Question 1

Under the absorption costing method,a company can increase profits simply by increasing the number of units produced.

Accepted Answer

A) True 
 B)False

Question 2

Bryans Corporation has provided the following data for its two most recent years of operation:
    
-The net operating income (loss)under variable costing in Year 1 is closest to:

Accepted Answer

A)  $174,000 
B)  $37,000 
C)  $150,000 
D)  $16,000 
A)  $174,000 
B)  $37,000 
C)  $150,000 
D)  $16,000

Question 3

Lean production should result in reduced inventories.If lean production is successfully implemented,the difference in net operating income computed under the absorption and variable costing methods should be reduced.

Accepted Answer

A) True 
 B)False

Question 4

Muckleroy Corporation has two divisions: Division K and Division L.Data from the most recent month appear below:
  Management has allocated common fixed expenses to the Divisions based on their sales.The break-even in sales dollars for Division K is closest to:

Accepted Answer

A)  $244,103 
B)  $206,154 
C)  $174,359 
D)  $470,945 
A)  $244,103 
B)  $206,154 
C)  $174,359 
D)  $470,945

Question 5

Zable Corporation has two divisions:
 Town Division and Country Division.The following report is for the most recent operating period:
   The company's common fixed expenses total $68,320.
Required:
a.What is the Town Division's break-even in sales dollars?
b.What is the Country Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?

Accepted Answer

@#IMG-DLM& a.Town Division break-even:
Segment CM

Question 6

Moskowitz Corporation has provided the following data for its two most recent years of operation:
    
-The unit product cost under absorption costing in Year 2 is closest to:

Accepted Answer

A)  $77.00 
B)  $48.00 
C)  $23.00 
D)  $71.00 
A)  $77.00 
B)  $48.00 
C)  $23.00 
D)  $71.00

Question 7

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period:
   The common fixed expenses have been allocated to the divisions on the basis of sales.
-The Southern Division's break-even sales is closest to:

Accepted Answer

A)  $192,661 
B)  $265,119 
C)  $386,408 
D)  $130,508 
A)  $192,661 
B)  $265,119 
C)  $386,408 
D)  $130,508

Question 8

Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:

Accepted Answer

A)  units sold exceed units produced. 
B)  units sold are less than units produced. 
C)  units sold equal units produced. 
D)  the average fixed cost per unit is zero. 
A)  units sold exceed units produced. 
B)  units sold are less than units produced. 
C)  units sold equal units produced. 
D)  the average fixed cost per unit is zero.

Question 9

Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period:
   The common fixed expenses have been allocated to the divisions on the basis of sales.
-What is the company's overall net operating income if it operates at the break-even points for its two divisions?

Accepted Answer

A)  $34,100 
B)  $0 
C)  $(69,020) 
D)  $(260,020) 
A)  $34,100 
B)  $0 
C)  $(69,020) 
D)  $(260,020)

Question 10

Moskowitz Corporation has provided the following data for its two most recent years of operation:
    
-The unit product cost under variable costing in Year 1 is closest to:

Accepted Answer

A)  $63.00 
B)  $69.00 
C)  $23.00 
D)  $29.00 
A)  $63.00 
B)  $69.00 
C)  $23.00 
D)  $29.00

Question 11

Fernstrom Corporation has two divisions: East and West.Data from the most recent month appear below:
  The company's common fixed expenses total $52,140.If the company operates at exactly the break-even sales of the East Division and West Division,what would be the company's overall net operating income?

Accepted Answer

A)  $0 
B)  ($235,140) 
C)  ($52,140) 
D)  $30,540 
A)  $0 
B)  ($235,140) 
C)  ($52,140) 
D)  $30,540

Under the absorption costing method,a company can increase profits simply by increasing the number of units produced.

Bryans Corporation has provided the following data for its two most recent years of operation: -The net operating income (loss)under variable costing in Year 1 is closest to:

Lean production should result in reduced inventories.If lean production is successfully implemented,the difference in net operating income computed under the absorption and variable costing methods should be reduced.

Muckleroy Corporation has two divisions: Division K and Division L.Data from the most recent month appear below: Management has allocated common fixed expenses to the Divisions based on their sales.The break-even in sales dollars for Division K is closest to:

Moskowitz Corporation has provided the following data for its two most recent years of operation: -The unit product cost under absorption costing in Year 2 is closest to:

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. -The Southern Division's break-even sales is closest to:

Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:

Moskowitz Corporation has provided the following data for its two most recent years of operation: -The unit product cost under variable costing in Year 1 is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

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

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

Filters

Exam 6: Variable Costing and Segment Reporting: Tools for Management

Under the absorption costing method,a company can increase profits simply by increasing the number of units produced.

Bryans Corporation has provided the following data for its two most recent years of operation: -The net operating income (loss)under variable costing in Year 1 is closest to:

Lean production should result in reduced inventories.If lean production is successfully implemented,the difference in net operating income computed under the absorption and variable costing methods should be reduced.

Muckleroy Corporation has two divisions: Division K and Division L.Data from the most recent month appear below: Management has allocated common fixed expenses to the Divisions based on their sales.The break-even in sales dollars for Division K is closest to:

Moskowitz Corporation has provided the following data for its two most recent years of operation: -The unit product cost under absorption costing in Year 2 is closest to:

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. -The Southern Division's break-even sales is closest to:

Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:

Moskowitz Corporation has provided the following data for its two most recent years of operation: -The unit product cost under variable costing in Year 1 is closest to:

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Cost-Volume-Profit Relationships

Super-Variable Costing

Master Budgeting

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Cost of Quality

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Job-Order Costing: a Microsoft Excel-Based Approach

Fifo Method

Service Department Allocations

Analyzing Mixed Costs

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

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Standard Cost Systems: a Financial Reporting Perspective Using Microsoft Excel

Transfer Pricing

Service Department Charges

Pricing Decisions

The Concept of Present Value

Income Taxes and the Present Value Method

the Direct Method of Determining the Net Cash Provided by Operating Activities

Filters