Exam 20: Variable Costing for Management Analysis

A business operated at 100% of capacity during its first month and incurred the following costs: ​ If 75 units remain unsold at the end of the month,what is the amount of inventory that would be reported on the absorption costing balance sheet?

Gyro Company manufactures Products T and W and is operating at full capacity.To manufacture Product W requires three times the number of machine hours required for Product T.Market research indicates that 1,000 additional units of Product W could be sold.The contribution margin by unit of product is as follows: ​ Calculate the increase or decrease in total contribution margin if 1,000 additional units of Product W are produced and sold.

It would be acceptable to have the selling price of a product just above the variable costs and expenses of making and selling it in:

In the contribution margin analysis,the effect of a change in the number of units sold,assuming no change in unit sales price or unit cost,is referred to as the:

Under absorption costing,which of the following costs would not be included in finished goods inventory?

Under variable costing,which of the following costs would not be included in finished goods inventory?

A business operated at 100% of capacity during its first month and incurred the following costs: ​ If 1,600 units remain unsold at the end of the month,what is the amount of inventory that would be reported on the variable costing balance sheet?

If sales totaled $200,000 for the current year (10,000 units at $20 each)and planned sales totaled $212,500 (12,500 units at $17 each),the effect of the unit price factor on the change in sales is a:

Management will use both variable and absorption costing in all of the following activities except:

In contribution margin analysis,the quantity factor is computed as the difference between actual quantity sold and the planned quantity sold,multiplied by the planned unit sales price or unit cost.

If variable cost of goods sold totaled $90,000 for the year (18,000 units at $5.00 each)and the planned variable cost of goods sold totaled $86,400 (16,000 units at $5.40 each),the effect of the quantity factor on the change in contribution margin is:

The amount of income under absorption costing will be more than the amount of income under variable costing when units manufactured:

Costs that can be influenced by management at a specific level of management are called:

Under which inventory costing method could increases or decreases in income from operations be misinterpreted to be the result of operating efficiencies or inefficiencies?

A business operated at 100% of capacity during its first month and incurred the following costs: ​ If 1,000 units remain unsold at the end of the month,what is the amount of inventory that would be reported on the absorption costing balance sheet?

Which of the following would be included in the cost of a product manufactured according to absorption costing?

A business operated at 100% of capacity during its first month,with the following results: ​ What is the amount of the manufacturing margin that would be reported on the variable costing income statement?

The level of inventory of a manufactured product has increased by 7,000 units during a period.The following data are also available: ​ What would be the effect on income from operations if absorption costing is used rather than variable costing?

Edna's Chocolates had planned to sell chocolate-covered strawberries for $3.00 each.Due to various factors,the actual price was $2.75.Edna's was able to sell 1,000 more strawberries than the anticipated 4,000.What is (1)the quantity factor and (2)the price factor for sales?

A business operated at 100% of capacity during its first month and incurred the following costs: ​ If 1,000 units remain unsold at the end of the month and sales total $150,000 for the month,what is the amount of the manufacturing margin that would be reported on the absorption costing income statement?