Jiffy Lube, an automotive maintenance company, is primarily what type of company?

11) Schlabig & Associates, a public accounting firm, is what type of company?
A) Manufacturer
B) Retailer
C) Service
D) Wholesaler
Answer:  C
Diff: 1
LO:  2-1
EOC:  S2-1
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

12) Jiffy Lube, an automotive maintenance company, is primarily what type of company?
A) Manufacturer
B) Retailer
C) Wholesaler
D) Service
Answer:  D
Diff: 1
LO:  2-1
EOC:  S2-1
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


13) Among other products, Nabisco makes Oreo cookies. Which type of company is Nabisco?
A) Service
B) Manufacturer
C) Retailer
D) Wholesaler
Answer:  B
Diff: 1
LO:  2-1
EOC:  S2-2
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
14) Which type of company typically produces its own inventory?
A) Manufacturer
B) Service company
C) Retailer
D) Wholesaler
Answer:  A
Diff: 1
LO:  2-1
EOC:  S2-2
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

15) What type of company resells products it purchases ready-made from suppliers?
A) Merchandiser
B) Retailer
C) Wholesaler
D) All of the above
Answer:  D
Diff: 1
LO:  2-1
EOC:  S2-2
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


16) Before these materials are used to manufacture its cars, Toyota classifies steel, glass, and plastic as
A) raw materials inventory.
B) finished goods inventory.
C) work in process inventory.
D) merchandise inventory.
Answer:  A
Diff: 1
LO:  2-1
EOC:  S2-2
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
17) Before these materials are used to manufacture cabinets, a woodworker classifies lumber, paint, and glue as
A) finished goods inventory.
B) work in process inventory.
C) raw materials inventory.
D) merchandise inventory.
Answer:  C
Diff: 1
LO:  2-1
EOC:  S2-2
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits

18) Macy's (the department store chain) classifies its clothing held for sale as
A) merchandise inventory.
B) raw materials inventory.
C) work in process inventory.
D) finished goods inventory.
Answer:  A
Diff: 1
LO:  2-1
EOC:  S2-2
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits


19) American Eagle Outfitters classifies the denim jeans on the shelves at its retail locations as
A) finished goods inventory.
B) work in process inventory.
C) merchandise inventory.
D) raw materials inventory.
Answer:  C
Diff: 1
LO:  2-1
EOC:  S2-2
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits
20) How would Chevrolet classify its partially completed vehicles?
A) Finished goods
B) Raw materials
C) Work in process
D) Supplies
Answer:  C
Diff: 1
LO:  2-1
EOC:  S2-2
AACSB:  Reflective Thinking
Learning Outcome:  Define and use cost-volume-profit analysis to analyze the effects of changes
in costs and volume on a company's profits