Question 1

Which of the following costing methods charges all the manufacturing costs to the products?

Accepted Answer

A) variable costing 
B) direct costing 
C) absorption costing 
D) contribution costing 
A) variable costing 
B) direct costing 
C) absorption costing 
D) contribution costing

Question 2

Aqua Primavera,Inc.has provided the following information for the year. $$\begin{array} { | l | r | l | } 
\hline \text { Units produced } & 11,000 & \text { units } \
\hline \text { Sales price } & \$ 500 & \text { per unit } \
\hline \text { Direct materials } & \$ 45 & \text { per unit } \
\hline \text { Direct labor } & \$ 30 & \text { per unit } \
\hline \text { Variable manufacturing overhead } & \$ 55 & \text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 480,000 & \text { per year } \
\hline \text { Variable selling and administration costs } & \$ 75 & \text { per unit } \
\hline \text { Fixed selling and administration costs } & \$ 300,000 & \text { per year } \
\hline
\end{array}$$ What is the unit product cost using variable costing?

Accepted Answer

A) $75 
B) $85 
C) $130 
D) $174 
A) $75 
B) $85 
C) $130 
D) $174

Question 3

For decisions that affect production planning,consider the following decision focuses.State the appropriate costing method and the reason for your answer.
 $$\begin{array} { | l | c | l | } 
\hline \begin{array} { c } 
\textbf { Decision } \
\textbf { Focus }
\end{array} & \begin{array} { c } 
\textbf { Appropriate Costing } \
\textbf { Method }
\end{array} & \textbf { Reason } \
\hline \textbf { Short run } & & \
\hline \textbf { Long run } & & \
\hline
\end{array}$$

Accepted Answer

\[\begin{array} { | c | l | l | } 
\hlin

Question 4

When determining the product costs for long-term production planning,________.

Accepted Answer

A) the research and development cost of the product should be ignored 
B) variable costing is more appropriate 
C) absorption costing is more appropriate 
D) the selling and administrative expenses should be ignored 
A) the research and development cost of the product should be ignored 
B) variable costing is more appropriate 
C) absorption costing is more appropriate 
D) the selling and administrative expenses should be ignored

Question 5

Mackenzie,Inc.has collected the following data.(There are no beginning inventories.) $\begin{array}{|l|r|l|}
\hline \text { Units produced } & 700& \text { units } \
\hline \text { Sales price } & { \$130}&\text { per unit } \
\hline \text { Direct materials } & \$ 30 &\text { per unit } \
\hline \text { Direct labor } & { \$12}& \text{ per unit } \
\hline \text { Variable manufacturing overhead } & { \$10}&\text { per unit } \
\hline \text { Fixed manufacturing overhead } & \$ 17,400 &\text { per year } \
\hline \text { Variable selling and administrative costs } & \$ 5& \text { per unit } \
\hline \text { Fixed selling and administrative cost } & \$19,700& \text { per year } \
\hline
\end{array}$ What is the ending balance in Finished Goods Inventory using absorption costing if 400 units are sold? (Round any intermediate calculations to the nearest cent,and your final answer to the nearest dollar.)

Accepted Answer

A) $7457 
B) $15,600 
C) $33,001 
D) $23,058 
A) $7457 
B) $15,600 
C) $33,001 
D) $23,058

Question 6

Variable costing prepares the income statement using the traditional format.

Accepted Answer

A) True 
 B)False

Question 7

A business segment is an identifiable part of the company for which financial information is available.

Accepted Answer

A) True 
 B)False

Question 8

Fixed manufacturing overhead is considered a product cost under variable costing.

Accepted Answer

A) True 
 B)False

Which of the following costing methods charges all the manufacturing costs to the products?

For decisions that affect production planning,consider the following decision focuses.State the appropriate costing method and the reason for your answer. Decision Focus Appropriate Costing Method Reason Short run Long run

When determining the product costs for long-term production planning,________.

Variable costing prepares the income statement using the traditional format.

A business segment is an identifiable part of the company for which financial information is available.

Fixed manufacturing overhead is considered a product cost under variable costing.

Accounting Information Systems

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters

Exam 21: Variable Costing

Which of the following costing methods charges all the manufacturing costs to the products?

For decisions that affect production planning,consider the following decision focuses.State the appropriate costing method and the reason for your answer. Decision Focus Appropriate Costing Method Reason Short run Long run

When determining the product costs for long-term production planning,________.

Variable costing prepares the income statement using the traditional format.

A business segment is an identifiable part of the company for which financial information is available.

Fixed manufacturing overhead is considered a product cost under variable costing.

Accounting Information Systems

Introduction to Managerial Accounting

Job Order Costing

Process Costing

Cost Management Systems: Activity-Based, just-In-Time, and Quality Management Systems

Cost-Volume-Profit Analysis

Master Budgets

Flexible Budgets and Standard Cost Systems

Responsibility Accounting and Performance Evaluation

Short-Term Business Decisions

Capital Investment Decisions

Filters