Share
Explore BrainMass

General Motors, a merchandising company and a well-designed cost accounting system...

1. Which of the following do not represent a type of inventory to
General Motors?
a. Completed automobiles awaiting sale
b. Raw materials and component parts awaiting use in the
manufacturing process.
c. Automobiles that are only partially completed at the end of the
accounting period
d. None of the above
2. The "net purchases" acquired by a merchandising company
correspond most closely to which of the following items applicable to
a manufacturing company?
a. Cost of goods available for sale.
b. Cost of finished goods manufactured.
c. Cost of goods sold.
d. Total manufacturing costs incurred during the production
process.
3. A well-designed cost accounting system would alert management to
each of the following situations except:
a. A shortage of a particular material has caused the Purchasing
Department to stock a more expensive component.
b. Because of a number of rush jobs, many of the employees are
working overtime at time-and-one-half pay rates.
c. Because of the incidence of crime in the area, the cost of security
for the manufacturing plant has doubled in the past few months.
d. The state in which the corporation is located has increased the
corporate income tax rates from 8% to 12%.
4. Manufacturing overhead is considered an indirect cost, since
overhead costs generally cannot be traced conveniently and directly
to specific units of product.
a. True
b. False

Solution Preview

. Which of the following do not represent a type of inventory to
General Motors?
d. None of the above

Completed automobiles awaiting sale - This is finished goods inventory
Raw materials and component parts awaiting use in the manufacturing process ...

Solution Summary

You will find the answer to these puzzling questions inside.

$2.19