Question 1

The unit product cost under absorption costing is closest to:

Accepted Answer

A) $21.00 
B) $31.00 
C) $35.00 
D) $10.00 
A) $21.00 
B) $31.00 
C) $35.00 
D) $10.00

Question 2

Qadir Corporation, which has only one product, has provided the following data concerning its most recent month of operations:   Required:
a.What is the unit product cost for the month under variable costing?
b.Prepare a contribution format income statement for the month using variable costing.
c.Without preparing an income statement, determine the absorption costing net operating income for the month.(Hint: Use the reconciliation method.)

Accepted Answer

a.Variable costing unit product cost @#IMG-DLM&_TB

Question 3

Schlenz Inc., which produces a single product, has provided the following data for its most recent month of operation:   The company had no beginning or ending inventories.
Required:
Compute the unit product cost under variable costing.Show your work!

Accepted Answer

The answer of Schlenz Inc., which produces a single product,...

Question 4

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

Accepted Answer

A) $19.00 
B) $14.00 
C) $33.00 
D) $38.00 
A) $19.00 
B) $14.00 
C) $33.00 
D) $38.00

Question 5

The salary paid to a store manager is not a traceable fixed expense of the store.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

A) $146,000 
B) $118,000 
C) $47,000 
D) $41,000 
A) $146,000 
B) $118,000 
C) $47,000 
D) $41,000

Question 7

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

Accepted Answer

A) $192,661 
B) $265,119 
C) $386,408 
D) $130,508 
A) $192,661 
B) $265,119 
C) $386,408 
D) $130,508

Question 8

What is the unit product cost for the month under variable costing?

Accepted Answer

A) $69 per unit 
B) $65 per unit 
C) $85 per unit 
D) $81 per unit 
A) $69 per unit 
B) $65 per unit 
C) $85 per unit 
D) $81 per unit

Question 9

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

Accepted Answer

A) $8,700 
B) $5,700 
C) $14,400 
D) $(12,000) 
A) $8,700 
B) $5,700 
C) $14,400 
D) $(12,000)

Question 10

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

Accepted Answer

A) $420,000 
B) $480,000 
C) $139,000 
D) $159,000 
A) $420,000 
B) $480,000 
C) $139,000 
D) $159,000

Question 11

Under variable costing, what is McCoy's net operating income for its first year?

Accepted Answer

A) $266,000 
B) $741,000 
C) $1,261,600 
D) $2,173,600 
A) $266,000 
B) $741,000 
C) $1,261,600 
D) $2,173,600

Question 12

Petteway Corporation has two divisions: Home  Division and Commercial Division.The following report is for the most recent operating period:   The common fixed expenses have been allocated to the divisions on the basis of sales.
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 13

Assuming the LIFO inventory flow assumption, when production exceeds sales for the period, absorption costing net operating income will exceed variable costing net operating income.

Accepted Answer

A) True 
 B)False

Question 14

Absorption costing treats all fixed costs as product costs.

Accepted Answer

A) True 
 B)False

Question 15

Koff Corporation has two divisions: Garden Division and Farm Division.The following report is for the most recent operating period:   Required:
a.What is the Garden Division's break-even in sales dollars?
b.What is the Farm Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?
d.What would be the company's overall net operating income if the company operated at its two division's break-even points?

Accepted Answer

a.Garden Division break-even:
Segment CM

Question 16

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

Accepted Answer

A) $77.00 
B) $48.00 
C) $23.00 
D) $71.00 
A) $77.00 
B) $48.00 
C) $23.00 
D) $71.00

Question 17

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

Accepted Answer

A) $16,800 
B) $37,400 
C) $50,600 
D) $66,000 
A) $16,800 
B) $37,400 
C) $50,600 
D) $66,000

Question 18

The unit product cost under absorption costing was:

Accepted Answer

A) $170 per unit 
B) $115 per unit 
C) $255 per unit 
D) $110 per unit 
A) $170 per unit 
B) $115 per unit 
C) $255 per unit 
D) $110 per unit

Question 19

The unit product cost under absorption costing is closest to:

Accepted Answer

A) $39.00 
B) $21.00 
C) $34.00 
D) $13.00 
A) $39.00 
B) $21.00 
C) $34.00 
D) $13.00

Question 20

What is the unit product cost for the month under variable costing?

Accepted Answer

A) $104 per unit 
B) $79 per unit 
C) $88 per unit 
D) $95 per unit 
A) $104 per unit 
B) $79 per unit 
C) $88 per unit 
D) $95 per unit

The unit product cost under absorption costing is closest to:

Schlenz Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under variable costing.Show your work!

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

The salary paid to a store manager is not a traceable fixed expense of the store.

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

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

What is the unit product cost for the month under variable costing?

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

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

Under variable costing, what is McCoy's net operating income for its first year?

Assuming the LIFO inventory flow assumption, when production exceeds sales for the period, absorption costing net operating income will exceed variable costing net operating income.

Absorption costing treats all fixed costs as product costs.

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

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

The unit product cost under absorption costing was:

The unit product cost under absorption costing is closest to:

What is the unit product cost for the month under variable costing?

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 unit product cost under absorption costing is closest to:

Schlenz Inc., which produces a single product, has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under variable costing.Show your work!

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

The salary paid to a store manager is not a traceable fixed expense of the store.

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

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

What is the unit product cost for the month under variable costing?

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

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

Under variable costing, what is McCoy's net operating income for its first year?

Assuming the LIFO inventory flow assumption, when production exceeds sales for the period, absorption costing net operating income will exceed variable costing net operating income.

Absorption costing treats all fixed costs as product costs.

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

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

The unit product cost under absorption costing was:

The unit product cost under absorption costing is closest to:

What is the unit product cost for the month under variable costing?

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