Exam 1: Managerial Accounting and Cost Concepts

A number of costs are listed below. Required: For each item above,indicate whether the cost is direct or indirect with respect to the cost object listed next to it.

The three cost elements ordinarily included in product costs are direct materials,direct labor,and manufacturing overhead.

Schonhardt 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 5,000 units are produced,the total amount of fixed manufacturing cost incurred is closest to:

Property taxes on a company's factory building would be classified as a(n):

Rhome 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 5,000 units are produced,the total amount of manufacturing overhead cost is closest to:

Pedregon Corporation has provided the following information: -If the selling price is $20.60 per unit,the contribution margin per unit sold is closest to:

All of the following can be differential costs except:

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device. -Property taxes on the building that will be purchased to house the manufacturing facility are:

Advertising is not a considered a product cost even if it promotes a specific product.

Schwiesow Corporation has provided the following information: -If the selling price is $18.70 per unit,the contribution margin per unit sold is closest to:

Wages paid to the factory warehouse foreman are considered an example of:

Variable costs per unit are not affected by changes in activity.

The amount that a manufacturing company could earn by renting unused portions of its warehouse is an example of an opportunity cost.

Abburi Company's manufacturing overhead is 60% of its total conversion costs.If direct labor is $52,000 and if direct materials are $28,000,the manufacturing overhead is:

Which of the following is NOT a period cost?

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:

Balerio 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: Required: a.For financial reporting purposes,what is the total amount of product costs incurred to make 9,000 units? b.If 10,000 units are sold,what is the variable cost per unit sold? c.If 10,000 units are sold,what is the total amount of variable costs related to the units sold? d.If the selling price is $18.20 per unit,what is the contribution margin per unit sold? e.What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units?

A fixed cost fluctuates in total as activity changes but remains constant on a per unit basis over the relevant range.

Shelp Corporation has provided the following information: For financial reporting purposes,the total amount of period costs incurred to sell 9,000 units is closest to: