Exam 1: Managerial Accounting and Cost Concepts

Asplund Corporation has provided the following information: Required: a.For financial reporting purposes,what is the total amount of product costs incurred to make 5,000 units? b.For financial reporting purposes,what is the total amount of period costs incurred to sell 5,000 units?

The following costs are all examples of committed fixed costs: depreciation on buildings,salaries of highly trained engineers,real estate taxes,and insurance expenses.

The following cost data pertain to the operations of Ladwig Department Stores, Inc., 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 direct costs of the Shoe Department?

Barredo 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 4,000 units are sold,the total variable cost is closest to:

Which of the following statements concerning direct and indirect costs is NOT true?

The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. -The net operating income computed using the contribution approach for the first quarter is:

The following cost data pertain to the operations of Quinonez Department Stores, Inc., 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?

Fassino Corporation reported the following data for the month of November: -The conversion cost for November was:

Indirect costs,such as manufacturing overhead,are variable costs.

The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. -The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

Schwiesow Corporation has provided the following information: -If 4,000 units are produced,the total amount of manufacturing overhead cost is closest to:

If managers are reluctant to lay off direct labor employees when activity declines leads to a decrease in the ratio of variable to fixed costs.

Classify the following costs for an auto manufacturer as either direct materials,direct labor,manufacturing overhead,or period costs. Required: Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

Direct labor cost is classified as:

Which of the following approaches to preparing an income statement includes a calculation of the gross margin?

An income statement for Sam's Bookstore for the first quarter of the year is presented below: On average, a book sells for $50. Variable selling expenses are $5 per book with the remaining selling expenses being fixed. The variable administrative expenses are 4% of sales with the remainder being fixed. -The contribution margin for Sam's Bookstore for the first quarter is:

The relative proportion of variable,fixed,and mixed costs in a company is known as the company's:

When operations are interrupted or cut back,committed fixed costs are cut in the short term because the costs of restoring them later are likely to be far less than the short-run savings that are realized

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

Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company. -The contribution margin for June is: