Question 1

Committed fixed costs represent organizational investments with a one-year planning horizon.

Accepted Answer

A) True 
 B)False

Question 2

The relevant range concept is applicable to mixed costs.

Accepted Answer

A) True 
 B)False

Question 3

If Lonnie were to sell 50,000 units, the total expected cost per unit would be:

Accepted Answer

A) $2.20 
B) $2.30 
C) $2.50 
D) $2.00 
A) $2.20 
B) $2.30 
C) $2.50 
D) $2.00

Question 4

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

Accepted Answer

A) $13,500 
B) $18,000 
C) $12,000 
D) $15,000 
A) $13,500 
B) $18,000 
C) $12,000 
D) $15,000

Question 5

What is the total of the direct costs above?

Accepted Answer

A) $65,000 
B) $112,000 
C) $155,000 
D) $202,000 
A) $65,000 
B) $112,000 
C) $155,000 
D) $202,000

Question 6

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

Accepted Answer

A) $8,000 
B) $11,750 
C) $9,750 
D) $3,750 
A) $8,000 
B) $11,750 
C) $9,750 
D) $3,750

Question 7

If 10,000 units are produced, the total amount of fixed manufacturing cost incurred is closest to:

Accepted Answer

A) $128,250 
B) $121,500 
C) $148,500 
D) $135,000 
A) $128,250 
B) $121,500 
C) $148,500 
D) $135,000

Question 8

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

Accepted Answer

A) $4,200 
B) $10,400 
C) $14,600 
D) $12,000 
A) $4,200 
B) $10,400 
C) $14,600 
D) $12,000

Question 9

The conversion cost for November was:

Accepted Answer

A) $116,000 
B) $79,000 
C) $87,000 
D) $129,000 
A) $116,000 
B) $79,000 
C) $87,000 
D) $129,000

Question 10

In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was:

Accepted Answer

A) $348,000 
B) $340,000 
C) $360,000 
D) $411,000 
A) $348,000 
B) $340,000 
C) $360,000 
D) $411,000

Question 11

For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

Accepted Answer

A) $81,000 
B) $188,550 
C) $107,550 
D) $197,550 
A) $81,000 
B) $188,550 
C) $107,550 
D) $197,550

Question 12

If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Accepted Answer

A) $21,000 
B) $14,000 
C) $28,000 
D) $17,500 
A) $21,000 
B) $14,000 
C) $28,000 
D) $17,500

Question 13

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

Accepted Answer

A) $16.55 
B) $11.60 
C) $12.65 
D) $14.60 
A) $16.55 
B) $11.60 
C) $12.65 
D) $14.60

Question 14

The term that refers to costs incurred in the past that are not relevant to a decision is:

Accepted Answer

A) marginal cost. 
B) indirect cost. 
C) period cost. 
D) sunk cost. 
A) marginal cost. 
B) indirect cost. 
C) period cost. 
D) sunk cost.

Question 15

If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to:

Accepted Answer

A) $9.00 
B) $16.00 
C) $11.55 
D) $13.00 
A) $9.00 
B) $16.00 
C) $11.55 
D) $13.00

Question 16

The potential benefit that is given up when one alternative is selected over another is called a sunk cost.

Accepted Answer

A) True 
 B)False

Question 17

Learned Corporation has provided the following information:   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 $22.40 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 costs incurred?

Accepted Answer

a. @#IMG-DLM&_TB2627_00 b. @#IMG-DLM&_TB

Question 18

If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Accepted Answer

A) $73,200 
B) $69,300 
C) $86,400 
D) $63,300 
A) $73,200 
B) $69,300 
C) $86,400 
D) $63,300

Question 19

In April, Holderness Inc, a merchandising company, had sales of $221,000, selling expenses of $14,000, and administrative expenses of $25,000.The cost of merchandise purchased during the month was $155,000.The beginning balance in the merchandise inventory account was $34,000 and the ending balance was $48,000.
Required:
Prepare a traditional format income statement for April.

Accepted Answer

@#IMG-DLM&_TB2627_00 *Cost of goods sold

Question 20

Landmann Corporation's relevant range of activity is 7,000 units to 11,000 units.When it produces and sells 9,000 units, its average costs per unit are as follows:        For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

Accepted Answer

A) $106,200 
B) $236,700 
C) $121,500 
D) $227,700 
A) $106,200 
B) $236,700 
C) $121,500 
D) $227,700

Committed fixed costs represent organizational investments with a one-year planning horizon.

The relevant range concept is applicable to mixed costs.

If Lonnie were to sell 50,000 units, the total expected cost per unit would be:

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

What is the total of the direct costs above?

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

If 10,000 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:

The conversion cost for November was:

In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was:

For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

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

The term that refers to costs incurred in the past that are not relevant to a decision is:

If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to:

The potential benefit that is given up when one alternative is selected over another is called a sunk cost.

If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Landmann Corporation's relevant range of activity is 7,000 units to 11,000 units.When it produces and sells 9,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

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

Exam 1: Managerial Accounting and Cost Concepts

Committed fixed costs represent organizational investments with a one-year planning horizon.

The relevant range concept is applicable to mixed costs.

If Lonnie were to sell 50,000 units, the total expected cost per unit would be:

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

What is the total of the direct costs above?

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

If 10,000 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:

The conversion cost for November was:

In making the decision to buy the model 220 machine rather than the model 370 machine, the sunk cost was:

For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

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

The term that refers to costs incurred in the past that are not relevant to a decision is:

If the selling price is $25.00 per unit, the contribution margin per unit sold is closest to:

The potential benefit that is given up when one alternative is selected over another is called a sunk cost.

If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Landmann Corporation's relevant range of activity is 7,000 units to 11,000 units.When it produces and sells 9,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of product costs incurred to make 9,000 units is closest to:

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