Question 1

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

Accepted Answer

A) $630,000 
B) $75,000 
C) $87,000 
D) $580,000 
A) $630,000 
B) $75,000 
C) $87,000 
D) $580,000

Question 2

Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year:   What is Shun's absorption costing unit product cost for last year?

Accepted Answer

A) $4.10 per unit 
B) $4.55 per unit 
C) $5.85 per unit 
D) $6.30 per unit 
A) $4.10 per unit 
B) $4.55 per unit 
C) $5.85 per unit 
D) $6.30 per unit

Question 3

Corbel Corporation has two divisions: Division A and Division B.Last month, the company reported a contribution margin of $60,000 for Division A.Division B had a contribution margin ratio of 40% and its sales were $300,000.Net operating income for the company was $40,000 and traceable fixed expenses were $80,000.Corbel Corporation's common fixed expenses were:

Accepted Answer

A) $140,000 
B) $60,000 
C) $100,000 
D) $80,000 
A) $140,000 
B) $60,000 
C) $100,000 
D) $80,000

Question 4

Boylston Corporation has provided the following data for its two most recent years of operation.The company makes a product that it sells for $75 per unit.It began Year 1 with no units in beginning inventory.     Required:
a.Assume the company uses absorption costing.Compute the unit product cost in each year.
b.Assume the company uses variable costing.Compute the unit product cost in each year.
c.Assume the company uses absorption costing.Prepare an income statement for each year.
d.Assume the company uses variable costing.Prepare an income statement for each year.

Accepted Answer

a.Absorption costing unit product costs:

Question 5

The unit product cost under variable costing was:

Accepted Answer

A) $115 per unit 
B) $123 per unit 
C) $118 per unit 
D) $170 per unit 
A) $115 per unit 
B) $123 per unit 
C) $118 per unit 
D) $170 per unit

Question 6

The total contribution margin for the month under variable costing is:

Accepted Answer

A) $27,000 
B) $63,000 
C) $8,600 
D) $75,000 
A) $27,000 
B) $63,000 
C) $8,600 
D) $75,000

Question 7

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

Accepted Answer

A) $352,000 
B) $145,000 
C) $234,000 
D) $249,000 
A) $352,000 
B) $145,000 
C) $234,000 
D) $249,000

Question 8

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 9

Miscavage Corporation has two divisions: the Beta Division and the Alpha Division.The Beta Division has sales of $580,000, variable expenses of $301,600, and traceable fixed expenses of $186,500.The Alpha Division has sales of $510,000, variable expenses of $178,500, and traceable fixed expenses of $222,100.The total amount of common fixed expenses not traceable to the individual divisions is $235,500.What is the company's net operating income?

Accepted Answer

A) $374,400 
B) $201,300 
C) $609,900 
D) ($34,200) 
A) $374,400 
B) $201,300 
C) $609,900 
D) ($34,200)

Question 10

Under absorption costing, the cost of goods sold for the year would be:

Accepted Answer

A) $258,400 
B) $394,400 
C) $353,600 
D) $398,400 
A) $258,400 
B) $394,400 
C) $353,600 
D) $398,400

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

Which of the following is true of a company that uses absorption costing?

Accepted Answer

A) Net operating income fluctuates directly with changes in sales volume. 
B) Fixed production and fixed selling costs are considered to be product costs. 
C) Unit product costs can change as a result of changes in the number of units manufactured. 
D) Variable selling expenses are included in product costs. 
A) Net operating income fluctuates directly with changes in sales volume. 
B) Fixed production and fixed selling costs are considered to be product costs. 
C) Unit product costs can change as a result of changes in the number of units manufactured. 
D) Variable selling expenses are included in product costs.

Question 13

What was the absorption costing net operating income last year?

Accepted Answer

A) $106,000 
B) $86,000 
C) $54,000 
D) $118,000 
A) $106,000 
B) $86,000 
C) $54,000 
D) $118,000

Question 14

Corbett Corporation manufactures a single product.Last year, variable costing net operating income was $72,000.The fixed manufacturing overhead costs deferred in inventory under absorption costing amounted to $29,000.
Required:
Determine the absorption costing net operating income last year.Show your work!

Accepted Answer

The answer of Corbett Corporation manufactures a single product.Last year,...

Question 15

The net operating income (loss)under absorption costing in Year 1 is closest to:

Accepted Answer

A) $126,000 
B) $96,000 
C) $26,000 
D) $2,000 
A) $126,000 
B) $96,000 
C) $26,000 
D) $2,000

Question 16

Clouthier Corporation has two divisions: Home Division and Commercial Division.The following report is for the most recent operating period:   The company's common fixed expenses total $29,700.
Required:
a.What is the Home Division's break-even in sales dollars?
b.What is the Commercial Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?

Accepted Answer

@#IMG-DLM&_TB2627_00 a.Home Division break-even:
S

Question 17

Variable costing net operating income is usually closer to the net cash flow of a period than is absorption costing net operating income.

Accepted Answer

A) True 
 B)False

Question 18

Homeyer Corporation has provided the following data for its two most recent years of operation:      The net operating income (loss)under absorption costing in Year 1 is closest to:

Accepted Answer

A) $102,000 
B) $30,000 
C) $176,000 
D) $208,000 
A) $102,000 
B) $30,000 
C) $176,000 
D) $208,000

Question 19

Sipho Corporation manufactures a single product.Last year, the company's variable costing net operating income was $90,900.Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900.What was the absorption costing net operating income last year?

Accepted Answer

A) $69,000 
B) $90,900 
C) $21,900 
D) $112,800 
A) $69,000 
B) $90,900 
C) $21,900 
D) $112,800

Question 20

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

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

Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year: What is Shun's absorption costing unit product cost for last year?

The unit product cost under variable costing was:

The total contribution margin for the month under variable costing is:

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

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:

Under absorption costing, the cost of goods sold for the year would be:

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

Which of the following is true of a company that uses absorption costing?

What was the absorption costing net operating income last year?

The net operating income (loss)under absorption costing in Year 1 is closest to:

Variable costing net operating income is usually closer to the net cash flow of a period than is absorption costing net operating income.

Homeyer Corporation has provided the following data for its two most recent years of operation: The net operating income (loss)under absorption costing in Year 1 is closest to:

Sipho Corporation manufactures a single product.Last year, the company's variable costing net operating income was $90,900.Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900.What was the absorption costing net operating income last year?

The net operating income (loss)under variable costing in Year 1 is closest to:

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

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

Shun Corporation manufactures and sells a hand held calculator.The following information relates to Shun's operations for last year: What is Shun's absorption costing unit product cost for last year?

The unit product cost under variable costing was:

The total contribution margin for the month under variable costing is:

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

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:

Under absorption costing, the cost of goods sold for the year would be:

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

Which of the following is true of a company that uses absorption costing?

What was the absorption costing net operating income last year?

The net operating income (loss)under absorption costing in Year 1 is closest to:

Variable costing net operating income is usually closer to the net cash flow of a period than is absorption costing net operating income.

Homeyer Corporation has provided the following data for its two most recent years of operation: The net operating income (loss)under absorption costing in Year 1 is closest to:

Sipho Corporation manufactures a single product.Last year, the company's variable costing net operating income was $90,900.Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $21,900.What was the absorption costing net operating income last year?

The net operating income (loss)under variable costing in Year 1 is closest to:

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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