Question 1

The total of the period costs listed above for March is:

Accepted Answer

A) $68,000 
B) $293,000 
C) $291,000 
D) $223,000 
A) $68,000 
B) $293,000 
C) $291,000 
D) $223,000

Question 2

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:

Accepted Answer

A) direct materials. 
B) a period cost. 
C) administrative expense. 
D) manufacturing overhead. 
A) direct materials. 
B) a period cost. 
C) administrative expense. 
D) manufacturing overhead.

Question 3

What is the total of the product costs above?

Accepted Answer

A) $0 
B) $69,000 
C) $155,000 
D) $159,000 
A) $0 
B) $69,000 
C) $155,000 
D) $159,000

Question 4

Bauman Sales Corporation, a merchandising company, reported total sales of $4,069,800 for November.The cost of goods sold (all variable)was $2,351,100, the total variable selling expense was $204,000, the total fixed selling expense was $117,700, the total variable administrative expense was $102,000, and the total fixed administrative expense was $267,000.
Required:
a.Prepare a contribution format income statement for November.
b.Prepare a traditional format income statement for November.

Accepted Answer

a.Contribution Forma

Question 5

Within the relevant range, a difference between variable costs and fixed costs is:

Accepted Answer

A) variable costs per unit fluctuate and fixed costs per unit remain constant. 
B) variable costs per unit are constant and fixed costs per unit fluctuate. 
C) both total variable costs and total fixed costs are constant. 
D) both total variable costs and total fixed costs fluctuate. 
A) variable costs per unit fluctuate and fixed costs per unit remain constant. 
B) variable costs per unit are constant and fixed costs per unit fluctuate. 
C) both total variable costs and total fixed costs are constant. 
D) both total variable costs and total fixed costs fluctuate.

Question 6

Committed fixed costs remain largely unchanged in the short run.

Accepted Answer

A) True 
 B)False

Question 7

A direct cost is a cost that can be easily traced to the particular cost object under consideration.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) $66,000 
B) $74,000 
C) $106,000 
D) $71,000 
A) $66,000 
B) $74,000 
C) $106,000 
D) $71,000

Question 9

For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

Accepted Answer

A) $43,400 
B) $55,400 
C) $59,400 
D) $12,000 
A) $43,400 
B) $55,400 
C) $59,400 
D) $12,000

Question 10

To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 18,500 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $6.60 
B) $6.87 
C) $7.17 
D) $7.14 
A) $6.60 
B) $6.87 
C) $7.17 
D) $7.14

Question 11

For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

Accepted Answer

A) $12,200 
B) $7,800 
C) $4,400 
D) $8,100 
A) $12,200 
B) $7,800 
C) $4,400 
D) $8,100

Question 12

Schonhardt Corporation's relevant range of activity is 2,000 units to 6,000 units.When it produces and sells 4,000 units, its average costs per unit are as follows:    If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

Accepted Answer

A) $16,800 
B) $14,000 
C) $12,600 
D) $11,200 
A) $16,800 
B) $14,000 
C) $12,600 
D) $11,200

Question 13

If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

Accepted Answer

A) $5,250 
B) $11,850 
C) $8,800 
D) $14,050 
A) $5,250 
B) $11,850 
C) $8,800 
D) $14,050

Question 14

A fixed cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases.

Accepted Answer

A) True 
 B)False

Question 15

Fanelli Corporation, a merchandising company, reported the following results for July:   Cost of goods sold is a variable cost in this company.
Required:
a.Prepare a traditional format income statement for July.
b.Prepare a contribution format income statement for July.

Accepted Answer

a.Traditional Format

Question 16

The net operating income for June was:

Accepted Answer

A) $132,000 
B) $126,000 
C) $85,000 
D) $79,000 
A) $132,000 
B) $126,000 
C) $85,000 
D) $79,000

Question 17

If 5,000 units are sold, the total variable cost is closest to:

Accepted Answer

A) $53,000 
B) $65,000 
C) $60,500 
D) $77,000 
A) $53,000 
B) $65,000 
C) $60,500 
D) $77,000

Question 18

Wages paid to the supervisor of the warehouse where raw materials and parts are temporarily stored before being used in production is considered an example of:

Accepted Answer

The answer of Wages paid to the supervisor of the...

Question 19

Most companies use the contribution approach in preparing financial statements for external reporting purposes.

Accepted Answer

A) True 
 B)False

Question 20

Differential costs can only be variable.

Accepted Answer

A) True 
 B)False

The total of the period costs listed above for March is:

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:

What is the total of the product costs above?

Within the relevant range, a difference between variable costs and fixed costs is:

Committed fixed costs remain largely unchanged in the short run.

A direct cost is a cost that can be easily traced to the particular cost object under consideration.

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

For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 18,500 units? (Assume that this sales volume is within the relevant range.)

For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

Schonhardt Corporation's relevant range of activity is 2,000 units to 6,000 units.When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

A fixed cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases.

Fanelli Corporation, a merchandising company, reported the following results for July: Cost of goods sold is a variable cost in this company. Required: a.Prepare a traditional format income statement for July. b.Prepare a contribution format income statement for July.

The net operating income for June was:

If 5,000 units are sold, the total variable cost is closest to:

Wages paid to the supervisor of the warehouse where raw materials and parts are temporarily stored before being used in production is considered an example of:

Most companies use the contribution approach in preparing financial statements for external reporting purposes.

Differential costs can only be variable.

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

The total of the period costs listed above for March is:

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:

What is the total of the product costs above?

Within the relevant range, a difference between variable costs and fixed costs is:

Committed fixed costs remain largely unchanged in the short run.

A direct cost is a cost that can be easily traced to the particular cost object under consideration.

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

For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:

To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 18,500 units? (Assume that this sales volume is within the relevant range.)

For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

Schonhardt Corporation's relevant range of activity is 2,000 units to 6,000 units.When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:

A fixed cost is constant if expressed on a per unit basis but the total dollar amount changes as the number of units increases or decreases.

Fanelli Corporation, a merchandising company, reported the following results for July: Cost of goods sold is a variable cost in this company. Required: a.Prepare a traditional format income statement for July. b.Prepare a contribution format income statement for July.

The net operating income for June was:

If 5,000 units are sold, the total variable cost is closest to:

Wages paid to the supervisor of the warehouse where raw materials and parts are temporarily stored before being used in production is considered an example of:

Most companies use the contribution approach in preparing financial statements for external reporting purposes.

Differential costs can only be variable.

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