The Managerial Accountant at the Export Shoppe Attended a Meeting

question 44

Multiple Choice

The managerial accountant at the Export Shoppe attended a meeting with the facilities manager to discuss the internal and external costs during the quarter. The facilities manager provided the managerial accountant with the following cost worksheet that highlights the internal and external costs during the period: Export Shoppe
Cost Worksheet
Year Ending December 31, 2013
The managerial accountant reported that the total environmental costs are 20% of all costs during the year. Calculate the total environmental costs at the Export Shoppe.

• A)$4400
• B)$5500
• C)$6200
• D)$7460

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Definitions:

Invoice

A document issued by a seller to a buyer, indicating the products, quantities, and agreed prices for products or services the seller has provided the buyer.

Discount

The reduction from the full amount or value of something, often used as an incentive in sales.

Merchandise Inventory

Merchandise inventory is the total cost of all goods held by a company for the purpose of resale during a given period.

Schedule of Accounts Payable

A detailed listing of all the amounts a company owes to its suppliers or vendors, but has not yet paid.