Question 1

All other things the same,if a division's traceable fixed expenses decrease then the division's segment margin will decrease.

Accepted Answer

A) True 
 B)False

Question 2

Caruso Inc., which produces a single product, has provided the following data for its most recent month of operations:
   There were no beginning or ending inventories.
-What is the total period cost for the month under the absorption costing?

Accepted Answer

A)  $93,100 
B)  $133,100 
C)  $40,000 
D)  $73,500 
A)  $93,100 
B)  $133,100 
C)  $40,000 
D)  $73,500

Question 3

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
  What is the variable costing unit product cost for the month?

Accepted Answer

A)  $59 per unit 
B)  $83 per unit 
C)  $87 per unit 
D)  $55 per unit 
A)  $59 per unit 
B)  $83 per unit 
C)  $87 per unit 
D)  $55 per unit

Question 4

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:
  The total gross margin for the month under absorption costing is:

Accepted Answer

A)  $72,500 
B)  $95,100 
C)  $20,000 
D)  $57,500 
A)  $72,500 
B)  $95,100 
C)  $20,000 
D)  $57,500

Question 5

Moskowitz Corporation has provided the following data for its two most recent years of operation:
    
-Which of the following statements is true for Year 2?

Accepted Answer

A)  The amount of fixed manufacturing overhead released from inventories is $686,000 
B)  The amount of fixed manufacturing overhead released from inventories is $24,000 
C)  The amount of fixed manufacturing overhead deferred in inventories is $686,000 
D)  The amount of fixed manufacturing overhead deferred in inventories is $24,000 
A)  The amount of fixed manufacturing overhead released from inventories is $686,000 
B)  The amount of fixed manufacturing overhead released from inventories is $24,000 
C)  The amount of fixed manufacturing overhead deferred in inventories is $686,000 
D)  The amount of fixed manufacturing overhead deferred in inventories is $24,000

Question 6

Lenart 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)  $29.00 
B)  $30.00 
C)  $23.00 
D)  $36.00 
A)  $29.00 
B)  $30.00 
C)  $23.00 
D)  $36.00

Question 7

Mandato 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)  $144,000 
B)  $2,000 
C)  $26,000 
D)  $174,000 
A)  $144,000 
B)  $2,000 
C)  $26,000 
D)  $174,000

Question 8

Variable costing is more compatible with cost-volume-profit analysis than is absorption costing.

Accepted Answer

A) True 
 B)False

Question 9

Elbrege Corporation manufactures a single product. The company has supplied the following data:
   There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold.
-Under absorption costing,the unit product cost would be:

Accepted Answer

A)  $7 per unit 
B)  $16 per unit 
C)  $11 per unit 
D)  $10 per unit 
A)  $7 per unit 
B)  $16 per unit 
C)  $11 per unit 
D)  $10 per unit

Question 10

Smidt Corporation has provided the following data for its two most recent years of operation:
    
-The net operating income (loss)under absorption costing in Year 2 is closest to:

Accepted Answer

A)  $81,000 
B)  $13,000 
C)  $184,000 
D)  $142,000 
A)  $81,000 
B)  $13,000 
C)  $184,000 
D)  $142,000

Question 11

Mullee Corporation produces a single product and has the following cost structure:
  The absorption costing unit product cost is:

Accepted Answer

A)  $149 per unit 
B)  $65 per unit 
C)  $63 per unit 
D)  $128 per unit 
A)  $149 per unit 
B)  $65 per unit 
C)  $63 per unit 
D)  $128 per unit

Question 12

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.
-The Eastern Division's break-even sales is closest to:

Accepted Answer

A)  $135,897 
B)  $224,385 
C)  $358,929 
D)  $183,410 
A)  $135,897 
B)  $224,385 
C)  $358,929 
D)  $183,410

Question 13

Gardella Corporation has two divisions: Domestic Division and Foreign 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 Domestic Division's break-even sales is closest to:

Accepted Answer

A)  $309,474 
B)  $157,895 
C)  $224,211 
D)  $470,663 
A)  $309,474 
B)  $157,895 
C)  $224,211 
D)  $470,663

Question 14

Allocating common fixed costs to segments on segmented income statements increases the usefulness of such statements.

Accepted Answer

A) True 
 B)False

Question 15

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

Accepted Answer

A)  $19.00 
B)  $14.00 
C)  $33.00 
D)  $38.00 
A)  $19.00 
B)  $14.00 
C)  $33.00 
D)  $38.00

Question 16

Neef 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)  $21.00 
B)  $57.00 
C)  $62.00 
D)  $26.00 
A)  $21.00 
B)  $57.00 
C)  $62.00 
D)  $26.00

Question 17

Last year,Tinklenberg Corporation's variable costing net operating income was $52,400 and its inventory decreased by 1,400 units.Fixed manufacturing overhead cost was $8 per unit for both units in beginning and in ending inventory.What was the absorption costing net operating income last year?

Accepted Answer

A)  $41,200 
B)  $11,200 
C)  $63,600 
D)  $52,400 
A)  $41,200 
B)  $11,200 
C)  $63,600 
D)  $52,400

Question 18

Smidt 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)  $420,000 
B)  $480,000 
C)  $139,000 
D)  $159,000 
A)  $420,000 
B)  $480,000 
C)  $139,000 
D)  $159,000

Question 19

Azuki Corporation operates in two sales territories, Urban and Rural. Data concerning last year's operations appear below:
   Azuki's common fixed expenses were $25,000 last year.
-If Urban sales were 10% higher last year,by approximately how much would Azuki's net operating income have increased? (Assume no change in selling prices,unit variable expenses,or total fixed expenses.)

Accepted Answer

A)  $4,400 
B)  $6,400 
C)  $11,200 
D)  $32,000 
A)  $4,400 
B)  $6,400 
C)  $11,200 
D)  $32,000

Question 20

Norenberg Corporation manufactures a single product. The following data pertain to the company's operations over the last two years:
  
-What was the absorption costing net operating income this year?

Accepted Answer

A)  $80,000 
B)  $100,500 
C)  $108,000 
D)  $112,200 
A)  $80,000 
B)  $100,500 
C)  $108,000 
D)  $112,200

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

All other things the same,if a division's traceable fixed expenses decrease then the division's segment margin will decrease.

Caruso Inc., which produces a single product, has provided the following data for its most recent month of operations: There were no beginning or ending inventories. -What is the total period cost for the month under the absorption costing?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the variable costing unit product cost for the month?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: The total gross margin for the month under absorption costing is:

Moskowitz Corporation has provided the following data for its two most recent years of operation: -Which of the following statements is true for Year 2?

Lenart 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:

Mandato 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:

Variable costing is more compatible with cost-volume-profit analysis than is absorption costing.

Elbrege Corporation manufactures a single product. The company has supplied the following data: There was no beginning inventory. During the year 25,000 units were produced and 20,000 units were sold. -Under absorption costing,the unit product cost would be:

Smidt Corporation has provided the following data for its two most recent years of operation: -The net operating income (loss)under absorption costing in Year 2 is closest to:

Mullee Corporation produces a single product and has the following cost structure: The absorption costing unit product cost is:

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. -The Eastern Division's break-even sales is closest to:

Gardella Corporation has two divisions: Domestic Division and Foreign 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 Domestic Division's break-even sales is closest to:

Allocating common fixed costs to segments on segmented income statements increases the usefulness of such statements.

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

Neef 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:

Last year,Tinklenberg Corporation's variable costing net operating income was $52,400 and its inventory decreased by 1,400 units.Fixed manufacturing overhead cost was $8 per unit for both units in beginning and in ending inventory.What was the absorption costing net operating income last year?

Smidt 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:

Norenberg Corporation manufactures a single product. The following data pertain to the company's operations over the last two years: -What was the absorption costing net operating income this year?

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

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