Exam 1: Managerial Accounting and Cost Concepts

Bowering 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:

Prime cost is the sum of direct materials cost and direct labor cost.

Factory overhead is typically a(n):

Perteet 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 produced,the total amount of manufacturing overhead cost is closest to:

Manufacturing overhead includes:

Direct costs:

A partial listing of costs incurred at Archut Corporation during September appears below: -The total of the manufacturing overhead costs listed above for September is:

Batterson Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 28,000 units, the lease cost was $697,200. -To the nearest whole cent,what should be the average lease cost per unit at a sales volume of 26,400 units in a month? (Assume that this sales volume is within the relevant range.)

An example of a committed fixed cost is:

For the past 8 months,Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable.This cost per unit increase may be due to _____________ costs if the level of activity at Jinan is _______________.

In the standard cost formula Y = a + bX,what does the "X" represent?

Myklebust Corporation's relevant range of activity is 4,000 units to 8,000 units.When it produces and sells 6,000 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 6,000 units? b.For financial reporting purposes,what is the total amount of period costs incurred to sell 6,000 units? c.If the selling price is $20.20 per unit,what is the contribution margin per unit sold? d.If 7,000 units are produced,what is the total amount of direct manufacturing cost incurred? e.If 7,000 units are produced,what is the total amount of indirect manufacturing cost incurred? f.What incremental manufacturing cost will the company incur if it increases production from 6,000 to 6,001 units?

Sparacino Corporation has provided the following information: If 5,000 units are produced,the total amount of manufacturing overhead cost is closest to:

A cost that differs from one month to another is known as a sunk cost.

Streif Inc., a local retailer, has provided the following data for the month of June: -The gross margin for September was:

Kesterson Corporation has provided the following information: -If the selling price is $21.90 per unit,the contribution margin per unit sold is closest to:

Contribution margin and gross margin mean the same thing.

Dizzy gives out a free T-shirt to every 100th customer entering the park.The cost of this T-shirt would best be described as a:

The contribution format income statement is used as an internal planning and decision-making tool.Its emphasis on cost behavior aids cost-volume-profit analysis,management performance appraisals,and budgeting.

Bressette Corporation has provided the following information: For financial reporting purposes,the total amount of product costs incurred to make 5,000 units is closest to: