Question 1

Allocating common fixed expenses to business segments:

Accepted Answer

A) may cause managers to erroneously discontinue business segments. 
B) may cause managers to erroneously keep business segments that should be dropped.. 
C) ensures that all costs are covered. 
D) helps managers make good decisions. 
A) may cause managers to erroneously discontinue business segments. 
B) may cause managers to erroneously keep business segments that should be dropped.. 
C) ensures that all costs are covered. 
D) helps managers make good decisions.

Question 2

When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:

Accepted Answer

A) Traceable fixed expenses ÷ Segment CM ratio 
B) Common fixed expenses ÷ Segment CM ratio 
C) (Traceable fixed expenses + Common fixed expenses)÷ Segment CM ratio 
D) Non-traceable fixed expenses ÷ Segment CM ratio 
A) Traceable fixed expenses ÷ Segment CM ratio 
B) Common fixed expenses ÷ Segment CM ratio 
C) (Traceable fixed expenses + Common fixed expenses)÷ Segment CM ratio 
D) Non-traceable fixed expenses ÷ Segment CM ratio

Question 3

Data for September concerning Greenberger Corporation's two major business segments--Fibers and Feedstocks--appear below:   Common fixed expenses totaled $344,000 and were allocated as follows: $175,000 to the Fibers business segment and $169,000 to the Feedstocks business segment.
Required:
Prepare a segmented income statement in the contribution format for the company.Omit percentages; show only dollar amounts.

Accepted Answer

The answer of Data for September concerning Greenberger Corporation's two...

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

The net operating income (loss)under absorption costing in Year 2 is closest to:

Accepted Answer

A) $74,000 
B) $183,000 
C) $68,000 
D) $138,000 
A) $74,000 
B) $183,000 
C) $68,000 
D) $138,000

Question 6

The unit product cost under variable costing in Year 1 is closest to:

Accepted Answer

A) $24.00 
B) $33.00 
C) $19.00 
D) $38.00 
A) $24.00 
B) $33.00 
C) $19.00 
D) $38.00

Question 7

Which costing method, absorption or variable costing, would show a higher operating income for the year and by what amount?

Accepted Answer

A) Absorption costing net operating income would be higher than variable costing net operating income by $2,500. 
B) Variable costing net operating income would be higher than absorption costing net operating income by $2,500. 
C) Absorption costing net operating income would be higher than variable costing net operating income by $5,500. 
D) Variable costing net operating income would be higher than absorption costing net operating income by $5,500. 
A) Absorption costing net operating income would be higher than variable costing net operating income by $2,500. 
B) Variable costing net operating income would be higher than absorption costing net operating income by $2,500. 
C) Absorption costing net operating income would be higher than variable costing net operating income by $5,500. 
D) Variable costing net operating income would be higher than absorption costing net operating income by $5,500.

Question 8

The unit product cost under absorption costing in Year 2 is closest to:

Accepted Answer

A) $48.00 
B) $22.00 
C) $20.00 
D) $42.00 
A) $48.00 
B) $22.00 
C) $20.00 
D) $42.00

Question 9

Segment margin is sales less variable expenses less traceable fixed expenses.

Accepted Answer

A) True 
 B)False

Question 10

Beamish 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.The absorption costing unit product cost was:

Accepted Answer

A) $93 per unit 
B) $97 per unit 
C) $136 per unit 
D) $194 per unit 
A) $93 per unit 
B) $97 per unit 
C) $136 per unit 
D) $194 per unit

Question 11

Under variable costing, the unit product cost is:

Accepted Answer

A) $24 per unit 
B) $20 per unit 
C) $18 per unit 
D) $21 per unit 
A) $24 per unit 
B) $20 per unit 
C) $18 per unit 
D) $21 per unit

Question 12

Phinisee Corporation manufactures a single product.The following data pertain to the  company's operations over the last two years:   Required:
a.Determine the absorption costing net operating income for last year.Show your work!
b.Determine the absorption costing net operating income for this year.Show your work!

Accepted Answer

a.and b.
Year 1:
Manufacturing overhead

Question 13

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

Accepted Answer

A) $124 per unit 
B) $132 per unit 
C) $113 per unit 
D) $143 per unit 
A) $124 per unit 
B) $132 per unit 
C) $113 per unit 
D) $143 per unit

Question 14

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

Accepted Answer

A) $369,408 
B) $421,526 
C) $584,815 
D) $285,526 
A) $369,408 
B) $421,526 
C) $584,815 
D) $285,526

Question 15

In last year's income statement segmented by division, what were Nantor's total common fixed expenses?

Accepted Answer

A) $1,300,000 
B) $1,600,000 
C) $1,250,000 
D) $1,200,000 
A) $1,300,000 
B) $1,600,000 
C) $1,250,000 
D) $1,200,000

Question 16

Under variable costing, only variable production costs are treated as product costs.

Accepted Answer

A) True 
 B)False

Question 17

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 18

Carroll Corporation has two products, Q and P.During June, the company's net operating income was $25,000, and the common fixed expenses were $37,000.The contribution margin ratio for Product Q was 30%, its sales were $200,000, and its segment margin was $21,000.If the contribution margin for Product P was $80,000, the segment margin for Product P was:
A)$62,000
B)$59,000
C)$62,000
D)$41,000

Accepted Answer

@#IMG-DLM&_TB2627_00 Net operating income = Segmen

Question 19

What is the net operating income for the month under absorption costing?

Accepted Answer

A) $8,800 
B) $24,800 
C) $1,700 
D) $12,200 
A) $8,800 
B) $24,800 
C) $1,700 
D) $12,200

Question 20

If operations in the Rural Sales Territory would have been discontinued at the beginning of last year, how would this have changed the net operating income of Azuki Corporation as a whole?

Accepted Answer

A) $5,000 increase 
B) $6,000 increase 
C) $11,000 increase 
D) $24,000 decrease 
A) $5,000 increase 
B) $6,000 increase 
C) $11,000 increase 
D) $24,000 decrease

Allocating common fixed expenses to business segments:

When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:

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

The net operating income (loss)under absorption costing in Year 2 is closest to:

The unit product cost under variable costing in Year 1 is closest to:

Which costing method, absorption or variable costing, would show a higher operating income for the year and by what amount?

The unit product cost under absorption costing in Year 2 is closest to:

Segment margin is sales less variable expenses less traceable fixed expenses.

Beamish 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.The absorption costing unit product cost was:

Under variable costing, the unit product cost is:

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

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

In last year's income statement segmented by division, what were Nantor's total common fixed expenses?

Under variable costing, only variable production costs are treated as product costs.

The unit product cost under variable costing in Year 1 is closest to:

What is the net operating income for the month under absorption costing?

If operations in the Rural Sales Territory would have been discontinued at the beginning of last year, how would this have changed the net operating income of Azuki Corporation as a whole?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

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Exam 7: Variable Costing and Segment Reporting: Tools for Management

Allocating common fixed expenses to business segments:

When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:

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

The net operating income (loss)under absorption costing in Year 2 is closest to:

The unit product cost under variable costing in Year 1 is closest to:

Which costing method, absorption or variable costing, would show a higher operating income for the year and by what amount?

The unit product cost under absorption costing in Year 2 is closest to:

Segment margin is sales less variable expenses less traceable fixed expenses.

Beamish 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.The absorption costing unit product cost was:

Under variable costing, the unit product cost is:

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

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

In last year's income statement segmented by division, what were Nantor's total common fixed expenses?

Under variable costing, only variable production costs are treated as product costs.

The unit product cost under variable costing in Year 1 is closest to:

What is the net operating income for the month under absorption costing?

If operations in the Rural Sales Territory would have been discontinued at the beginning of last year, how would this have changed the net operating income of Azuki Corporation as a whole?

Managerial Accounting and Cost Concepts

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters