Grip Manufacturing currently produces 1,000 tires per month.The following per unit data for 1,000 tires apply for sales to regular customers: \[\begin{array} { l r } \text { Direct materials } & \$ 30 \\ \text { Direct manufacturing labor } & 5 \\ \text { Variable manufacturing overhead } & 8 \\ \text { Fiæed manufacturing overhead } & \underline { 12 } \\ \text { Total manufacturing costs } & \underline { \$ 55 } \end{array}\] The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires.What is the total cost of producing 2,000 tires?

A) $110,000 B) $98,000 C) $68,000 D) $88,000 A) $110,000 B) $98,000 C) $68,000 D) $88,000

Answer the following questions using the information below: Pederson Company reported the following: $\begin{array}{ll} \text { Manufacturing costs } & \$ 150,000 \\ \text { Units manufactured } & 5,000 \\ \text { Units sold } & 4,700 \text { units sold for } \$ 75 \text { per unit } \\ \text { Beginning inventory } & 100 \text { units } \end{array}$ -What is the average manufacturing cost per unit?

A) $40.00 B) $42.00 C) $30.00 D) $32.00 A) $40.00 B) $42.00 C) $30.00 D) $32.00

Answer the following questions using the information below: $\begin{array}{lr} \text { Beginuing finished goods, 1/1/2015 } & \$ 92,000 \\ \text { Ending finished goods, 12/31/2015 } & 75,000 \\ \text { Cost of goods sold } & 300,000 \\ \text { Sales revenue } & 450,000 \\ \text { Operating expenses } & 95,000 \end{array}$ -What is the gross margin for 2015?

A) $163,000 B) $177,000 C) $170,000 D) $167,000 A) $163,000 B) $177,000 C) $170,000 D) $167,000

Exam 2: An Introduction to Cost Terms and Purposes

In the manufacturing plant,Alex is paid $40 an hour for straight-time and $60 an hour for overtime.One week she worked 54 hours,which included 8 hours of overtime,and 6 hours of idle time caused by material shortages. Required: a.What is Alex's total compensation for the week? b.What amount of compensation would be reported as direct manufacturing labor? c.What amount of compensation would be reported as manufacturing overhead?

(Essay)

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Question 101

Department stores,such as Target,are examples of a merchandising company.

(True/False)

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Question 102

Target reports ________.

(Multiple Choice)

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Question 103

What are the factors that affect the classification of a cost as direct or indirect?

(Essay)

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Question 104

When making strategic decisions about which products and how much to produce,managers must need to distinguish fixed costs from variable costs.

(True/False)

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Question 105

A cost driver is a variable,such as the level of activity or volume that causally affects costs over a given time span.

(True/False)

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Question 106

Grip Manufacturing currently produces 1,000 tires per month.The following per unit data for 1,000 tires apply for sales to regular customers: Direct materials \ 30 Direct manufacturing labor 5 Variable manufacturing overhead 8 Fiæed manufacturing overhead Total manufacturing costs The plant has capacity for 3,000 tires and is considering expanding production to 2,000 tires.What is the total cost of producing 2,000 tires?

(Multiple Choice)

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Question 107

Maize Plastics manufactures and sells 50 bottles per day.Fixed costs are $30,000 and the variable costs for manufacturing 50 bottles are $10,000.Each bottle is sold for $1,000.How would the daily profit be affected if the daily volume of sales drop by 10%?

(Multiple Choice)

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Question 108

In making product mix and pricing decisions,managers should focus on ________.

(Multiple Choice)

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Question 109

Period costs ________.

(Multiple Choice)

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Question 110

________ are the acquisition costs of all materials that eventually become part of the cost object and can be traced to the cost object.

(Multiple Choice)

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Question 111

Improvements in information-gathering technologies are making it possible to trace more costs as direct.

(True/False)

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Question 112

Which of the following statements is true?

(Multiple Choice)

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Question 113

Idle time wages consists of the wages paid to all workers (for both direct labor and indirect labor)in excess of their straight-time wage rates.

(True/False)

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Question 114

All costs reported on the income statement of a service-sector company are inventoriable costs.

(True/False)

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Question 115

Answer the following questions using the information below: Pederson Company reported the following: Manufacturing costs \ 150,000 Units manufactured 5,000 Units sold 4,700 units sold for \ 75 per unit Beginning inventory 100 units -What is the average manufacturing cost per unit?

(Multiple Choice)

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Question 116

Because costs that are inventoried are not expensed until the units associated with them are sold,a manager can produce more units than are expected to be sold in a period without reducing a firm's net income.

(True/False)

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Question 117

Answer the following questions using the information below: Beginuing finished goods, 1/1/2015 \ 92,000 Ending finished goods, 12/31/2015 75,000 Cost of goods sold 300,000 Sales revenue 450,000 Operating expenses 95,000 -What is the gross margin for 2015?

(Multiple Choice)

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Question 118

Direct materials inventory would normally include ________.

(Multiple Choice)

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Question 119

Wood used to manufacture chairs is considered a direct variable cost.

(True/False)

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Question 120

Showing 101 - 120 of 224

Exam 2: An Introduction to Cost Terms and Purposes

Department stores,such as Target,are examples of a merchandising company.

Target reports ________.

What are the factors that affect the classification of a cost as direct or indirect?

When making strategic decisions about which products and how much to produce,managers must need to distinguish fixed costs from variable costs.

A cost driver is a variable,such as the level of activity or volume that causally affects costs over a given time span.

Maize Plastics manufactures and sells 50 bottles per day.Fixed costs are $30,000 and the variable costs for manufacturing 50 bottles are $10,000.Each bottle is sold for $1,000.How would the daily profit be affected if the daily volume of sales drop by 10%?

In making product mix and pricing decisions,managers should focus on ________.

Period costs ________.

________ are the acquisition costs of all materials that eventually become part of the cost object and can be traced to the cost object.

Improvements in information-gathering technologies are making it possible to trace more costs as direct.

Which of the following statements is true?

Idle time wages consists of the wages paid to all workers (for both direct labor and indirect labor)in excess of their straight-time wage rates.

All costs reported on the income statement of a service-sector company are inventoriable costs.

Answer the following questions using the information below: Pederson Company reported the following: Manufacturing costs \ 150,000 Units manufactured 5,000 Units sold 4,700 units sold for \ 75 per unit Beginning inventory 100 units -What is the average manufacturing cost per unit?

Because costs that are inventoried are not expensed until the units associated with them are sold,a manager can produce more units than are expected to be sold in a period without reducing a firm's net income.

Answer the following questions using the information below: Beginuing finished goods, 1/1/2015 \ 92,000 Ending finished goods, 12/31/2015 75,000 Cost of goods sold 300,000 Sales revenue 450,000 Operating expenses 95,000 -What is the gross margin for 2015?

Direct materials inventory would normally include ________.

Wood used to manufacture chairs is considered a direct variable cost.

The Manager and Management Accounting

Cost-Volume-Profit Analysis

Job Costing

Activity-Based Costing and Activity-Based Management

Master Budget and Responsibility Accounting

Flexible Budgets, direct-Cost Variances, and Management Control

Flexible Budgets, overhead Cost Variances, and Management Control

Inventory Costing and Capacity Analysis

Determining How Costs Behave

Decision Making and Relevant Information

Strategy, balanced Scorecard, and Strategic Profitability Analysis

Pricing Decisions and Cost Management

Cost Allocation, customer-Profitability Analysis, and Sales-Variance Analysis

Allocation of Support-Department Costs, common Costs, and Revenues

Cost Allocation: Joint Products and Byproducts

Process Costing

Spoilage, rework, and Scrap

Balanced Scorecard: Quality and Time

Inventory Management, just-In-Time, and Simplified Costing Methods

Capital Budgeting and Cost Analysis

Management Control Systems, transfer Pricing, and Multinational Considerations

Performance Measurement, compensation, and Multinational Considerations

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