Manufactured = Gross Profit    Sales Revenue – Cost of Goods Manufactured = Gross Profit    Sales Revenue – Cost of Goods Sold = Gross Profit     Question 5 0 / 2 pts Which of the following is not considered a product cost?    direct materials    indirect materials    direct labor    selling expense     Question 6 2 / 2 pts Fixed costs are expenses that ________

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Question 1

2 / 2 pts

Which of the following is the primary source of revenue for a merchandising business?

 

the production of products from raw materials

  

the provision of intangible goods and services

  

the sale of raw materials to manufacturing firms

  

the purchase and resale of finished products

 

 

Question 2

0 / 2 pts

Which of the following is the primary source of revenue for a manufacturing business?

  

the purchase and resale of finished products

  

the provision of intangible goods and services

  

both the provision of services and the sale of finished goods

  

the production of products from raw materials

 

 

Question 3

0 / 2 pts

Which of the following represents the components of the income statement for a service business?

  

Sales Revenue – Cost of Goods Sold = Gross Profit

  

Service Revenue – Cost of Goods Purchased = Gross Profit

  

Sales Revenue – Cost of Goods Manufactured = Gross Profit

  

Service Revenue – Operating Expenses = Operating Income

 

 

Question 4

0 / 2 pts

Which of the following represents the components of the income statement for a manufacturing business?

  

Service Revenue – Operating Expenses = Gross Profit

  

Service Revenue – Cost of Goods Manufactured = Gross Profit

  

Sales Revenue – Cost of Goods Manufactured = Gross Profit

  

Sales Revenue – Cost of Goods Sold = Gross Profit

 

 

Question 5

0 / 2 pts

Which of the following is not considered a product cost?

  

direct materials

  

indirect materials

  

direct labor

  

selling expense

 

 

Question 6

2 / 2 pts

Fixed costs are expenses that ________.

  

increase on a per-unit basis as activity increases

  

remain constant on a per-unit basis

  

remain constant as activity changes

 

vary in response to changes in activity level

 

 

Question 7

0 / 2 pts

Variable costs are expenses that ________.

  

remain constant on a per-unit basis but change in total based on activity level

  

remain constant on a per-unit basis and remain constant in total regardless of activity level

  

remain constant in total regardless of activity level within a relevant range

  

decrease on a per-unit basis as activity level increases

 

 

Question 8

2 / 2 pts

Which of the following are prime costs?

  

direct labor, indirect materials, and indirect labor

  

indirect materials, indirect labor, and direct labor

  

direct labor and direct materials

  

direct labor and indirect labor

 

 

Question 9

0 / 2 pts

The high-low method and least-squares regression are used by managers to ________.

  

minimize corporate tax liability

 

estimate costs

  

maximize output

  

decide whether to make or buy a component part

 

 

Question 10

0 / 2 pts

In the cost equation Y = a + bx, Y represents which of the following?

  

variable costs

   

total costs

   

fixed costs

 

units of production