Question 1

A variable cost remains constant if expressed on a unit basis.

Accepted Answer

A) True 
 B)False

Question 2

For liability insurance, Dizzy pays a set monthly fee plus a small additional amount for every patron entering the park.The cost of liability insurance 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 3

The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

Accepted Answer

A) True 
 B)False

Question 4

For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

Accepted Answer

A) $12,500 
B) $8,300 
C) $7,000 
D) $5,500 
A) $12,500 
B) $8,300 
C) $7,000 
D) $5,500

Question 5

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

Accepted Answer

A) Property taxes on a headquarters building. 
B) Legal department salaries. 
C) Cost of leasing the company's mainframe computer. 
D) Production supplies. 
A) Property taxes on a headquarters building. 
B) Legal department salaries. 
C) Cost of leasing the company's mainframe computer. 
D) Production supplies.

Question 6

The net operating income computed using the contribution approach for the first quarter is:

Accepted Answer

A) $30,000 
B) $180,000 
C) $140,000 
D) $0 
A) $30,000 
B) $180,000 
C) $140,000 
D) $0

Question 7

Mullennex 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 average fixed manufacturing cost per unit produced is closest to:

Accepted Answer

A) $2.40 
B) $2.70 
C) $3.00 
D) $3.75 
A) $2.40 
B) $2.70 
C) $3.00 
D) $3.75

Question 8

The concept of the relevant range does not apply to variable costs.

Accepted Answer

A) True 
 B)False

Question 9

Administrative costs are indirect costs.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) $7,700 
B) $11,600 
C) $3,600 
D) $8,000 
A) $7,700 
B) $11,600 
C) $3,600 
D) $8,000

Question 11

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 26,400 units in a month? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $25.66 
B) $24.90 
C) $23.88 
D) $26.41 
A) $25.66 
B) $24.90 
C) $23.88 
D) $26.41

Question 12

In making the decision to buy the model 240 machine rather than the model 310 machine, the sunk cost was:

Accepted Answer

A) $545,000 
B) $450,000 
C) $527,000 
D) $532,000 
A) $545,000 
B) $450,000 
C) $527,000 
D) $532,000

Question 13

The prime cost for November was:

Accepted Answer

A) $136,000 
B) $60,000 
C) $105,000 
D) $112,000 
A) $136,000 
B) $60,000 
C) $105,000 
D) $112,000

Question 14

The amount that a manufacturing company could earn by renting unused portions of its warehouse is an example of an opportunity cost.

Accepted Answer

A) True 
 B)False

Question 15

Which costs will change with a decrease in activity within the relevant range?

Accepted Answer

A) Total fixed costs and total variable cost. 
B) Unit fixed costs and total variable cost. 
C) Unit variable cost and unit fixed cost. 
D) Unit fixed cost and total fixed cost. 
A) Total fixed costs and total variable cost. 
B) Unit fixed costs and total variable cost. 
C) Unit variable cost and unit fixed cost. 
D) Unit fixed cost and total fixed cost.

Question 16

Property taxes on a company's factory building would be classified as a(n):

Accepted Answer

A) product cost. 
B) opportunity cost. 
C) period cost. 
D) variable cost. 
A) product cost. 
B) opportunity cost. 
C) period cost. 
D) variable cost.

Question 17

If the selling price is $18.70 per unit, the contribution margin per unit sold is closest to:

Accepted Answer

A) $5.10 
B) $1.80 
C) $4.30 
D) $8.15 
A) $5.10 
B) $1.80 
C) $4.30 
D) $8.15

Question 18

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

Accepted Answer

A) $18,000 
B) $19,250 
C) $18,625 
D) $20,500 
A) $18,000 
B) $19,250 
C) $18,625 
D) $20,500

Question 19

The cost of electricity for running production equipment is classified as:

Accepted Answer

The answer of The cost of electricity for running production...

A variable cost remains constant if expressed on a unit basis.

For liability insurance, Dizzy pays a set monthly fee plus a small additional amount for every patron entering the park.The cost of liability insurance would best be described as a:

The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

The net operating income computed using the contribution approach for the first quarter is:

Mullennex 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 average fixed manufacturing cost per unit produced is closest to:

The concept of the relevant range does not apply to variable costs.

Administrative costs are indirect costs.

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

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 26,400 units in a month? (Assume that this sales volume is within the relevant range.)

In making the decision to buy the model 240 machine rather than the model 310 machine, the sunk cost was:

The prime cost for November was:

The amount that a manufacturing company could earn by renting unused portions of its warehouse is an example of an opportunity cost.

Which costs will change with a decrease in activity within the relevant range?

Property taxes on a company's factory building would be classified as a(n):

If the selling price is $18.70 per unit, the contribution margin per unit sold is closest to:

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

The cost of electricity for running production equipment is classified as:

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

A variable cost remains constant if expressed on a unit basis.

For liability insurance, Dizzy pays a set monthly fee plus a small additional amount for every patron entering the park.The cost of liability insurance would best be described as a:

The following costs are all examples of committed fixed costs: depreciation on buildings, salaries of highly trained engineers, real estate taxes, and insurance expenses.

For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units is closest to:

Which of the following is unlikely to be classified as a fixed cost with respect to the number of units produced and sold?

The net operating income computed using the contribution approach for the first quarter is:

Mullennex 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 average fixed manufacturing cost per unit produced is closest to:

The concept of the relevant range does not apply to variable costs.

Administrative costs are indirect costs.

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

To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 26,400 units in a month? (Assume that this sales volume is within the relevant range.)

In making the decision to buy the model 240 machine rather than the model 310 machine, the sunk cost was:

The prime cost for November was:

The amount that a manufacturing company could earn by renting unused portions of its warehouse is an example of an opportunity cost.

Which costs will change with a decrease in activity within the relevant range?

Property taxes on a company's factory building would be classified as a(n):

If the selling price is $18.70 per unit, the contribution margin per unit sold is closest to:

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

The cost of electricity for running production equipment is classified as:

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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