Question 1

Tirri Corporation has provided the following information:   If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:

Accepted Answer

A) $12.65 
B) $6.65 
C) $15.45 
D) $9.70 
A) $12.65 
B) $6.65 
C) $15.45 
D) $9.70

Question 2

The costs of direct materials are classified as:

Accepted Answer

The answer of The costs of direct materials are classified...

Question 3

A decrease in production will ordinarily result in a decrease in fixed production costs per unit.

Accepted Answer

A) True 
 B)False

Question 4

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Accepted Answer

A) $78,000 
B) $45,000 
C) $41,000 
D) $37,000 
A) $78,000 
B) $45,000 
C) $41,000 
D) $37,000

Question 5

Within the relevant range, variable costs can be expected to:

Accepted Answer

A) vary in total in direct proportion to changes in the activity level. 
B) remain constant in total as the activity level changes. 
C) increase on a per unit basis as the activity level increases. 
D) increase on a per unit basis as the activity level decreases. 
A) vary in total in direct proportion to changes in the activity level. 
B) remain constant in total as the activity level changes. 
C) increase on a per unit basis as the activity level increases. 
D) increase on a per unit basis as the activity level decreases.

Question 6

Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:

Accepted Answer

A) fixed cost 
B) mixed cost 
C) step-variable cost 
D) true variable cost 
A) fixed cost 
B) mixed cost 
C) step-variable cost 
D) true variable cost

Question 7

A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.

Accepted Answer

A) True 
 B)False

Question 8

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 18,400 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $126,720 
B) $132,000 
C) $121,440 
D) $143,478 
A) $126,720 
B) $132,000 
C) $121,440 
D) $143,478

Question 9

A cost incurred in the past that is not relevant to any current decision is classified as a(n):

Accepted Answer

A) period cost. 
B) opportunity cost. 
C) sunk cost. 
D) differential cost. 
A) period cost. 
B) opportunity cost. 
C) sunk cost. 
D) differential cost.

Question 10

The contribution margin for the University Store for the first quarter is:

Accepted Answer

A) $660,000 
B) $700,000 
C) $180,000 
D) $140,000 
A) $660,000 
B) $700,000 
C) $180,000 
D) $140,000

Question 11

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

Accepted Answer

A) $20,500 
B) $23,000 
C) $18,000 
D) $19,250 
A) $20,500 
B) $23,000 
C) $18,000 
D) $19,250

Question 12

If managers are reluctant to lay off direct labor employees when activity declines leads to a decrease in the ratio of variable to fixed costs.

Accepted Answer

A) True 
 B)False

Question 13

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs.    Required:
Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

Accepted Answer

The answer of Classify the following costs for an auto...

Question 14

The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

Accepted Answer

A) Y = $102,000 + $5X 
B) Y = $102,000 + $7X 
C) Y = $78,000 + $7X 
D) Y = $78,000 + $9X 
A) Y = $102,000 + $5X 
B) Y = $102,000 + $7X 
C) Y = $78,000 + $7X 
D) Y = $78,000 + $9X

Question 15

What would be the total variable cost at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $137,020 
B) $131,750 
C) $162,950 
D) $32,448 
A) $137,020 
B) $131,750 
C) $162,950 
D) $32,448

Question 16

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?

Accepted Answer

a. @#IMG-DLM&_TB2627_00 b. @#IMG-DLM&_TB2627_00 c. @#IMG-DLM&_TB2627_0

Question 17

If 4,000 units are sold, the total variable cost is closest to:

Accepted Answer

A) $67,000 
B) $47,600 
C) $51,400 
D) $58,800 
A) $67,000 
B) $47,600 
C) $51,400 
D) $58,800

Question 18

As the level of activity increases, how will a mixed cost in total and per unit behave?

Accepted Answer

The answer of As the level of activity increases, how...

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

Manufacturing overhead includes:

Accepted Answer

A) all direct material, direct labor and administrative costs. 
B) all manufacturing costs except direct labor. 
C) all manufacturing costs except direct labor and direct materials. 
D) all selling and administrative costs. 
A) all direct material, direct labor and administrative costs. 
B) all manufacturing costs except direct labor. 
C) all manufacturing costs except direct labor and direct materials. 
D) all selling and administrative costs.

Tirri Corporation has provided the following information: If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:

The costs of direct materials are classified as:

A decrease in production will ordinarily result in a decrease in fixed production costs per unit.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Within the relevant range, variable costs can be expected to:

Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:

A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 18,400 units? (Assume that this sales volume is within the relevant range.)

A cost incurred in the past that is not relevant to any current decision is classified as a(n):

The contribution margin for the University Store for the first quarter is:

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

If managers are reluctant to lay off direct labor employees when activity declines leads to a decrease in the ratio of variable to fixed costs.

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs. Required: Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

What would be the total variable cost at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

If 4,000 units are sold, the total variable cost is closest to:

As the level of activity increases, how will a mixed cost in total and per unit behave?

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

Manufacturing overhead includes:

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

Variable Costing and Segment Reporting: Tools for Management

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 1: Managerial Accounting and Cost Concepts

Tirri Corporation has provided the following information: If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:

The costs of direct materials are classified as:

A decrease in production will ordinarily result in a decrease in fixed production costs per unit.

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Within the relevant range, variable costs can be expected to:

Dizzy employees a certified operator for each of its 35 rides.Each operator is paid $20 per hour.The cost of the certified operators would best be described as a:

A factory supervisor's salary would be classified as an indirect cost with respect to a unit of product.

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 18,400 units? (Assume that this sales volume is within the relevant range.)

A cost incurred in the past that is not relevant to any current decision is classified as a(n):

The contribution margin for the University Store for the first quarter is:

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

If managers are reluctant to lay off direct labor employees when activity declines leads to a decrease in the ratio of variable to fixed costs.

Classify the following costs for an auto manufacturer as either direct materials, direct labor, manufacturing overhead, or period costs. Required: Complete the answer sheet above by placing an "X" under each heading that identifies the cost involved.

The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

What would be the total variable cost at an activity level of 5,200 units? Assume that this level of activity is within the relevant range.

If 4,000 units are sold, the total variable cost is closest to:

As the level of activity increases, how will a mixed cost in total and per unit behave?

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

Manufacturing overhead includes:

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

Variable Costing and Segment Reporting: Tools for Management

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