Question 1

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

Accepted Answer

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

Question 2

Which of the following is true of discretionary fixed costs?

Accepted Answer

A)  They are used to calculate contribution margin. 
B)  They depend on the number of units produced. 
C)  They can be changed easily by management's decision. 
D)  They increase as output increases. 
A)  They are used to calculate contribution margin. 
B)  They depend on the number of units produced. 
C)  They can be changed easily by management's decision. 
D)  They increase as output increases.

Question 3

For internal reporting ________________ is an important managerial tool because it provides vital cost information for decision making and control.

Accepted Answer

The answer of For internal reporting ________________ is an important...

Question 4

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer.
-cost of transporting cars to dealerships

Accepted Answer

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

Question 5

If the number of units produced in a period is smaller than the number of units sold in period, absorption costing income will be higher than variable costing income.

Accepted Answer

A) True 
 B)False

Question 6

As output increases variable cost per unit will also increase.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A)  $360,000 
B)  $280,000 
C)  $220,000 
D)  $380,000 
A)  $360,000 
B)  $280,000 
C)  $220,000 
D)  $380,000

Question 8

Margola Company produces hand-held 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. ​
​
  ​
Coefficients shown by a regression program are:
Intercept 1,150
X Variable 1 9.06
​
Using the results of regression, the cost formula for maintenance cost was:

Accepted Answer

A)  $1,150 × machine hours. 
B)  ($4,686 − $3,956) / (386 − 310). 
C)  $9.06 × machine hours. 
D)  $1,150 + ($9.06 × machine hours). 
A)  $1,150 × machine hours. 
B)  ($4,686 − $3,956) / (386 − 310). 
C)  $9.06 × machine hours. 
D)  $1,150 + ($9.06 × machine hours).

Question 9

Which of the following would not be an example of a fixed cost?

Accepted Answer

A)  The electricity bill paid for production 
B)  The rent paid for a warehouse 
C)  The depreciation on a factory building 
D)  The property taxes paid on real estate. 
A)  The electricity bill paid for production 
B)  The rent paid for a warehouse 
C)  The depreciation on a factory building 
D)  The property taxes paid on real estate.

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.
 
If Botana Company incurs 9,600 labor hours for the year, what would be the estimate of total utility cost?

Accepted Answer

A)  $76,560 
B)  $78,960 
C)  $92,160 
D)  none of these are correct 
A)  $76,560 
B)  $78,960 
C)  $92,160 
D)  none of these are correct

Question 11

Select the appropriate cost behavior for each of the costs listed below.
-sales commissions

Accepted Answer

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

Question 12

Cost relationships may change at output levels outside of the relevant range.

Accepted Answer

A) True 
 B)False

Question 13

A type of cost behavior where the true total cost function is increasing at a decreasing rate is called ______________.

Accepted Answer

The answer of A type of cost behavior where the...

Question 14

The _______________ income statement groups expenses according to cost behavior.

Accepted Answer

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

Question 15

Which of the following types of costs is a product cost for absorption costing but a period cost for variable costing?

Accepted Answer

A)  direct materials 
B)  direct labor 
C)  fixed factory overhead per unit sold 
D)  variable selling expense 
E)  total administrative expense 
A)  direct materials 
B)  direct labor 
C)  fixed factory overhead per unit sold 
D)  variable selling expense 
E)  total administrative expense

Question 16

Select the appropriate item for each of the definitions listed below.
-it corresponds to the fixed cost

Accepted Answer

A) dependent variable 
B) independent variable 
C) intercept 
D) slope 
A) dependent variable 
B) independent variable 
C) intercept 
D) slope

Question 17

Brona Company makes treadmills.The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory.Data for the past four months were as follows: 
 
  Using the high-low method, calculate the fixed cost of the janitorial services.

Accepted Answer

A)  $3,000 
B)  $6,000 
C)  $5,230 
D)  None of these are correct. 
A)  $3,000 
B)  $6,000 
C)  $5,230 
D)  None of these are correct.

Question 18

Which of the following is true of a mixed cost?

Accepted Answer

A)  It remains constant irrespective of changes in output. 
B)  It consists of only one cost component. 
C)  It has the same cost behavior as a step cost. 
D)  It decreases when output decreases. 
A)  It remains constant irrespective of changes in output. 
B)  It consists of only one cost component. 
C)  It has the same cost behavior as a step cost. 
D)  It decreases when output decreases.

Question 19

Matching
Select the appropriate cost behavior for each of the costs listed below.
-factory insurance

Accepted Answer

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

Question 20

Select the appropriate cost behavior for each of the costs listed below.
-real estate taxes

Accepted Answer

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

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

Which of the following is true of discretionary fixed costs?

For internal reporting ________________ is an important managerial tool because it provides vital cost information for decision making and control.

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of transporting cars to dealerships

If the number of units produced in a period is smaller than the number of units sold in period, absorption costing income will be higher than variable costing income.

As output increases variable cost per unit will also increase.

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

Which of the following would not be an example of a fixed cost?

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. If Botana Company incurs 9,600 labor hours for the year, what would be the estimate of total utility cost?

Select the appropriate cost behavior for each of the costs listed below. -sales commissions

Cost relationships may change at output levels outside of the relevant range.

A type of cost behavior where the true total cost function is increasing at a decreasing rate is called ______________.

The _______________ income statement groups expenses according to cost behavior.

Which of the following types of costs is a product cost for absorption costing but a period cost for variable costing?

Select the appropriate item for each of the definitions listed below. -it corresponds to the fixed cost

Brona Company makes treadmills.The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory.Data for the past four months were as follows: Using the high-low method, calculate the fixed cost of the janitorial services.

Which of the following is true of a mixed cost?

Matching Select the appropriate cost behavior for each of the costs listed below. -factory insurance

Select the appropriate cost behavior for each of the costs listed below. -real estate taxes

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. -advertising

Which of the following is true of discretionary fixed costs?

For internal reporting ________________ is an important managerial tool because it provides vital cost information for decision making and control.

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of transporting cars to dealerships

If the number of units produced in a period is smaller than the number of units sold in period, absorption costing income will be higher than variable costing income.

As output increases variable cost per unit will also increase.

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

Which of the following would not be an example of a fixed cost?

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. If Botana Company incurs 9,600 labor hours for the year, what would be the estimate of total utility cost?

Select the appropriate cost behavior for each of the costs listed below. -sales commissions

Cost relationships may change at output levels outside of the relevant range.

A type of cost behavior where the true total cost function is increasing at a decreasing rate is called ______________.

The _______________ income statement groups expenses according to cost behavior.

Which of the following types of costs is a product cost for absorption costing but a period cost for variable costing?

Select the appropriate item for each of the definitions listed below. -it corresponds to the fixed cost

Brona Company makes treadmills.The company controller wants to calculate the fixed and variable costs associated with the janitorial costs incurred in the factory.Data for the past four months were as follows: Using the high-low method, calculate the fixed cost of the janitorial services.

Which of the following is true of a mixed cost?

Matching Select the appropriate cost behavior for each of the costs listed below. -factory insurance

Select the appropriate cost behavior for each of the costs listed below. -real estate taxes

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