Question 1

A cost incurred in the past that is not relevant to any current decision is classified as a(n):

Accepted Answer

A)  period cost. 
B)  opportunity cost. 
C)  sunk cost. 
D)  differential cost. 
A)  period cost. 
B)  opportunity cost. 
C)  sunk cost. 
D)  differential cost.

Question 2

Which of the following statements is correct in describing manufacturing overhead?

Accepted Answer

A)  Manufacturing overhead when combined with direct materials cost forms conversion cost. 
B)  Manufacturing overhead consists of all manufacturing cost except for prime cost. 
C)  Manufacturing overhead is a period cost. 
D)  Manufacturing overhead when combined with direct labor cost forms prime cost. 
A)  Manufacturing overhead when combined with direct materials cost forms conversion cost. 
B)  Manufacturing overhead consists of all manufacturing cost except for prime cost. 
C)  Manufacturing overhead is a period cost. 
D)  Manufacturing overhead when combined with direct labor cost forms prime cost.

Question 3

Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows:   If 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Accepted Answer

A)  $79,600 
B)  $93,600 
C)  $87,600 
D)  $172,800 
A)  $79,600 
B)  $93,600 
C)  $87,600 
D)  $172,800

Question 4

Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below:   All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed). Assume that the relevant range includes all of the activity levels mentioned in this problem.Which of the selling and administrative expenses of the company is variable?

Accepted Answer

A)  Rent 
B)  Sales Commissions 
C)  Maintenance Expense 
D)  Clerical Expense 
A)  Rent 
B)  Sales Commissions 
C)  Maintenance Expense 
D)  Clerical Expense

Question 5

An example of a committed fixed cost is:

Accepted Answer

A)  management training seminars. 
B)  a long-term equipment lease. 
C)  research and development. 
D)  advertising. 
A)  management training seminars. 
B)  a long-term equipment lease. 
C)  research and development. 
D)  advertising.

Question 6

A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory?

Accepted Answer

A)  The cost of the glue in a chair. 
B)  The amount paid to the individual who stains a chair. 
C)  The workman's compensation insurance of the supervisor who oversees production. 
D)  The factory utilities of the department in which production takes place. 
A)  The cost of the glue in a chair. 
B)  The amount paid to the individual who stains a chair. 
C)  The workman's compensation insurance of the supervisor who oversees production. 
D)  The factory utilities of the department in which production takes place.

Question 8

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:   What is the total of the product costs above?

Accepted Answer

A)  $0 
B)  $81,000 
C)  $143,000 
D)  $161,000 
A)  $0 
B)  $81,000 
C)  $143,000 
D)  $161,000

Question 9

Varela 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:   For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

Accepted Answer

A)  $43,400 
B)  $55,400 
C)  $59,400 
D)  $12,000 
A)  $43,400 
B)  $55,400 
C)  $59,400 
D)  $12,000

Question 10

The following cost data pertain to the operations of Quinonez Department Stores, Incorporated, for the month of September.   The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?

Accepted Answer

A)  $150,900 
B)  $42,700 
C)  $43,680 
D)  $81,200 
A)  $150,900 
B)  $42,700 
C)  $43,680 
D)  $81,200

Question 11

Norred Corporation has provided the following information:   If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Accepted Answer

A)  $120,800 
B)  $134,300 
C)  $12,800 
D)  $121,500 
A)  $120,800 
B)  $134,300 
C)  $12,800 
D)  $121,500

Question 12

The following cost data pertain to the operations of Ladwig Department Stores, Incorporated, for the month of December.   The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood Store. The central warehouse serves all of the company's stores.What is the total amount of the costs listed above that are NOT direct costs of the Brentwood Store?

Accepted Answer

A)  $74,000 
B)  $32,000 
C)  $157,000 
D)  $86,000 
A)  $74,000 
B)  $32,000 
C)  $157,000 
D)  $86,000

Question 13

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:

Accepted Answer

A)  direct materials. 
B)  a period cost. 
C)  administrative expense. 
D)  manufacturing overhead. 
A)  direct materials. 
B)  a period cost. 
C)  administrative expense. 
D)  manufacturing overhead.

Question 14

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 15

The following costs were incurred in May:   Prime costs during the month totaled:

Accepted Answer

A)  $93,600 
B)  $143,800 
C)  $70,200 
D)  $49,300 
A)  $93,600 
B)  $143,800 
C)  $70,200 
D)  $49,300

Question 16

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

Accepted Answer

A)  $46,200 
B)  $38,200 
C)  $8,000 
D)  $50,200 
A)  $46,200 
B)  $38,200 
C)  $8,000 
D)  $50,200

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

Traditional format income statements are widely used for preparing external financial statements.

Accepted Answer

A) True 
 B)False

Question 19

Ouelette 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:   If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Accepted Answer

A)  $15,000 
B)  $22,800 
C)  $7,800 
D)  $25,800 
A)  $15,000 
B)  $22,800 
C)  $7,800 
D)  $25,800

Question 20

A partial listing of costs incurred during March at Febbo Corporation appears below:   The total of the period costs listed above for March is:

Accepted Answer

A)  $68,000 
B)  $293,000 
C)  $291,000 
D)  $223,000 
A)  $68,000 
B)  $293,000 
C)  $291,000 
D)  $223,000

A cost incurred in the past that is not relevant to any current decision is classified as a(n):

Which of the following statements is correct in describing manufacturing overhead?

Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: If 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

An example of a committed fixed cost is:

A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory?

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the product costs above?

Varela 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: For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

Norred Corporation has provided the following information: If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:

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.

The following costs were incurred in May: Prime costs during the month totaled:

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

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:

Traditional format income statements are widely used for preparing external financial statements.

Ouelette 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: If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

A partial listing of costs incurred during March at Febbo Corporation appears below: The total of the period costs listed above for March is:

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Strategic Performance Measurement

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 1: Managerial Accounting and Cost Concepts

A cost incurred in the past that is not relevant to any current decision is classified as a(n):

Which of the following statements is correct in describing manufacturing overhead?

Mccaskell Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: If 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

An example of a committed fixed cost is:

A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory?

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the product costs above?

Varela 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: For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

Norred Corporation has provided the following information: If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:

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.

The following costs were incurred in May: Prime costs during the month totaled:

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

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:

Traditional format income statements are widely used for preparing external financial statements.

Ouelette 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: If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

A partial listing of costs incurred during March at Febbo Corporation appears below: The total of the period costs listed above for March is:

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Responsibility Accounting Systems

Strategic Performance Measurement

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Filters