Question 1

The slope of a mixed cost line is equal to the fixed element of the cost.

Accepted Answer

A) True 
 B)False  False

Question 2

Cost of advertising is an example of a _____.

Accepted Answer

A)  discretionary fixed cost 
B)  variable cost 
C)  semi-variable cost 
D)  committed fixed cost 
A)  discretionary fixed cost 
B)  variable cost 
C)  semi-variable cost 
D)  committed fixed cost A

Question 3

Total Cost = Fixed Cost + (Variable Rate × Output).In the cost formula, the slope corresponds to the _____.

Accepted Answer

A)  dependent rate 
B)  output rate 
C)  conversion rate 
D)  variable rate 
A)  dependent rate 
B)  output rate 
C)  conversion rate 
D)  variable rate D

Question 4

If production volume increases from 15,000 units to 21,000 units, _____.

Accepted Answer

A)  average costs will increase by 30% 
B)  total fixed costs will increase by 25% 
C)  total variable costs will increase by 40% 
D)  mixed and variable costs will increase by 55% 
A)  average costs will increase by 30% 
B)  total fixed costs will increase by 25% 
C)  total variable costs will increase by 40% 
D)  mixed and variable costs will increase by 55%

Question 5

Which of the following would probably be a discretionary fixed cost for a law firm?

Accepted Answer

A)  salary of receptionist 
B)  advertising 
C)  depreciation on furniture and equipment 
D)  cost of legal forms 
A)  salary of receptionist 
B)  advertising 
C)  depreciation on furniture and equipment 
D)  cost of legal forms

Question 6

The fixed cost per unit _____ within the relevant range when the output decreases.

Accepted Answer

A)  decreases 
B)  decreases at first and then increases 
C)  remains the same 
D)  increases 
A)  decreases 
B)  decreases at first and then increases 
C)  remains the same 
D)  increases

Question 7

Steele Corporation has the following information for January, February, and March: Production costs per unit (based on 10,000 units) are as follows:
  There were no beginning inventories for January, and all units were sold for $50.Costs are stable over the three months.
   
-
What is the January ending inventory for Steele Corporation using the variable costing method?

Accepted Answer

A)  $260,000 
B)  $78,000 
C)  $108,000 
D)  $90,000 
A)  $260,000 
B)  $78,000 
C)  $108,000 
D)  $90,000

Question 8

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer.
-cost of windshields

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 9

Total cost = Fixed cost + (Variable Rate × Output) In the cost formula above which element would be the dependent variable?

Accepted Answer

A)  variable rate 
B)  fixed cost 
C)  total cost 
D)  output 
A)  variable rate 
B)  fixed cost 
C)  total cost 
D)  output

Question 10

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer.
-cost of inspections

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 11

Select the appropriate item for each of the definitions listed below.
-may involve a long-term contract

Accepted Answer

A) committed fixed cost 
B) discretionary fixed cost 
C) mixed cost 
D) step cost 
A) committed fixed cost 
B) discretionary fixed cost 
C) mixed cost 
D) step cost

Question 12

Which of the following would probably be a mixed cost?

Accepted Answer

A)  rent on building 
B)  raw materials 
C)  repairs and maintenance 
D)  depreciation 
A)  rent on building 
B)  raw materials 
C)  repairs and maintenance 
D)  depreciation

Question 13

A discretionary fixed cost can be changed relatively easily at management discretion.

Accepted Answer

A) True 
 B)False

Question 14

Depreciation on equipment is an example of a _____.

Accepted Answer

A)  variable cost 
B)  mixed cost 
C)  fixed cost 
D)  step cost 
A)  variable cost 
B)  mixed cost 
C)  fixed cost 
D)  step cost

Question 15

Inventory under absorption costing includes only direct materials and direct labor.

Accepted Answer

A) True 
 B)False

Question 16

Select the appropriate type of cost for each of the definitions below.
-will increase in total in direct proportion to an increase in the cost driver

Accepted Answer

A) variable 
B) fixed 
C) mixed 
D) step 
A) variable 
B) fixed 
C) mixed 
D) step

Question 17

Sanders Company has the following information for last year  
There were no beginning inventories.
 
- 
What is the cost of ending inventory for Sanders using the variable costing method?

Accepted Answer

A)  $300,000 
B)  $280,000 
C)  $120,000 
D)  $260,000 
A)  $300,000 
B)  $280,000 
C)  $120,000 
D)  $260,000

Question 18

___________________ are costs that in total vary in direct proportion to changes in output within the relevant range.

Accepted Answer

The answer of ___________________ are costs that in total vary...

Question 19

The ________________________ is a variable whose value depends on the value of another variable.

Accepted Answer

The answer of The ________________________ is a variable whose value...

Question 20

A cost __________ is a casual factor that measures the output of the activity that leads costs to change.

Accepted Answer

The answer of A cost __________ is a casual factor...

The slope of a mixed cost line is equal to the fixed element of the cost.

Cost of advertising is an example of a _____.

Total Cost = Fixed Cost + (Variable Rate × Output).In the cost formula, the slope corresponds to the _____.

If production volume increases from 15,000 units to 21,000 units, _____.

Which of the following would probably be a discretionary fixed cost for a law firm?

The fixed cost per unit _____ within the relevant range when the output decreases.

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of windshields

Total cost = Fixed cost + (Variable Rate × Output) In the cost formula above which element would be the dependent variable?

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of inspections

Select the appropriate item for each of the definitions listed below. -may involve a long-term contract

Which of the following would probably be a mixed cost?

A discretionary fixed cost can be changed relatively easily at management discretion.

Depreciation on equipment is an example of a _____.

Inventory under absorption costing includes only direct materials and direct labor.

Select the appropriate type of cost for each of the definitions below. -will increase in total in direct proportion to an increase in the cost driver

Sanders Company has the following information for last year There were no beginning inventories. - What is the cost of ending inventory for Sanders using the variable costing method?

___________________ are costs that in total vary in direct proportion to changes in output within the relevant range.

The ________________________ is a variable whose value depends on the value of another variable.

A cost __________ is a casual factor that measures the output of the activity that leads costs to change.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 3: Cost Behavior, Cost Forecasting, and Segmented Income Statements

The slope of a mixed cost line is equal to the fixed element of the cost.

Cost of advertising is an example of a _____.

Total Cost = Fixed Cost + (Variable Rate × Output).In the cost formula, the slope corresponds to the _____.

If production volume increases from 15,000 units to 21,000 units, _____.

Which of the following would probably be a discretionary fixed cost for a law firm?

The fixed cost per unit _____ within the relevant range when the output decreases.

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of windshields

Total cost = Fixed cost + (Variable Rate × Output) In the cost formula above which element would be the dependent variable?

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of inspections

Select the appropriate item for each of the definitions listed below. -may involve a long-term contract

Which of the following would probably be a mixed cost?

A discretionary fixed cost can be changed relatively easily at management discretion.

Depreciation on equipment is an example of a _____.

Inventory under absorption costing includes only direct materials and direct labor.

Select the appropriate type of cost for each of the definitions below. -will increase in total in direct proportion to an increase in the cost driver

Sanders Company has the following information for last year There were no beginning inventories. - What is the cost of ending inventory for Sanders using the variable costing method?

___________________ are costs that in total vary in direct proportion to changes in output within the relevant range.

The ________________________ is a variable whose value depends on the value of another variable.

A cost __________ is a casual factor that measures the output of the activity that leads costs to change.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters