Question 1

Only those costs that would disappear over time if a segment were eliminated should be considered traceable costs of the segment.

Accepted Answer

A) True 
 B)False  True

Question 2

What is the unit product cost for the month under absorption costing?

Accepted Answer

A) $88 
B) $99 
C) $81 
D) $106 
A) $88 
B) $99 
C) $81 
D) $106 B

Question 3

Would the following costs be classified as product or period costs under variable costing at a retail clothing store?

Accepted Answer

A) Option A 
B) Option B 
C) Option C 
D) Option D 
A) Option A 
B) Option B 
C) Option C 
D) Option D D

Question 4

Maga Company, which has only one product, has provided the following data concerning its most recent month of operations:   Required:
a. What is the unit product cost for the month under variable costing?
b. What is the unit product cost for the month under absorption costing?
c. Prepare a contribution format income statement for the month using variable costing.
d. Prepare an income statement for the month using absorption costing.
e. Reconcile the variable costing and absorption costing net operating incomes for the month.

Accepted Answer

a. & b. Unit product

Question 5

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:   What is the net operating income for the month under variable costing?

Accepted Answer

A) $21,600 
B) $(15,200) 
C) $8,000 
D) $13,600 
A) $21,600 
B) $(15,200) 
C) $8,000 
D) $13,600

Question 6

During April, Division D of Carney Company had a segment margin ratio of 15%, a variable expense ratio of 60% of sales, and traceable fixed expenses of $15,000. Division D's sales were closest to:

Accepted Answer

A) $100,000 
B) $60,000 
C) $33,333 
D) $22,500 
A) $100,000 
B) $60,000 
C) $33,333 
D) $22,500

Question 7

Gore Corporation has two divisions: the Business Products Division and the Export Products Division. The Business Products Division's divisional segment margin is $55,700 and the Export Products Division's divisional segment margin is $70,600. The total amount of common fixed expenses not traceable to the individual divisions is $107,400. What is the company's net operating income?

Accepted Answer

A) $233,700 
B) $(126,300) 
C) $126,300 
D) $18,900 
A) $233,700 
B) $(126,300) 
C) $126,300 
D) $18,900

Question 8

What was the absorption costing net operating income last year?

Accepted Answer

A) $60,000 
B) $23,000 
C) $97,000 
D) $89,000 
A) $60,000 
B) $23,000 
C) $97,000 
D) $89,000

Question 9

Hansen Company produces a single product. During the last year, Hansen had net operating income under absorption costing that was $5,500 lower than its income under variable costing. The company sold 9,000 units during the year, and its variable costs were $10 per unit, of which $6 was variable selling expense. If fixed production cost is $5 per unit under absorption costing every year, then how many units did the company produce during the year?

Accepted Answer

A) 7,625 units 
B) 8,450 units 
C) 10,100 units 
D) 7,900 units 
A) 7,625 units 
B) 8,450 units 
C) 10,100 units 
D) 7,900 units

Question 10

What is the net operating income for the month under absorption costing?

Accepted Answer

A) $1,400 
B) $(19,000) 
C) $8,800 
D) $10,200 
A) $1,400 
B) $(19,000) 
C) $8,800 
D) $10,200

Question 11

What is the unit product cost for the month under absorption costing?

Accepted Answer

A) $83 
B) $92 
C) $86 
D) $77 
A) $83 
B) $92 
C) $86 
D) $77

Question 12

All other things equal, if a division's traceable fixed expenses decrease:

Accepted Answer

A) the division's segment margin will increase. 
B) the overall company net operating income will decrease. 
C) the division's contribution margin will increase. 
D) the division's sales volume will increase. 
A) the division's segment margin will increase. 
B) the overall company net operating income will decrease. 
C) the division's contribution margin will increase. 
D) the division's sales volume will increase.

Question 13

What is the net operating income for the month under variable costing?

Accepted Answer

A) $11,400 
B) $16,800 
C) $5,400 
D) $(12,900) 
A) $11,400 
B) $16,800 
C) $5,400 
D) $(12,900)

Question 14

Data for May concerning Dorow Corporation's two major business segments-Fibers and Feedstocks-appear below:   Common fixed expenses totaled $345,000 and were allocated as follows: $186,000 to the Fibers business segment and $159,000 to the Feedstocks business segment.
Required:
Prepare a segmented income statement in the contribution format for the company. Omit percentages; show only dollar amounts.

Accepted Answer

The answer of Data for May concerning Dorow Corporation's two...

Question 15

What is the total period cost for the month under the variable costing approach?

Accepted Answer

A) $31,200 
B) $104,400 
C) $117,400 
D) $135,600 
A) $31,200 
B) $104,400 
C) $117,400 
D) $135,600

Question 16

The contribution margin of the Commercial business segment is:

Accepted Answer

A) $769,000 
B) $272,000 
C) $313,000 
D) $86,000 
A) $769,000 
B) $272,000 
C) $313,000 
D) $86,000

Question 17

Carvey Corporation manufactures a variety of products. The following data pertain to the company's operations over the last two years:   Required:
a. Determine the absorption costing net operating income for last year. Show your work!
b. Determine the absorption costing net operating income for this year. Show your work!

Accepted Answer

The answer of Carvey Corporation manufactures a variety of products....

Question 18

The product line segment margin for Product A for June was:

Accepted Answer

A) $200,000 
B) $80,000 
C) $65,000 
D) $10,000 
A) $200,000 
B) $80,000 
C) $65,000 
D) $10,000

Question 19

What is the unit product cost for the month under variable costing?

Accepted Answer

A) $62 
B) $58 
C) $91 
D) $87 
A) $62 
B) $58 
C) $91 
D) $87

Question 20

A segment is any portion or activity of an organization about which a manager seeks revenue, cost, or profit data.

Accepted Answer

A) True 
 B)False

Only those costs that would disappear over time if a segment were eliminated should be considered traceable costs of the segment.

What is the unit product cost for the month under absorption costing?

Would the following costs be classified as product or period costs under variable costing at a retail clothing store?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing?

During April, Division D of Carney Company had a segment margin ratio of 15%, a variable expense ratio of 60% of sales, and traceable fixed expenses of $15,000. Division D's sales were closest to:

What was the absorption costing net operating income last year?

What is the net operating income for the month under absorption costing?

What is the unit product cost for the month under absorption costing?

All other things equal, if a division's traceable fixed expenses decrease:

What is the net operating income for the month under variable costing?

What is the total period cost for the month under the variable costing approach?

The contribution margin of the Commercial business segment is:

The product line segment margin for Product A for June was:

What is the unit product cost for the month under variable costing?

A segment is any portion or activity of an organization about which a manager seeks revenue, cost, or profit data.

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters

Exam 4: Variable Costing and Segment Reporting: Tools for Management

Only those costs that would disappear over time if a segment were eliminated should be considered traceable costs of the segment.

What is the unit product cost for the month under absorption costing?

Would the following costs be classified as product or period costs under variable costing at a retail clothing store?

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the net operating income for the month under variable costing?

During April, Division D of Carney Company had a segment margin ratio of 15%, a variable expense ratio of 60% of sales, and traceable fixed expenses of $15,000. Division D's sales were closest to:

What was the absorption costing net operating income last year?

What is the net operating income for the month under absorption costing?

What is the unit product cost for the month under absorption costing?

All other things equal, if a division's traceable fixed expenses decrease:

What is the net operating income for the month under variable costing?

What is the total period cost for the month under the variable costing approach?

The contribution margin of the Commercial business segment is:

The product line segment margin for Product A for June was:

What is the unit product cost for the month under variable costing?

A segment is any portion or activity of an organization about which a manager seeks revenue, cost, or profit data.

Managerial Accounting and Cost Concepts

Cost-Volume-Profit Relationships

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Managerial Accounting and Cost Concepts

Job-Order Costing

Activity-Based-Costing: a Tool to Aid Decision Making

A Capital Budgeting Decisions

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Performance Measurement in Decentralized Organizations

Profitability Analysis

Pricing Products and Services

Filters