Question 1

Streif Inc., a local retailer, has provided the following data for the month of June:   The cost of goods sold for June was:

Accepted Answer

A)  $128,000 
B)  $181,000 
C)  $122,000 
D)  $134,000 
A)  $128,000 
B)  $181,000 
C)  $122,000 
D)  $134,000

Question 2

Asplund Corporation has provided the following information:
   Required:
a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units?
b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,000 units?

Accepted Answer

The answer of Asplund Corporation has provided the following information:
...

Question 3

Kneeland Corporation has provided the following information:   If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Accepted Answer

A)  $186,000 
B)  $138,000 
C)  $162,000 
D)  $150,000 
A)  $186,000 
B)  $138,000 
C)  $162,000 
D)  $150,000

Question 4

Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:   If 5,000 units are sold, the total variable cost is closest to:

Accepted Answer

A)  $53,000 
B)  $65,000 
C)  $60,500 
D)  $77,000 
A)  $53,000 
B)  $65,000 
C)  $60,500 
D)  $77,000

Question 5

Pedregon Corporation has provided the following information:   If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Accepted Answer

A)  $21,000 
B)  $14,000 
C)  $28,000 
D)  $17,500 
A)  $21,000 
B)  $14,000 
C)  $28,000 
D)  $17,500

Question 6

Lagle Corporation has provided the following information:   For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

Accepted Answer

A)  $12,200 
B)  $7,800 
C)  $4,400 
D)  $8,100 
A)  $12,200 
B)  $7,800 
C)  $4,400 
D)  $8,100

Question 7

The relevant range concept is applicable to mixed costs.

Accepted Answer

A) True 
 B)False

Question 8

Fixed costs expressed on a per unit basis:

Accepted Answer

A)  increase with increases in activity. 
B)  decrease with increases in activity. 
C)  are not affected by activity. 
D)  should be ignored in making decisions since they cannot change. 
A)  increase with increases in activity. 
B)  decrease with increases in activity. 
C)  are not affected by activity. 
D)  should be ignored in making decisions since they cannot change.

Question 9

A fixed cost is not constant per unit of product.

Accepted Answer

A) True 
 B)False

Question 10

Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:   The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:

Accepted Answer

A)  $16.20 
B)  $10.80 
C)  $13.80 
D)  $14.30 
A)  $16.20 
B)  $10.80 
C)  $13.80 
D)  $14.30

Question 11

Menk Corporation has provided the following information:
   Required:
a. If 5,000 units are sold, what is the variable cost per unit sold?
b. If 5,000 units are sold, what is the total amount of variable costs related to the units sold?
c. If 5,000 units are produced, what is the total amount of manufacturing overhead cost incurred?

Accepted Answer

The answer of Menk Corporation has provided the following information:
...

Question 12

Delongis Corporation, a merchandising company, reported the following results for June:   Cost of goods sold is a variable cost in this company.
The gross margin for June is:

Accepted Answer

A)  $242,600 
B)  $148,800 
C)  $124,800 
D)  $102,200 
A)  $242,600 
B)  $148,800 
C)  $124,800 
D)  $102,200

Question 13

The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below:   On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed.
The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

Accepted Answer

A)  Y = $105,000 + $3X 
B)  Y = $105,000 + $5X 
C)  Y = $110,000 + $5X 
D)  Y = $110,000 + $33X 
A)  Y = $105,000 + $3X 
B)  Y = $105,000 + $5X 
C)  Y = $110,000 + $5X 
D)  Y = $110,000 + $33X

Question 14

For an automobile manufacturer, the cost of a driver's side air bag purchased from a supplier and installed in every automobile would best be described as a:

Accepted Answer

A)  fixed cost. 
B)  mixed cost. 
C)  step-variable cost. 
D)  variable cost. 
A)  fixed cost. 
B)  mixed cost. 
C)  step-variable cost. 
D)  variable cost.

Question 15

Schwiesow Corporation has provided the following information:   For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

Accepted Answer

A)  $12,500 
B)  $8,300 
C)  $7,000 
D)  $5,500 
A)  $12,500 
B)  $8,300 
C)  $7,000 
D)  $5,500

Question 16

The cost of napkins put on each person's tray at a fast food restaurant is a variable cost with respect to how many persons are served.

Accepted Answer

A) True 
 B)False

Question 17

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:   If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Accepted Answer

A)  $4,200 
B)  $10,400 
C)  $14,600 
D)  $12,000 
A)  $4,200 
B)  $10,400 
C)  $14,600 
D)  $12,000

Question 18

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable. This cost per unit increase may be due to ________ costs if the level of activity at Jinan is ________.

Accepted Answer

A)  fixed, decreasing 
B)  fixed, increasing 
C)  variable, decreasing 
D)  variable, increasing 
A)  fixed, decreasing 
B)  fixed, increasing 
C)  variable, decreasing 
D)  variable, increasing

Question 19

Kesterson Corporation has provided the following information:   If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Accepted Answer

A)  $55,800 
B)  $63,900 
C)  $80,700 
D)  $64,800 
A)  $55,800 
B)  $63,900 
C)  $80,700 
D)  $64,800

Streif Inc., a local retailer, has provided the following data for the month of June: The cost of goods sold for June was:

Asplund Corporation has provided the following information: Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,000 units?

Kneeland Corporation has provided the following information: If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are sold, the total variable cost is closest to:

Pedregon Corporation has provided the following information: If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Lagle Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

The relevant range concept is applicable to mixed costs.

Fixed costs expressed on a per unit basis:

A fixed cost is not constant per unit of product.

Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:

Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company. The gross margin for June is:

For an automobile manufacturer, the cost of a driver's side air bag purchased from a supplier and installed in every automobile would best be described as a:

Schwiesow Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

The cost of napkins put on each person's tray at a fast food restaurant is a variable cost with respect to how many persons are served.

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable. This cost per unit increase may be due to costs if the level of activity at Jinan is .

Kesterson Corporation has provided the following information: If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Costvolumeprofit Relationships

Joborder Costing: Calculating Unit Product Costs

Variable Costing and Segment Reporting: Tools for Management

Activitybased Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Cost of Quality

Analyzing Mixed Costs

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Pricing Decisions

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters

Exam 1: Managerial Accounting and Cost Concepts

Streif Inc., a local retailer, has provided the following data for the month of June: The cost of goods sold for June was:

Asplund Corporation has provided the following information: Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,000 units?

Kneeland Corporation has provided the following information: If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are sold, the total variable cost is closest to:

Pedregon Corporation has provided the following information: If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Lagle Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

The relevant range concept is applicable to mixed costs.

Fixed costs expressed on a per unit basis:

A fixed cost is not constant per unit of product.

Fiori Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:

Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company. The gross margin for June is:

For an automobile manufacturer, the cost of a driver's side air bag purchased from a supplier and installed in every automobile would best be described as a:

Schwiesow Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

The cost of napkins put on each person's tray at a fast food restaurant is a variable cost with respect to how many persons are served.

Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable. This cost per unit increase may be due to ________ costs if the level of activity at Jinan is ________.

Kesterson Corporation has provided the following information: If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Costvolumeprofit Relationships

Joborder Costing: Calculating Unit Product Costs

Variable Costing and Segment Reporting: Tools for Management

Activitybased Costing: a Tool to Aid Decision Making

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Cost of Quality

Analyzing Mixed Costs

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Time-Driven Activity-Based Costing: a Microsoft Excel-Based Approach

Pricing Decisions

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable. This cost per unit increase may be due to costs if the level of activity at Jinan is .