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: $\begin{array}{ll} \text { Materials cost } & \$ 5,200 \\ \text { Labor cost } & 2,600 \\ \text { Rent } & 1,200 \\ \text { Depreciation } & 1,700 \\ \text { Other fixed costs } & 4,600\\\text { Total } & \$ 15,300 \\ \end{array}$ Materials and labor are the only variable costs. The company has estimated that it can increase sales to 70 generators in August if it changes the selling price of generators to $450 instead of the current $480 per unit. What is expected to occur to the cost per unit given the expected changes?

A) It will decline because fixed costs do not increase with increases in volume. B) It will decline because selling price per unit declines. C) It will increase because more units will be produced. D) It will increase because fixed costs do not increase with increases in volume. A) It will decline because fixed costs do not increase with increases in volume. B) It will decline because selling price per unit declines. C) It will increase because more units will be produced. D) It will increase because fixed costs do not increase with increases in volume.

Hurricane Wings has budgeted the following costs for a month in which 24,000 wings will be cooked and sold. $\begin{array}{lr} \text { Wings, breading, and sauce } & \$ 4,900 \\ \text { Direct labor (Variable) } & 3,500 \\ \text { Rent } & 1,10 0\\ \text { Depreciation } & 900\\ \text { Other fixed costs }&400 \end{array}$ Each wing sells for $0.80 each. What is the budgeted total variable cost?

A) $8,400 B) $9,500 C) $10,400 D) $10,800 A) $8,400 B) $9,500 C) $10,400 D) $10,800

Classic Loungers is in the process of preparing a production cost budget for August. Actual costs in July for 200 chaise lounge chairs were: $\begin{array}{lr} \text { Materials cost } & \$ 6,000 \\ \text { Labor cost } & 8,000 \\ \text { Rent } & 2,000 \\ \text { Depreciation } & 4,000 \\ \text { Other fixed costs } & 5,000 \\ \text { Total } & \$ 25,000 \end{array}$ Each chair is sold for $140 in July. The company plans to lower the selling price to $130 per chair at which management estimates that sales will increase to 230 chairs. Materials and labor are the only variable costs. Under what situation should the company lower the price of its chaise lounge chairs?

A) If total revenue exceeds totals costs under the new pricing B) If incremental revenue exceeds the old revenue C) If incremental profit is a positive number D) If incremental costs decrease A) If total revenue exceeds totals costs under the new pricing B) If incremental revenue exceeds the old revenue C) If incremental profit is a positive number D) If incremental costs decrease

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 is the unit cost per mattress?

(Multiple Choice)

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Question 101

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. The company has estimated that it can increase sales to 70 generators in August if it changes the selling price of generators to $450 instead of the current $480 per unit. What is expected to occur to the cost per unit given the expected changes?

(Multiple Choice)

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Question 102

Which of the following statements regarding incremental analysis is true? Assume that there are no opportunity costs and that the capacity exists to complete any of the alternatives.

(Multiple Choice)

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Question 103

Leah Berry is entering her senior year as an accounting major and has a number of options for her summer break. Her options for the 3-month break follow: (1) Work full time at a local accounting firm making $3,200 per month. (2) Take a summer class which will cost $600 and work half time making $1,600 per month. (3) Take two classes at a cost of $1,200 and not work at all during the summer. Leah's incremental revenue if she chooses option 1 over option 2 would be

(Multiple Choice)

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Question 104

You own a car and are trying to decide whether to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?

(Multiple Choice)

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Question 105

Which of the following would most likely be a Customer Relationship Management System component?

(Multiple Choice)

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Question 106

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 variable costs per unit if 3,500 square feet of carpet are produced and sold in April?

(Multiple Choice)

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Question 107

Supply Chain Management (SCM) systems

(Multiple Choice)

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Question 108

A production cost budget provides details of planned production amounts and the cost of resources needed for production.

(True/False)

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Question 109

A cost which is directly traceable to a product, activity, or department is a(n)

(Multiple Choice)

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Question 110

The treasurer usually reports to the controller.

(True/False)

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Question 111

Managerial accounting

(Multiple Choice)

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Question 112

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. What is the budgeted total variable cost?

(Multiple Choice)

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Question 113

Which of the following is likely to be a noncontrollable cost of a department supervisor?

(Multiple Choice)

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Question 114

Which one of the following is true as it relates to the management function of control?

(Multiple Choice)

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Question 115

Financial accounting must follow generally accepted accounting principles, whereas managerial accounting stresses information that is useful to managers. 15 Managerial accounting may present more detailed information than financial accounting.

(True/False)

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Question 116

Many companies have a chief financial officer (CFO). Which of these positions is most likely to report directly to the CFO?

(Multiple Choice)

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Question 117

Classic Loungers is in the process of preparing a production cost budget for August. Actual costs in July for 200 chaise lounge chairs were: Materials cost \ 6,000 Labor cost 8,000 Rent 2,000 Depreciation 4,000 Other fixed costs 5,000 Total \ 25,000 Each chair is sold for $140 in July. The company plans to lower the selling price to $130 per chair at which management estimates that sales will increase to 230 chairs. Materials and labor are the only variable costs. Under what situation should the company lower the price of its chaise lounge chairs?

(Multiple Choice)

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Question 118

Costs that increase due to a special order are not considered as incremental.

(True/False)

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Question 119

Triatt Resort has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. The fixed costs total $18,700 per month. If Triatt spends an additional $30,000 in June on advertising, it estimates it can expect an occupancy rate of 85%. What would be the financial impact of spending this additional money on advertising over an occupancy level of 70% during June?

(Multiple Choice)

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Question 120

Showing 101 - 120 of 139

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 is the unit cost per mattress?

Which of the following statements regarding incremental analysis is true? Assume that there are no opportunity costs and that the capacity exists to complete any of the alternatives.

You own a car and are trying to decide whether to trade it in and buy a new car. Which of the following costs is an opportunity cost in this situation?

Which of the following would most likely be a Customer Relationship Management System component?

Supply Chain Management (SCM) systems

A production cost budget provides details of planned production amounts and the cost of resources needed for production.

A cost which is directly traceable to a product, activity, or department is a(n)

The treasurer usually reports to the controller.

Managerial accounting

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. What is the budgeted total variable cost?

Which of the following is likely to be a noncontrollable cost of a department supervisor?

Which one of the following is true as it relates to the management function of control?

Financial accounting must follow generally accepted accounting principles, whereas managerial accounting stresses information that is useful to managers. 15 Managerial accounting may present more detailed information than financial accounting.

Many companies have a chief financial officer (CFO). Which of these positions is most likely to report directly to the CFO?

Costs that increase due to a special order are not considered as incremental.

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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