Acct 2 Module 2 Review

Which of the following is not part of the revenue process? 

• Receive and accept order for goods and services.
• Receive goods and services.
• Receive payments for goods and services rendered.
• Provide customer support.

Which of the following is not part of the conversion process? 

• Machine set ups
• Paying for the raw material used in production.
• Storing the raw material used in production.
• Storing finished manufactured goods until sold.

Which of the following is not part of the expenditure process?

• Receiving goods and services.
• Paying suppliers.
• Ordering goods and services.
• Using equipment to manufacture products.

Document sent by the purchasing dept. to order a specific quantity of goods or services is a: 

• Vendor invoice
• Purchasing report
• Purchase order
• Purchase requisition

A sales invoice originates with the:

• Vendor
• Purchasing department
• Sales department
• Accounting department

Goods shipped from seller on Nov 1, arrive at buyer on Nov 6. If FOB destination, the buyer

• took legal title on Nov 10.
• the buyer took legal title on Nov 6.
• The buyer took legal title on Nov 1.
• The buyer took legal title on Nov 7.

If fixed costs increase, how will this affect the contribution margin?

• it will increase
• it will decrease
• there will be no effect.

If fixed costs increase, how will this affect profit?

• it will increase
• it will decrease
• there will be no effect

Which of the following would not be considered manufacturing overhead in a conversion process?

• Insurance on factory.
• Cost to schedule the manufacture of the product.
• Cost to assemble the product.
• Cost of electricity to run the production process.

The four primary influences on selling price are:

• product, variable costs, fixed costs, and mixed costs.
• customers, competition, legal and social issues, and costs.
• competition, variable costs, fixed costs, and mixed costs.
• legal issues, government regulations, costs, and customers.