fö1009: Chapter 1&2

Grocery stores like ICA or COOP can be categorised as...

• Service Company

• Manufacturer

• Merchandiser (Retailer)

• Merchandiser (Wholesaler)

The value chain includes all activities from the initial product idea to the sale of final goods to the customer.

• True

• False

Which of the following costs is a product cost for a merchandiser?

• Cost of merchandise purchased for resale

• Salary of the purchase manager

• Renting costs of the storage

• Costs for marketing campaigns

Service companies have only period costs (=operating expenses)

• True

• False

Which of the following product costs occur for a manufacturer? (Select all that are correct)

• Direct Labor

• Direct Material

• Manufacturing Overhead

• Direct Marketing

Which three key figures can be found in an income statement of a service company?

• Service Revenues

• Operating Expenses

• Inventory

• Operating Income

Which of the following statement about Balance Sheets is incorrect?

• Assets are displayed on the left side and liabilities on the right hand side of a balance sheet

• Balance sheets report a company's assets & liabilities at a certain point in time (usually end of year)

• Balance sheets show the income of operations

• Inventory is listed as an asset in the balance sheet

Income statement report the financial results of the organization for a period of time

• True

• False