Question 1

The high-low method

Accepted Answer

A) is a useful means of predicting the highest cost a company will incur in the operating period. 
B) is a useful means of separating fixed and variable elements from a mixed cost. 
C) is more time-consuming than the scatter diagram method. 
D) is more complex than the use of linear regression analysis. 
A) is a useful means of predicting the highest cost a company will incur in the operating period. 
B) is a useful means of separating fixed and variable elements from a mixed cost. 
C) is more time-consuming than the scatter diagram method. 
D) is more complex than the use of linear regression analysis.

Question 2

Which of the following are considered product costs?

Accepted Answer

A) period costs and administrative expenses 
B) selling and administrative expenses 
C) inventoriable costs and plant assets 
D) direct labour costs and manufacturing overhead 
A) period costs and administrative expenses 
B) selling and administrative expenses 
C) inventoriable costs and plant assets 
D) direct labour costs and manufacturing overhead

Question 3

Use the following information for questions . $\begin{array}{lll}
&\text { \# Machine}& \text { Maintenance }\
\underline{\text { Month }} &\underline{ \text { Hours X }}& \underline{\text { Costs Y}}\
\text { Jan } & 3,000 & \$ 440 \
\text { Feb } & 4,500 & \$ 690 \
\text { Mar } & 8,000 & \$ 510 \
\text { Apr } & 7,000 & \$ 600 \
\text { May } & 6,000 & \$ 550 \
\text { Jun } & 9,000 & \$ 980 \
\text { Jul } & 3,500 & \$ 840 \
\text { Auq } & 5,500 & \$ 600
\end{array}$

-What does the slope represent?

Accepted Answer

A) the rate at which the X variable changes as a result of the Y variable 
B) the rate at which the Y variable changes as a result of the X variable 
C) the rate at which the dependent variable changes as a result of the fixed cost component 
D) the rate at which the independent variable changes as a result of changes in the dependent variable 
A) the rate at which the X variable changes as a result of the Y variable 
B) the rate at which the Y variable changes as a result of the X variable 
C) the rate at which the dependent variable changes as a result of the fixed cost component 
D) the rate at which the independent variable changes as a result of changes in the dependent variable

Question 4

The work in process inventory appears on the balance sheet and the income statement of a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 5

A curvilinear relationship between variable costs and changes in activity levels suggests what?

Accepted Answer

A) A strictly linear relationship between fixed costs and activity levels is implausible. 
B) A strictly curvilinear relationship between changes in activity levels and variable costs is possible only within the relevant range. 
C) Since the relationship between activity levels and variable costs is linear within the relevant range and less linear at lower and higher levels outside the relevant range, the straight-line (linear)relationship takes on a curvature in the real world. 
D) none of the above 
A) A strictly linear relationship between fixed costs and activity levels is implausible. 
B) A strictly curvilinear relationship between changes in activity levels and variable costs is possible only within the relevant range. 
C) Since the relationship between activity levels and variable costs is linear within the relevant range and less linear at lower and higher levels outside the relevant range, the straight-line (linear)relationship takes on a curvature in the real world. 
D) none of the above

Question 6

Use the following information for questions . $\begin{array}{lll}
&\text { \# Machine}& \text { Maintenance }\
\underline{\text { Month }} &\underline{ \text { Hours X }}& \underline{\text { Costs Y}}\
\text { Jan } & 3,000 & \$ 440 \
\text { Feb } & 4,500 & \$ 690 \
\text { Mar } & 8,000 & \$ 510 \
\text { Apr } & 7,000 & \$ 600 \
\text { May } & 6,000 & \$ 550 \
\text { Jun } & 9,000 & \$ 980 \
\text { Jul } & 3,500 & \$ 840 \
\text { Auq } & 5,500 & \$ 600
\end{array}$

-Using the high-low method, what is the slope for this set of data?

Accepted Answer

A) $9 
B) $0.09 
C) $11.11 
D) $540 
A) $9 
B) $0.09 
C) $11.11 
D) $540

Question 7

Mixed costs are

Accepted Answer

A) costs with both indirect and direct elements. 
B) costs with both product and period elements. 
C) costs with both fixed and variable elements. 
D) none of these. 
A) costs with both indirect and direct elements. 
B) costs with both product and period elements. 
C) costs with both fixed and variable elements. 
D) none of these.

Question 8

Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totalling $13,000, and direct materials totalling $16,000.How much is direct labour cost?

Accepted Answer

A) Cannot be determined from the information provided. 
B) $94,000 
C) $29,000 
D) $36,000 
A) Cannot be determined from the information provided. 
B) $94,000 
C) $29,000 
D) $36,000

Question 9

Manufacturing overhead can be categorized as

Accepted Answer

A) a prime cost and a period cost. 
B) a conversion cost and a period cost. 
C) a prime cost and a product cost. 
D) a conversion cost and a product cost. 
A) a prime cost and a period cost. 
B) a conversion cost and a period cost. 
C) a prime cost and a product cost. 
D) a conversion cost and a product cost.

Question 10

Raw materials are equal to direct materials.

Accepted Answer

A) True 
 B)False

Question 11

Ending finished goods, work in process, and raw materials inventory appear on the balance sheet of a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 12

Use the following information for questions . $\begin{array}{lll}
&\text { \# Machine}& \text { Maintenance }\
\underline{\text { Month }} &\underline{ \text { Hours X }}& \underline{\text { Costs Y}}\
\text { Jan } & 200 & \$ 415 \
\text { Feb } & 175 & \$ 385 \
\text { Mar } & 290 & \$ 520 \
\text { Apr } & 300 & \$ 534 \
\text { May } & 185 & \$ 403 \
\text { Jun } & 265 & \$ 490 \
\text { Jul } & 160 & \$ 372 \
\text { Auq } & 320 & \$ 564
\end{array}$ 
-Which of the following choices represents the highest and lowest respective coordinates of activity level and corresponding total overhead costs?

Accepted Answer

A) ($372, 160 labour hours), ($564, 320 labour hours) 
B) ($564, 320 labour hours), ($372, 160 labour hours) 
C) (160 labour hours, $372), (320 labour hours, $564) 
D) (320 labour hours, $564), (160 labour hours, $372) 
A) ($372, 160 labour hours), ($564, 320 labour hours) 
B) ($564, 320 labour hours), ($372, 160 labour hours) 
C) (160 labour hours, $372), (320 labour hours, $564) 
D) (320 labour hours, $564), (160 labour hours, $372)

Question 13

A high-low approach to establishing fixed and variable components of costs is most effective when information available is

Accepted Answer

A) curvilinear. 
B) erratic and highly fluctuating. 
C) outside of the relevant range. 
D) linear. 
A) curvilinear. 
B) erratic and highly fluctuating. 
C) outside of the relevant range. 
D) linear.

Question 14

At May 31, 2016, Smythe Inc.has $4,500 in beginning raw materials, $6,000 of direct labour.If manufacturing overhead was $10,500, total manufacturing costs was $50,500, and total raw material purchases were $36,000, how much is ending amount of raw materials?

Accepted Answer

A) $36,000 
B) $21,000 
C) $40,500 
D) $6,500 
A) $36,000 
B) $21,000 
C) $40,500 
D) $6,500

Question 15

What the high-low method may lack in precision, it makes up for in efficiency and ease of use.

Accepted Answer

A) True 
 B)False

Question 16

Indirect labour is a

Accepted Answer

A) direct, variable, product cost. 
B) direct, variable, period cost. 
C) indirect, variable, product cost. 
D) indirect, fixed or variable, product cost. 
A) direct, variable, product cost. 
B) direct, variable, period cost. 
C) indirect, variable, product cost. 
D) indirect, fixed or variable, product cost.

Question 17

During 2016, "cost of goods manufactured" was less than the amount of "Total manufacturing costs" for the period.Which statement is true?

Accepted Answer

A) Ending work in process inventory is greater than beginning work in process inventory. 
B) Ending work in process is less than beginning work in process inventory. 
C) Ending work in process is equal to the cost of goods manufactured. 
D) Ending work in process is less than beginning finished goods inventory. 
A) Ending work in process inventory is greater than beginning work in process inventory. 
B) Ending work in process is less than beginning work in process inventory. 
C) Ending work in process is equal to the cost of goods manufactured. 
D) Ending work in process is less than beginning finished goods inventory.

Question 18

Mixed costs change in total, but not proportionately with the change in activity level.

Accepted Answer

A) True 
 B)False

Question 19

Both direct material cost and indirect material cost are product costs.

Accepted Answer

A) True 
 B)False

Question 20

Raw materials that CANNOT be conveniently and directly associated with a finished product, but are used in production, are called indirect materials.

Accepted Answer

A) True 
 B)False

The high-low method

Which of the following are considered product costs?

Use the following information for questions . \# Machine Maintenance Jan 3,000 \ 440 Feb 4,500 \ 690 Mar 8,000 \ 510 Apr 7,000 \ 600 May 6,000 \ 550 Jun 9,000 \ 980 Jul 3,500 \ 840 Auq 5,500 \ 600 -What does the slope represent?

The work in process inventory appears on the balance sheet and the income statement of a manufacturing company.

A curvilinear relationship between variable costs and changes in activity levels suggests what?

Use the following information for questions . \# Machine Maintenance Jan 3,000 \ 440 Feb 4,500 \ 690 Mar 8,000 \ 510 Apr 7,000 \ 600 May 6,000 \ 550 Jun 9,000 \ 980 Jul 3,500 \ 840 Auq 5,500 \ 600 -Using the high-low method, what is the slope for this set of data?

Mixed costs are

Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totalling $13,000, and direct materials totalling $16,000.How much is direct labour cost?

Manufacturing overhead can be categorized as

Raw materials are equal to direct materials.

Ending finished goods, work in process, and raw materials inventory appear on the balance sheet of a manufacturing company.

A high-low approach to establishing fixed and variable components of costs is most effective when information available is

At May 31, 2016, Smythe Inc.has $4,500 in beginning raw materials, $6,000 of direct labour.If manufacturing overhead was $10,500, total manufacturing costs was $50,500, and total raw material purchases were $36,000, how much is ending amount of raw materials?

What the high-low method may lack in precision, it makes up for in efficiency and ease of use.

Indirect labour is a

During 2016, "cost of goods manufactured" was less than the amount of "Total manufacturing costs" for the period.Which statement is true?

Mixed costs change in total, but not proportionately with the change in activity level.

Both direct material cost and indirect material cost are product costs.

Raw materials that CANNOT be conveniently and directly associated with a finished product, but are used in production, are called indirect materials.

Managerial Accounting

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Decision-Making: Costvolumeprofit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters

Exam 2: Managerial Cost Concepts and Cost Behaviour Analysis

The high-low method

Which of the following are considered product costs?

Use the following information for questions . \# Machine Maintenance Jan 3,000 \ 440 Feb 4,500 \ 690 Mar 8,000 \ 510 Apr 7,000 \ 600 May 6,000 \ 550 Jun 9,000 \ 980 Jul 3,500 \ 840 Auq 5,500 \ 600 -What does the slope represent?

The work in process inventory appears on the balance sheet and the income statement of a manufacturing company.

A curvilinear relationship between variable costs and changes in activity levels suggests what?

Use the following information for questions . \# Machine Maintenance Jan 3,000 \ 440 Feb 4,500 \ 690 Mar 8,000 \ 510 Apr 7,000 \ 600 May 6,000 \ 550 Jun 9,000 \ 980 Jul 3,500 \ 840 Auq 5,500 \ 600 -Using the high-low method, what is the slope for this set of data?

Mixed costs are

Ranger Company reported total manufacturing costs of $65,000, manufacturing overhead totalling $13,000, and direct materials totalling $16,000.How much is direct labour cost?

Manufacturing overhead can be categorized as

Raw materials are equal to direct materials.

Ending finished goods, work in process, and raw materials inventory appear on the balance sheet of a manufacturing company.

A high-low approach to establishing fixed and variable components of costs is most effective when information available is

At May 31, 2016, Smythe Inc.has $4,500 in beginning raw materials, $6,000 of direct labour.If manufacturing overhead was $10,500, total manufacturing costs was $50,500, and total raw material purchases were $36,000, how much is ending amount of raw materials?

What the high-low method may lack in precision, it makes up for in efficiency and ease of use.

Indirect labour is a

During 2016, "cost of goods manufactured" was less than the amount of "Total manufacturing costs" for the period.Which statement is true?

Mixed costs change in total, but not proportionately with the change in activity level.

Both direct material cost and indirect material cost are product costs.

Raw materials that CANNOT be conveniently and directly associated with a finished product, but are used in production, are called indirect materials.

Managerial Accounting

Job-Order Cost Accounting

Process Cost Accounting

Activity-Based Costing

Decision-Making: Costvolumeprofit

Incremental Analysis

Alternative Inventory Costing Methods: a Decision-Making Perspective

Pricing

Budgetary Planning

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Filters