Question 1

Select the appropriate type of fixed cost for each cost listed below.
-depreciation

Accepted Answer

A) discretionary 
B) committed 
A) discretionary 
B) committed

Question 2

Bailey Company incurred the following costs in manufacturing desk calculators: During the period, the company produced and sold 2,000 units.
 
-  
What is the inventory cost per unit using absorption costing?

Accepted Answer

A)  $104 
B)  $77 
C)  $84 
D)  $32 
A)  $104 
B)  $77 
C)  $84 
D)  $32

Question 3

Select the appropriate type of cost for each of the definitions below.
-remains the same in total within the relevant range

Accepted Answer

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

Question 4

Tecscin Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past five months were collected. ​
  Using a regression program, the value of the X Variable 1 (round the answer to two decimal points) is:

Accepted Answer

A)  $9.08. 
B)  $8.25. 
C)  $7.15. 
D)  $6.32. 
A)  $9.08. 
B)  $8.25. 
C)  $7.15. 
D)  $6.32.

Question 5

Okafor Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected.​ ​
​
  ​
What would Okafor Company's cost formula be to estimate the cost of leasing within the relevant range?

Accepted Answer

A)  total lease cost = $456 + ($38.20 × machine hours) 
B)  total lease cost = $516 + ($38.18 × machine hours) 
C)  total lease cost = $420 + ($37.25 × machine hours) 
D)  none of these are correct 
A)  total lease cost = $456 + ($38.20 × machine hours) 
B)  total lease cost = $516 + ($38.18 × machine hours) 
C)  total lease cost = $420 + ($37.25 × machine hours) 
D)  none of these are correct

Question 6

The high-low method is an objective method to separate the cost behavior of a mixed cost.

Accepted Answer

A) True 
 B)False

Question 7

Mixed costs have both a fixed and a variable component.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is true of absorption costing?

Accepted Answer

A)  It assigns all manufacturing costs to the product. 
B)  It is used only for internal reporting such as financial statements. 
C)  It assigns only variable manufacturing costs to the product. 
D)  None of these. 
A)  It assigns all manufacturing costs to the product. 
B)  It is used only for internal reporting such as financial statements. 
C)  It assigns only variable manufacturing costs to the product. 
D)  None of these.

Question 9

The _____ limits the cost relationship to the range of operations that the firm normally expects to occur.

Accepted Answer

A)  alternate range 
B)  relevant range 
C)  variant range 
D)  dependent range 
A)  alternate range 
B)  relevant range 
C)  variant range 
D)  dependent range

Question 10

Which of the following is the formula used to calculate a mixed cost?

Accepted Answer

A)  Total Cost = Total Fixed Cost + (Fixed Cost Rate × Amount of Output) 
B)  Total Cost = Total Fixed Cost + Total Variable Cost 
C)  Total Cost = Variable Rate × Amount of Output 
D)  None of these are correct. 
A)  Total Cost = Total Fixed Cost + (Fixed Cost Rate × Amount of Output) 
B)  Total Cost = Total Fixed Cost + Total Variable Cost 
C)  Total Cost = Variable Rate × Amount of Output 
D)  None of these are correct.

Question 11

Mixed cost is computed using the formula Total Cost = Fixed Cost + (Variable Rate × Output).The _____ explains changes in the dependent variable of the mixed cost formula.

Accepted Answer

A)  sum of the fixed cost and the variable cost 
B)  difference of the total cost and the fixed cost 
C)  units of output 
D)  variable rate of cost per unit 
A)  sum of the fixed cost and the variable cost 
B)  difference of the total cost and the fixed cost 
C)  units of output 
D)  variable rate of cost per unit

Question 12

Total variable costs = Variable rate × amount of output.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

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

Question 14

Zeklen Company had the following data for the month:  
  Fixed overhead is $2,000 per month; it is applied to production based on normal activity of 1,000 units.During the month, 3,000 units were produced.Zeklen started the month with 200 units in beginning inventory, with unit product cost equal to this month's unit product cost.A total of 1,200 units were sold during the month at price of $10.Selling and administrative expense for the month, all fixed, totaled $2,400.
 
What is the unit product cost under variable costing?

Accepted Answer

A)  $7 
B)  $3 
C)  $9 
D)  $12 
E)  $13 
A)  $7 
B)  $3 
C)  $9 
D)  $12 
E)  $13

Question 15

The following four months of data were collected on utility cost and the number of labor hours in a factory.  
 
- Using the high-low method, compute the variable rate for the utility cost.

Accepted Answer

A)  $1.02 
B)  $2.80 
C)  $1.07 
D)  $2.00 
A)  $1.02 
B)  $2.80 
C)  $1.07 
D)  $2.00

Question 16

PristinDay Company produces handheld calculators.The company controller wanted to calculate the fixed and variable costs associated with the maintenance cost incurred by the factory.Data for the past four months were collected as follows:

Coefficients shown by a regression program are as follows:

Using the results of regression, calculate the budgeted cost for maintenance next month assuming that 200 machine hours are budgeted.(Round the answer to the nearest dollar.)

Accepted Answer

A)  $3,000 
B)  $2,700 
C)  $1,200 
D)  $4,225 
A)  $3,000 
B)  $2,700 
C)  $1,200 
D)  $4,225

Question 17

A fixed cost that management can easily decide to increase or decrease is known as a _________________.

Accepted Answer

discretion

Question 18

Select the appropriate type of fixed cost for each cost listed below.
-salary of receptionist

Accepted Answer

A) discretionary 
B) committed 
A) discretionary 
B) committed

Question 19

Tecscin Company manufactures motorcycles.The company's management accountant wants to calculate the fixed and variable costs associated with utility cost incurred by the factory.Data for the past five months were collected as follows: ​
​
  Using a regression program, the value of the intercept (rounded to the nearest whole number) is calculated as:

Accepted Answer

A)  $1,289. 
B)  $3,256. 
C)  $2,113. 
D)  $1,900. 
A)  $1,289. 
B)  $3,256. 
C)  $2,113. 
D)  $1,900.

Question 20

A variable cost increases in total when output increases but the per-unit costs remains the same.

Accepted Answer

A) True 
 B)False

Select the appropriate type of fixed cost for each cost listed below. -depreciation

Bailey Company incurred the following costs in manufacturing desk calculators: During the period, the company produced and sold 2,000 units. - What is the inventory cost per unit using absorption costing?

Select the appropriate type of cost for each of the definitions below. -remains the same in total within the relevant range

Okafor Company manufactures skis.The management accountant wants to calculate the fixed and variable costs associated with the leasing of machinery.Data for the past four months were collected. What would Okafor Company's cost formula be to estimate the cost of leasing within the relevant range?

The high-low method is an objective method to separate the cost behavior of a mixed cost.

Mixed costs have both a fixed and a variable component.

Which of the following is true of absorption costing?

The _____ limits the cost relationship to the range of operations that the firm normally expects to occur.

Which of the following is the formula used to calculate a mixed cost?

Mixed cost is computed using the formula Total Cost = Fixed Cost + (Variable Rate × Output).The _____ explains changes in the dependent variable of the mixed cost formula.

Total variable costs = Variable rate × amount of output.

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

The following four months of data were collected on utility cost and the number of labor hours in a factory. - Using the high-low method, compute the variable rate for the utility cost.

A fixed cost that management can easily decide to increase or decrease is known as a _________________.

Select the appropriate type of fixed cost for each cost listed below. -salary of receptionist

A variable cost increases in total when output increases but the per-unit costs remains the same.

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

Select the appropriate type of fixed cost for each cost listed below. -depreciation

Bailey Company incurred the following costs in manufacturing desk calculators: During the period, the company produced and sold 2,000 units. - What is the inventory cost per unit using absorption costing?

Select the appropriate type of cost for each of the definitions below. -remains the same in total within the relevant range

The high-low method is an objective method to separate the cost behavior of a mixed cost.

Mixed costs have both a fixed and a variable component.

Which of the following is true of absorption costing?

The _____ limits the cost relationship to the range of operations that the firm normally expects to occur.

Which of the following is the formula used to calculate a mixed cost?

Mixed cost is computed using the formula Total Cost = Fixed Cost + (Variable Rate × Output).The _____ explains changes in the dependent variable of the mixed cost formula.

Total variable costs = Variable rate × amount of output.

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

The following four months of data were collected on utility cost and the number of labor hours in a factory. - Using the high-low method, compute the variable rate for the utility cost.

A fixed cost that management can easily decide to increase or decrease is known as a _________________.

Select the appropriate type of fixed cost for each cost listed below. -salary of receptionist

A variable cost increases in total when output increases but the per-unit costs remains the same.

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