Question 1

When using _______________ a company only assigns variable manufacturing costs to the product.

Accepted Answer

The answer of When using _______________ a company only assigns...

Question 2

The cost of raw materials used is usually a fixed cost.

Accepted Answer

A) True 
 B)False

Question 3

If an automobile manufacturer changes from skilled labor to computer-controlled assembly procedures, the past data

Accepted Answer

A)  are useful in predicting future costs. 
B)  are of little or no value in predicting future costs. 
C)  should be used without adjustments to predict future costs. 
D)  are representative of future costs. 
A)  are useful in predicting future costs. 
B)  are of little or no value in predicting future costs. 
C)  should be used without adjustments to predict future costs. 
D)  are representative of future costs.

Question 4

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

Accepted Answer

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

Question 5

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

Accepted Answer

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

Question 6

Which of the following is never included in product cost?

Accepted Answer

A)  overhead 
B)  direct materials 
C)  variable selling expense 
D)  fixed factory overhead 
E)  direct labor 
A)  overhead 
B)  direct materials 
C)  variable selling expense 
D)  fixed factory overhead 
E)  direct labor

Question 7

Match the type of income statement to the costs it includes.
-Administrative expense

Accepted Answer

A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements 
A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements

Question 8

The method of least squares

Accepted Answer

A)  is a way to find the "best fitting" line through a set of data points. 
B)  is a statistical way of separating a mixed cost. 
C)  always produces the same cost formula when used on the same data set. 
D)  all of these are correct 
A)  is a way to find the "best fitting" line through a set of data points. 
B)  is a statistical way of separating a mixed cost. 
C)  always produces the same cost formula when used on the same data set. 
D)  all of these are correct

Question 9

Select the appropriate item for each of the definitions listed below.
-may be discretionary or committed

Accepted Answer

A) relevant range 
B) cost behavior 
C) driver 
D) variable cost 
E) fixed cost 
A) relevant range 
B) cost behavior 
C) driver 
D) variable cost 
E) fixed cost

Question 10

Botana Company constructed the following formula for monthly utility cost. Total utility cost = $1,200 + ($8.10 × labor hours)
Assume that 775 labor hours are budgeted for the month of April.
 
Calculate the total variable utility cost for the month of April.

Accepted Answer

A)  $1,200.00 
B)  $7,477.50 
C)  $6,277.50 
D)  $5,077.50 
A)  $1,200.00 
B)  $7,477.50 
C)  $6,277.50 
D)  $5,077.50

Question 11

Ramon Company reported the following units of production and sales for June and July: Income under absorption costing for June was $40,000; income under variable costing for July was $50,000.Fixed costs were $600,000 for each month.
 
-  
How much was income for July using absorption costing?

Accepted Answer

A)  $50,000 
B)  $20,000 
C)  $80,000 
D)  $40,000 
A)  $50,000 
B)  $20,000 
C)  $80,000 
D)  $40,000

Question 12

Match the type of income statement to the costs it includes.
-Direct labor for units sold

Accepted Answer

A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements 
A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements

Question 13

Marigold Company makes furniture.The company controller wanted to calculate the fixed and variable costs associated with electricity use in 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 fixed cost of electricity.

Accepted Answer

A)  $3,500 
B)  $5,000 
C)  $2,700 
D)  None of these are correct. 
A)  $3,500 
B)  $5,000 
C)  $2,700 
D)  None of these are correct.

Question 14

The ___________________ income statement groups expenses according to function.

Accepted Answer

The answer of The ___________________ income statement groups expenses according...

Question 15

Match the type of income statement to the costs it includes.
-Fixed factory overhead for the period

Accepted Answer

A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements 
A) Variable costing income statement 
B) Absorption costing income statement 
C) Both types of income statements

Question 16

The following information pertains to Mayberry Corporation: 
  
- Absorption costing income would be ____ variable costing income.

Accepted Answer

A)  $150,000 greater than 
B)  $150,000 less than 
C)  $240,000 less than 
D)  $240,000 greater than 
A)  $150,000 greater than 
B)  $150,000 less than 
C)  $240,000 less than 
D)  $240,000 greater than

Question 17

Pericloud Company had utilities cost of $50,000 at an output level of 10,000 units.The utilities cost was a mixed cost, and the fixed portion was $14,000.What would the estimate of total utilities cost be at an output level of 20,000 units?

Accepted Answer

A)  $25,000 
B)  $45,000 
C)  $86,000 
D)  $105,000 
A)  $25,000 
B)  $45,000 
C)  $86,000 
D)  $105,000

Question 18

Select the appropriate type of cost for each of the definitions below.
-has an increased fixed component at specific intervals

Accepted Answer

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

Question 19

Glascro 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 as follows:

-  Using the high-low method, calculate the fixed cost of leasing.

Accepted Answer

A)  $2,000 
B)  $1,500 
C)  $2,500 
D)  $1,000 
A)  $2,000 
B)  $1,500 
C)  $2,500 
D)  $1,000

Question 20

Matching
Select the appropriate cost behavior for each of the costs listed below.
-indirect materials

Accepted Answer

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

When using _______________ a company only assigns variable manufacturing costs to the product.

The cost of raw materials used is usually a fixed cost.

If an automobile manufacturer changes from skilled labor to computer-controlled assembly procedures, the past data

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

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

Which of the following is never included in product cost?

Match the type of income statement to the costs it includes. -Administrative expense

The method of least squares

Select the appropriate item for each of the definitions listed below. -may be discretionary or committed

Botana Company constructed the following formula for monthly utility cost. Total utility cost = $1,200 + ($8.10 × labor hours) Assume that 775 labor hours are budgeted for the month of April. Calculate the total variable utility cost for the month of April.

Ramon Company reported the following units of production and sales for June and July: Income under absorption costing for June was $40,000; income under variable costing for July was $50,000.Fixed costs were $600,000 for each month. - How much was income for July using absorption costing?

Match the type of income statement to the costs it includes. -Direct labor for units sold

The ___________________ income statement groups expenses according to function.

Match the type of income statement to the costs it includes. -Fixed factory overhead for the period

The following information pertains to Mayberry Corporation: - Absorption costing income would be ____ variable costing income.

Pericloud Company had utilities cost of $50,000 at an output level of 10,000 units.The utilities cost was a mixed cost, and the fixed portion was $14,000.What would the estimate of total utilities cost be at an output level of 20,000 units?

Select the appropriate type of cost for each of the definitions below. -has an increased fixed component at specific intervals

Glascro 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 as follows: - Using the high-low method, calculate the fixed cost of leasing.

Matching Select the appropriate cost behavior for each of the costs listed below. -indirect materials

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

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

When using _______________ a company only assigns variable manufacturing costs to the product.

The cost of raw materials used is usually a fixed cost.

If an automobile manufacturer changes from skilled labor to computer-controlled assembly procedures, the past data

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

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

Which of the following is never included in product cost?

Match the type of income statement to the costs it includes. -Administrative expense

The method of least squares

Select the appropriate item for each of the definitions listed below. -may be discretionary or committed

Botana Company constructed the following formula for monthly utility cost. Total utility cost = $1,200 + ($8.10 × labor hours) Assume that 775 labor hours are budgeted for the month of April. Calculate the total variable utility cost for the month of April.

Ramon Company reported the following units of production and sales for June and July: Income under absorption costing for June was $40,000; income under variable costing for July was $50,000.Fixed costs were $600,000 for each month. - How much was income for July using absorption costing?

Match the type of income statement to the costs it includes. -Direct labor for units sold

The ___________________ income statement groups expenses according to function.

Match the type of income statement to the costs it includes. -Fixed factory overhead for the period

The following information pertains to Mayberry Corporation: - Absorption costing income would be ____ variable costing income.

Pericloud Company had utilities cost of $50,000 at an output level of 10,000 units.The utilities cost was a mixed cost, and the fixed portion was $14,000.What would the estimate of total utilities cost be at an output level of 20,000 units?

Select the appropriate type of cost for each of the definitions below. -has an increased fixed component at specific intervals

Glascro 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 as follows: - Using the high-low method, calculate the fixed cost of leasing.

Matching Select the appropriate cost behavior for each of the costs listed below. -indirect materials

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