Question 1

A portion of the total fixed manufacturing overhead cost incurred during a period may:

Accepted Answer

A) be excluded from cost of goods sold under absorption costing. 
B) be charged as a period cost with the remainder deferred under variable costing. 
C) never be excluded from cost of goods sold under absorption costing. 
D) never be excluded from cost of goods sold under variable costing. 
A) be excluded from cost of goods sold under absorption costing. 
B) be charged as a period cost with the remainder deferred under variable costing. 
C) never be excluded from cost of goods sold under absorption costing. 
D) never be excluded from cost of goods sold under variable costing.

Question 2

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

Accepted Answer

A) $8,400 
B) $17,600 
C) $26,000 
D) $13,600 
A) $8,400 
B) $17,600 
C) $26,000 
D) $13,600

Question 3

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

Accepted Answer

A) $61 
B) $71 
C) $69 
D) $79 
A) $61 
B) $71 
C) $69 
D) $79

Question 4

If Eagle had sold only 9,000 tables in its first year, what total amount of cost would have been assigned to the 1,000 tables in finished goods inventory under the absorption costing method?

Accepted Answer

A) $37,100 
B) $45,800 
C) $58,000 
D) $74,200 
A) $37,100 
B) $45,800 
C) $58,000 
D) $74,200

Question 5

Net operating income reported under absorption costing will exceed net operating income reported under variable costing for a given period if:

Accepted Answer

A) production equals sales for that period. 
B) production exceeds sales for that period. 
C) sales exceed production for that period. 
D) the variable manufacturing overhead exceeds the fixed manufacturing overhead. 
A) production equals sales for that period. 
B) production exceeds sales for that period. 
C) sales exceed production for that period. 
D) the variable manufacturing overhead exceeds the fixed manufacturing overhead.

Question 6

The unit product cost under variable costing was:

Accepted Answer

A) $33 
B) $32 
C) $72 
D) $40 
A) $33 
B) $32 
C) $72 
D) $40

Question 7

Contribution margin and segment margin mean the same thing.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) $12,000 
B) $8,000 
C) $(27,600) 
D) $4,000 
A) $12,000 
B) $8,000 
C) $(27,600) 
D) $4,000

Question 9

How would Eagle's absorption costing net operating income have been affected in its first year if 12,000 tables were produced instead of 10,000 and Eagle still sold 10,000 tables?

Accepted Answer

A) net operating income would not have been affected 
B) net operating income would have been $27,000 higher 
C) net operating income would have been $31,500 higher 
D) net operating income would have been $116,000 lower 
A) net operating income would not have been affected 
B) net operating income would have been $27,000 higher 
C) net operating income would have been $31,500 higher 
D) net operating income would have been $116,000 lower

Question 10

Which of the following are considered to be product costs under absorption costing? I. Variable manufacturing overhead.
II) Fixed manufacturing overhead.
III) Selling and administrative expenses.

Accepted Answer

A) I, II, and III. 
B) I and II. 
C) I and III. 
D) I. 
A) I, II, and III. 
B) I and II. 
C) I and III. 
D) I.

Question 11

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations:   What is the absorption costing unit product cost for the month?

Accepted Answer

A) $102 
B) $130 
C) $97 
D) $125 
A) $102 
B) $130 
C) $97 
D) $125

Question 12

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

Accepted Answer

A) the division's contribution margin ratio will decrease. 
B) the division's segment margin ratio will remain the same. 
C) the division's segment margin will decrease. 
D) the overall company profit will remain the same. 
A) the division's contribution margin ratio will decrease. 
B) the division's segment margin ratio will remain the same. 
C) the division's segment margin will decrease. 
D) the overall company profit will remain the same.

Question 13

Last year, Salada Corporation's variable costing net operating income was $97,000. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $14,000. What was the absorption costing net operating income last year?

Accepted Answer

A) $14,000 
B) $111,000 
C) $97,000 
D) $83,000 
A) $14,000 
B) $111,000 
C) $97,000 
D) $83,000

Question 14

Camren Corporation has two major business segments-Apparel and Accessories. Data concerning those segments for December appear below:   Common fixed expenses totaled $357,000 and were allocated as follows: $161,000 to the Apparel business segment and $196,000 to the Accessories 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 Camren Corporation has two major business segments-Apparel...

Question 15

Under absorption costing, the unit product cost is:

Accepted Answer

A) $20 
B) $18 
C) $15 
D) $25 
A) $20 
B) $18 
C) $15 
D) $25

Question 16

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

Accepted Answer

A) $156,600 
B) $210,000 
C) $366,600 
D) $307,800 
A) $156,600 
B) $210,000 
C) $366,600 
D) $307,800

Question 17

Assuming that a segment has both variable expenses and traceable fixed expenses, an increase in sales should increase profits by an amount equal to the sales times the segment margin ratio.

Accepted Answer

A) True 
 B)False

Question 18

Colasuonno Corporation has two divisions: the West Division and the East Division. The corporation's net operating income is $88,800. The West Division's divisional segment margin is $39,500 and the East Division's divisional segment margin is $166,900. What is the amount of the common fixed expense not traceable to the individual divisions?

Accepted Answer

A) $255,700 
B) $206,400 
C) $117,600 
D) $128,300 
A) $255,700 
B) $206,400 
C) $117,600 
D) $128,300

Question 19

Segment margin is sales minus:

Accepted Answer

A) variable expenses. 
B) traceable fixed expenses. 
C) variable expenses and common fixed expenses. 
D) variable expenses and traceable fixed expenses. 
A) variable expenses. 
B) traceable fixed expenses. 
C) variable expenses and common fixed expenses. 
D) variable expenses and traceable fixed expenses.

Question 20

What was the absorption costing net operating income this year?

Accepted Answer

A) $91,300 
B) $93,300 
C) $95,900 
D) $88,500 
A) $91,300 
B) $93,300 
C) $95,900 
D) $88,500

A portion of the total fixed manufacturing overhead cost incurred during a period may:

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

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

If Eagle had sold only 9,000 tables in its first year, what total amount of cost would have been assigned to the 1,000 tables in finished goods inventory under the absorption costing method?

Net operating income reported under absorption costing will exceed net operating income reported under variable costing for a given period if:

The unit product cost under variable costing was:

Contribution margin and segment margin mean the same thing.

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

How would Eagle's absorption costing net operating income have been affected in its first year if 12,000 tables were produced instead of 10,000 and Eagle still sold 10,000 tables?

Which of the following are considered to be product costs under absorption costing? I. Variable manufacturing overhead. II) Fixed manufacturing overhead. III) Selling and administrative expenses.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the absorption costing unit product cost for the month?

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

Last year, Salada Corporation's variable costing net operating income was $97,000. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $14,000. What was the absorption costing net operating income last year?

Under absorption costing, the unit product cost is:

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

Assuming that a segment has both variable expenses and traceable fixed expenses, an increase in sales should increase profits by an amount equal to the sales times the segment margin ratio.

Segment margin is sales minus:

What was the absorption costing net operating income this year?

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

A portion of the total fixed manufacturing overhead cost incurred during a period may:

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

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

If Eagle had sold only 9,000 tables in its first year, what total amount of cost would have been assigned to the 1,000 tables in finished goods inventory under the absorption costing method?

Net operating income reported under absorption costing will exceed net operating income reported under variable costing for a given period if:

The unit product cost under variable costing was:

Contribution margin and segment margin mean the same thing.

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

How would Eagle's absorption costing net operating income have been affected in its first year if 12,000 tables were produced instead of 10,000 and Eagle still sold 10,000 tables?

Which of the following are considered to be product costs under absorption costing? I. Variable manufacturing overhead. II) Fixed manufacturing overhead. III) Selling and administrative expenses.

A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations: What is the absorption costing unit product cost for the month?

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

Last year, Salada Corporation's variable costing net operating income was $97,000. Fixed manufacturing overhead costs released from inventory under absorption costing amounted to $14,000. What was the absorption costing net operating income last year?

Under absorption costing, the unit product cost is:

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

Assuming that a segment has both variable expenses and traceable fixed expenses, an increase in sales should increase profits by an amount equal to the sales times the segment margin ratio.

Segment margin is sales minus:

What was the absorption costing net operating income this year?

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