Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold. $\begin{array}{lr} \text { Wings, breading, and sauce } & \$ 4,900 \\ \text { Direct labor (Variable) } & 3,500 \\ \text { Rent } & 1,100 \\ \text { Depreciation } & 900\\ \text { Other fixed costs }&400 \end{array}$ Each wing sells for $0.80 each. How much would Hurricane Wing's profit increase if 100 more wings were sold?

A) $80.00 B) $35.00 C) $45.00 D) None of these answer choices are correct. A) $80.00 B) $35.00 C) $45.00 D) None of these answer choices are correct.

Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were: \[\begin{array} { l r } \text { Materials cost } & \$ 5,200 \\ \text { Labor cost } & 2,600 \\ \text { Rent } & 1,200 \\ \text { Depreciation } & 1,700 \\ \text { Other fixed costs } & { 4,600 }\\ \text { Total }& { \$ 15,300 } \end{array}\] Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, how much is the expected total cost on the August budget?

A) $17,850 B) $16,600 C) $9,100 D) $15,300 A) $17,850 B) $16,600 C) $9,100 D) $15,300

Exam 1: Managerial Accounting in the Information Age

Sleep Time produces mattresses. Each mattress has a variable cost of $260, fixed costs of $56,000 per month, and a unit selling price of $500. If the company produces and sells 400 mattresses in February, how much profit will the company expect for March assuming that number of mattresses sold and selling price per mattress remains the same as that of February month?

(Multiple Choice)

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Question 61

In most organizations, the controller is the top managerial accountant.

(True/False)

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Question 62

Management by exception requires managers to investigate every difference between actual and budgeted costs that causes profit to be less than budgeted.

(True/False)

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Question 63

Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold. Wings, breading, and sauce \ 4,900 Direct labor (Variable) 3,500 Rent 1,100 Depreciation 900 Other fixed costs 400 Each wing sells for $0.80 each. How much would Hurricane Wing's profit increase if 100 more wings were sold?

(Multiple Choice)

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Question 64

The Institute of Management Accountants (IMA)

(Multiple Choice)

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Question 65

The fundamental difference between managerial and financial accounting is that

(Multiple Choice)

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Question 66

Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were: Materials cost \ 5,200 Labor cost 2,600 Rent 1,200 Depreciation 1,700 Other fixed costs 4,600 Total \ 15,300 Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, how much is the expected total cost on the August budget?

(Multiple Choice)

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Question 67

In a period when anticipated production is 5,000 units, budgeted variable costs are $75,000 and budgeted fixed costs are $24,000. If 5,600 units are actually produced, what is the expected total cost?

(Multiple Choice)

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Question 68

A sunk cost is a cost

(Multiple Choice)

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Question 69

A thorough understanding of managerial accounting is essential to be an effective manager.

(True/False)

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Question 70

Budgets show comparisons of current period performance to the planned performance.

(True/False)

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Question 71

Decisions to reward or punish managers are part of the planning and control process.

(True/False)

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Question 72

For which one of the following is a company's treasurer typically held responsible?

(Multiple Choice)

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Question 73

Indirect costs are directly traceable to a product, activity, or department.

(True/False)

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Question 74

Flash Eyes sells mascara. In June, it produced and sold 10,000 tubes of mascara. Total variable costs were $21,000 and fixed costs totaled $24,000. Which of the following statements is correct if, Flash Eyes produced and sold 9,000 units in July?

(Multiple Choice)

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Question 75

Harrison Carpets incurred the following costs for March when 3,000 square feet of carpet were produced and sold: .$18,500 for nylon thread used on carpet . $5,000 for scotch guard for carpet . $7,200 for jute backing to reinforce the carpet . $6,800 for glue to be used in the manufacturing process . $13,000 for insurance (half for administrative activities, half for production activities) . $9,000 for production employees' wages . $6,500 for rent and utilities in the factory How much are total fixed costs for April if 3,500 square feet of carpet are produced and sold?

(Multiple Choice)

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Question 76

A good single measure of performance for a sales force would be the ratio of sales to new customers to total sales.

(True/False)

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Question 77

Which of the following is not a reasonable measure of a plant manager's performance?

(Multiple Choice)

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Question 78

Which of the following is not usually a responsibility of the controller?

(Multiple Choice)

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Question 79

Fixed cost per unit remains the same even though there is a change in the number of units produced.

(True/False)

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Question 80

Showing 61 - 80 of 139

In most organizations, the controller is the top managerial accountant.

Management by exception requires managers to investigate every difference between actual and budgeted costs that causes profit to be less than budgeted.

The Institute of Management Accountants (IMA)

The fundamental difference between managerial and financial accounting is that

In a period when anticipated production is 5,000 units, budgeted variable costs are $75,000 and budgeted fixed costs are $24,000. If 5,600 units are actually produced, what is the expected total cost?

A sunk cost is a cost

A thorough understanding of managerial accounting is essential to be an effective manager.

Budgets show comparisons of current period performance to the planned performance.

Decisions to reward or punish managers are part of the planning and control process.

For which one of the following is a company's treasurer typically held responsible?

Indirect costs are directly traceable to a product, activity, or department.

Flash Eyes sells mascara. In June, it produced and sold 10,000 tubes of mascara. Total variable costs were $21,000 and fixed costs totaled $24,000. Which of the following statements is correct if, Flash Eyes produced and sold 9,000 units in July?

A good single measure of performance for a sales force would be the ratio of sales to new customers to total sales.

Which of the following is not a reasonable measure of a plant manager's performance?

Which of the following is not usually a responsibility of the controller?

Fixed cost per unit remains the same even though there is a change in the number of units produced.

Job-Order Costing for Manufacturing and Service Companies

Process Costing

Cost-Volume-Profit Analysis

Variable Costing

Cost Allocation and Activity-Based Costing

The Use of Cost Information in Management Decision Making

Pricing Decisions

Capital Budgeting Decisions

Budgetary Planning and Control

Standard Costs and Variance Analysis

Decentralization and Performance Evaluation

Statement of Cash Flows

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