Question 1

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

Accepted Answer

A) $11,600 
B) $2,900 
C) $8,700 
D) $0 
A) $11,600 
B) $2,900 
C) $8,700 
D) $0

Question 2

The IT Corporation produces and markets two types of electronic calculators: Model 11 and Model 12. The following data were gathered on activities last month:   Required:
Prepare a segmented income statement in the contribution format for last month.

Accepted Answer

The answer of The IT Corporation produces and markets two...

Question 3

The segment margin for Product T was:

Accepted Answer

A) $45,000 
B) $85,000 
C) $(10,000) 
D) $80,000 
A) $45,000 
B) $85,000 
C) $(10,000) 
D) $80,000

Question 4

The contribution margin of the West business segment is:

Accepted Answer

A) $456,000 
B) $140,000 
C) $28,000 
D) $676,000 
A) $456,000 
B) $140,000 
C) $28,000 
D) $676,000

Question 5

Nesman Company, which has only one product, has provided the following data concerning its most recent month of operations:   The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
Required:
a. Prepare a contribution format income statement for the month using variable costing.
b. Prepare an income statement for the month using absorption costing.

Accepted Answer

a. Variable costing

Question 6

Under absorption costing, the ending inventory for the year would be valued at:

Accepted Answer

A) $179,500 
B) $213,500 
C) $222,000 
D) $152,000 
A) $179,500 
B) $213,500 
C) $222,000 
D) $152,000

Question 7

Qu 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. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)

Accepted Answer

a. Variable costing unit produ

Question 8

A proposal has been made that will lower variable costs in Store P to 65% of sales. However, this reduction can only be accomplished by a $16,000 increase in Store P's traceable fixed costs. If this proposal is implemented and sales remain constant, overall company net operating income should:

Accepted Answer

A) remain the same 
B) decrease by $2,000 
C) increase by $2,000 
D) increase by $14,000 
A) remain the same 
B) decrease by $2,000 
C) increase by $2,000 
D) increase by $14,000

Question 9

Packer Company, which has only one product, has provided the following data concerning its most recent month of operations:   The company produces the same number of units every month, although the sales in units vary from month to month. The company's variable costs per unit and total fixed costs have been constant from month to month.
Required:
a. What is the unit product cost for the month under variable costing?
b. Prepare a contribution format income statement for the month using variable costing.
c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)

Accepted Answer

a. Variable costing unit produ

Question 10

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 absorption costing?

Accepted Answer

A) $5,300 
B) $3,000 
C) $(12,700) 
D) $8,300 
A) $5,300 
B) $3,000 
C) $(12,700) 
D) $8,300

Question 11

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

Accepted Answer

A) $10,600 
B) $16,200 
C) $6,200 
D) $7,500 
A) $10,600 
B) $16,200 
C) $6,200 
D) $7,500

Question 12

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

Accepted Answer

A) $109 
B) $79 
C) $99 
D) $89 
A) $109 
B) $79 
C) $99 
D) $89

Question 13

The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be:

Accepted Answer

A) $16,000 
B) $10,000 
C) $19,000 
D) $12,000 
A) $16,000 
B) $10,000 
C) $19,000 
D) $12,000

Question 14

Last year, Heidenescher Corporation's variable costing net operating income was $63,600 and its inventory decreased by 600 units. Fixed manufacturing overhead cost was $1 per unit. What was the absorption costing net operating income last year?

Accepted Answer

A) $64,200 
B) $63,000 
C) $63,600 
D) $600 
A) $64,200 
B) $63,000 
C) $63,600 
D) $600

Question 15

Under variable costing, the unit product cost would be:

Accepted Answer

A) $91.00 
B) $72.00 
C) $58.00 
D) $43.00 
A) $91.00 
B) $72.00 
C) $58.00 
D) $43.00

Question 16

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

Accepted Answer

A) $108,000 
B) $28,000 
C) $140,000 
D) $280,000 
A) $108,000 
B) $28,000 
C) $140,000 
D) $280,000

Question 17

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

Accepted Answer

A) $2,900 
B) $0 
C) $8,700 
D) $11,600 
A) $2,900 
B) $0 
C) $8,700 
D) $11,600

Question 18

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

Accepted Answer

A) $8,400 
B) $17,600 
C) $26,000 
D) $22,000 
A) $8,400 
B) $17,600 
C) $26,000 
D) $22,000

Question 19

If Store Q sales increase by $30,000 with no change in fixed expenses, the overall company net operating income should:

Accepted Answer

A) increase by $3,750 
B) increase by $7,500 
C) increase by $12,000 
D) increase by $18,000 
A) increase by $3,750 
B) increase by $7,500 
C) increase by $12,000 
D) increase by $18,000

Question 20

Absorption costing is more compatible with cost-volume-profit analysis than is variable costing.

Accepted Answer

A) True 
 B)False

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

The IT Corporation produces and markets two types of electronic calculators: Model 11 and Model 12. The following data were gathered on activities last month: Required: Prepare a segmented income statement in the contribution format for last month.

The segment margin for Product T was:

The contribution margin of the West business segment is:

Under absorption costing, the ending inventory for the year would be valued at:

A proposal has been made that will lower variable costs in Store P to 65% of sales. However, this reduction can only be accomplished by a $16,000 increase in Store P's traceable fixed costs. If this proposal is implemented and sales remain constant, overall company net operating income should:

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 absorption costing?

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

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

The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be:

Last year, Heidenescher Corporation's variable costing net operating income was $63,600 and its inventory decreased by 600 units. Fixed manufacturing overhead cost was $1 per unit. What was the absorption costing net operating income last year?

Under variable costing, the unit product cost would be:

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

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

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

If Store Q sales increase by $30,000 with no change in fixed expenses, the overall company net operating income should:

Absorption costing is more compatible with cost-volume-profit analysis than is variable costing.

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

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

The IT Corporation produces and markets two types of electronic calculators: Model 11 and Model 12. The following data were gathered on activities last month: Required: Prepare a segmented income statement in the contribution format for last month.

The segment margin for Product T was:

The contribution margin of the West business segment is:

Under absorption costing, the ending inventory for the year would be valued at:

A proposal has been made that will lower variable costs in Store P to 65% of sales. However, this reduction can only be accomplished by a $16,000 increase in Store P's traceable fixed costs. If this proposal is implemented and sales remain constant, overall company net operating income should:

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 absorption costing?

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

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

The carrying value on the balance sheet of the ending finished goods inventory under variable costing would be:

Last year, Heidenescher Corporation's variable costing net operating income was $63,600 and its inventory decreased by 600 units. Fixed manufacturing overhead cost was $1 per unit. What was the absorption costing net operating income last year?

Under variable costing, the unit product cost would be:

A properly constructed segmented income statement in a contribution format would show that the segment margin of the East business segment is:

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

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

If Store Q sales increase by $30,000 with no change in fixed expenses, the overall company net operating income should:

Absorption costing is more compatible with cost-volume-profit analysis than is variable costing.

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