4. Merchandising Operations

Cost-volume-profit (CVP) analysis helps managers predict how changes in which of the following factors will affect a company's net income?

Which of the following costs would NOT be included as part of manufacturing overhead?

If a company uses the perpetual inventory system and records a sale of inventory with variable costs of $20 per unit, what is the correct journal entry to record the cost of goods sold at the time of sale?

Under both the perpetual and periodic inventory systems, when does the cost of inventory become an expense (Cost of Goods Sold) on the income statement?

Which of the following statements is true regarding the schedule of cost of goods manufactured under a perpetual inventory system compared to a periodic inventory system?

In financial accounting, what does COGS stand for?

In a job order costing system, during production, to what account are the costs of direct materials, direct labor, and applied overhead assigned?

Which of the following statements best describes the purpose of a schedule of cost of goods manufactured in a manufacturing company?

Which inventory system provides a continuous record of inventory and cost of goods sold, updating these accounts after each purchase or sale?

The amount of money paid for raw materials and products sold is called:

Which inventory accounting method continuously updates the cost of goods sold and inventory balances with each purchase and sale transaction?

Under the periodic inventory system, cost of goods sold (COGS) is computed using which of the following equations?

Which of the following costs is NOT recorded as part of the cost of machinery and equipment?

Which of the following inventory systems typically includes a direct materials inventory account?

Flash Company produces lamps. Which of the following is NOT considered a direct cost in the production of lamps?