Question 1

Which of the following would be considered a committed fixed cost?

Accepted Answer

A) Research and Development 
B) Depreciation 
C) Office holiday party 
D) Advertising 
A) Research and Development 
B) Depreciation 
C) Office holiday party 
D) Advertising

Question 2

In the equation y = $9.90x + $120,014,"y" represents:

Accepted Answer

A) total fixed costs. 
B) variable costs/unit. 
C) total overhead costs. 
D) none of the above. 
A) total fixed costs. 
B) variable costs/unit. 
C) total overhead costs. 
D) none of the above.

Question 3

Bryon Catering produces box lunches,which it sells for $20 each.During the current month,Seattle produced 2,800 meals,but only sold 2,700 meals.The variable cost per meal was $12 and the sales commissions per meal were $1.Total fixed manufacturing costs were $1,400 and total fixed marketing and administrative costs were $1,200.What is the product cost per meal under absorption costing?

Accepted Answer

A) $14.00 
B) $12.50 
C) $20.50 
D) $12.00 
A) $14.00 
B) $12.50 
C) $20.50 
D) $12.00

Question 4

Which of the following is a fixed cost?

Accepted Answer

A) Direct materials cost 
B) Direct labor cost 
C) Sales commissions expense 
D) Straight-line depreciation expense 
A) Direct materials cost 
B) Direct labor cost 
C) Sales commissions expense 
D) Straight-line depreciation expense

Question 5

At Raines Company,total fixed and variable costs are $480,000 at a production level of 140,000 units.The company has total fixed costs of $200,000.The fixed cost per unit at a production level of 200,000 units is:

Accepted Answer

A) $3.43. 
B) $2.40. 
C) $1.00. 
D) $1.43. 
A) $3.43. 
B) $2.40. 
C) $1.00. 
D) $1.43.

Question 6

Preston Racquets manufactures tennis racquets.The following data are available for last month. $$\begin{array} { | l | r | } 
\hline \text { Units in bepinging inventory } & 0 \
\hline \text { Units produced during year } & 1,200 \text { racquets } \
\hline \text { Units in ending inventory } & \text { 200 racquets } \
\hline \text { Sales comrissions per racquet } & \$ 10.00 \
\hline \text { Fixed manufacturing coverhead } & \$ 48,000 \
\hline \text { Fixed marketing expenses } & \$ 12,000 \
\hline \text { Selling price per racquet } & \$ 200 \
\hline \text { Variable manufacturing cost per racquet } & \$ 110 \
\hline
\end{array}$$
- Using absorption costing,what is cost of goods available for sale for last month?

Accepted Answer

A) $180,000 
B) $150,000 
C) $200,000 
D) $ 48,000 
A) $180,000 
B) $150,000 
C) $200,000 
D) $ 48,000

Which of the following would be considered a committed fixed cost?

In the equation y = $9.90x + $120,014,"y" represents:

Which of the following is a fixed cost?

At Raines Company,total fixed and variable costs are $480,000 at a production level of 140,000 units.The company has total fixed costs of $200,000.The fixed cost per unit at a production level of 200,000 units is:

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost-Volume-Profit Analysis

Short Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 6: Cost Behavior

Which of the following would be considered a committed fixed cost?

In the equation y = $9.90x + $120,014,"y" represents:

Which of the following is a fixed cost?

At Raines Company,total fixed and variable costs are $480,000 at a production level of 140,000 units.The company has total fixed costs of $200,000.The fixed cost per unit at a production level of 200,000 units is:

Introduction to Managerial Accounting

Building Blocks of Managerial Accounting

Job Costing

Activity-Based Costing, lean Production, and the Costs of Quality

Process Costing

Cost-Volume-Profit Analysis

Short Term Business Decisions

The Master Budget and Responsibility Accounting

Flexible Budgets and Standard Costs

Performance Evaluation and the Balanced Scorecard

Capital Investment Decisions and the Time Value of Money

Statement of Cash Flows

Financial Statement Analysis

Filters