Question 1

A direct cost is a cost that cannot be easily traced to the particular cost object under consideration.

Accepted Answer

A) True 
 B)False

Question 2

Selling costs can be either direct or indirect costs.

Accepted Answer

A) True 
 B)False

Question 3

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product:   The best estimate of the total variable manufacturing cost per unit is:

Accepted Answer

A) $39.10 
B) $27.70 
C) $11.40 
D) $13.20 
A) $39.10 
B) $27.70 
C) $11.40 
D) $13.20

Question 4

Nieman Inc. , a local retailer, has provided the following data for the month of March:   The cost of goods sold for March was:

Accepted Answer

A) $146, 000 
B) $150, 000 
C) $142, 000 
D) $237, 000 
A) $146, 000 
B) $150, 000 
C) $142, 000 
D) $237, 000

Question 5

Krimton Corporation's manufacturing costs last year consisted of $150, 000 of direct materials, $200, 000 of direct labor, $40, 000 of variable manufacturing overhead, and $25, 000 of fixed manufacturing overhead. Prime cost was:

Accepted Answer

A) $150, 000 
B) $190, 000 
C) $350, 000 
D) $415, 000 
A) $150, 000 
B) $190, 000 
C) $350, 000 
D) $415, 000

Question 6

Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service (UPS).Which two terms below describe the cost of shipping these wreaths?

Accepted Answer

A) variable cost and product cost 
B) variable cost and period cost 
C) fixed cost and product cost 
D) fixed cost and period cost 
A) variable cost and product cost 
B) variable cost and period cost 
C) fixed cost and product cost 
D) fixed cost and period cost

Question 7

Calip Corporation, a merchandising company, reported the following results for October:   The contribution margin for October is:

Accepted Answer

A) $260, 000 
B) $232, 000 
C) $196, 500 
D) $369, 500 
A) $260, 000 
B) $232, 000 
C) $196, 500 
D) $369, 500

Question 8

Ence Sales, Inc. , a merchandising company, reported sales of 6, 400 units in April at a selling price of $684 per unit.Cost of goods sold, which is a variable cost, was $455 per unit.Variable selling expenses were $30 per unit and variable administrative expenses were $40 per unit.The total fixed selling expenses were $156, 800 and the total administrative expenses were $260, 400. The contribution margin for April was:

Accepted Answer

A) $1, 017, 600 
B) $1, 465, 600 
C) $600, 400 
D) $3, 512, 400 
A) $1, 017, 600 
B) $1, 465, 600 
C) $600, 400 
D) $3, 512, 400

Question 9

Management of Lewallen Corporation has asked your help as an intern in preparing some key reports for September.Direct materials cost was $57, 000, direct labor cost was $43, 000, and manufacturing overhead was $71, 000.Selling expense was $15, 000 and administrative expense was $32, 000. The prime cost for September was:

Accepted Answer

A) $114, 000 
B) $100, 000 
C) $103, 000 
D) $47, 000 
A) $114, 000 
B) $100, 000 
C) $103, 000 
D) $47, 000

Question 10

Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume.The company produces a single product.   The best estimate of the total monthly fixed manufacturing cost is:

Accepted Answer

A) $388, 000 
B) $954, 800 
C) $376, 000 
D) $328, 000 
A) $388, 000 
B) $954, 800 
C) $376, 000 
D) $328, 000

Question 11

At an activity level of 8, 800 units, Pember Corporation's total variable cost is $146, 520 and its total fixed cost is $219, 296.
Required:
For the activity level of 8, 900 units, compute: (a)the total variable cost; (b)the total fixed cost; (c)the total cost; (d)the average variable cost per unit; (e)the average fixed cost per unit;and (f)the average total cost per unit.Assume that this activity level is within the relevant range.

Accepted Answer

Variable cost = $146

Question 12

Searls Corporation, a merchandising company, reported the following results for July:   Cost of goods sold is a variable cost in this company. The gross margin for July is:

Accepted Answer

A) $1, 618, 100 
B) $699, 300 
C) $359, 900 
D) $534, 600 
A) $1, 618, 100 
B) $699, 300 
C) $359, 900 
D) $534, 600

Question 13

Frank Company operates a cafeteria for its employees.The number of meals served each week over the last seven weeks, along with the total costs of operating the cafeteria are given below:   Assume that the relevant range includes all of the activity levels mentioned in this problem. Assume that the cafeteria expects to serve 1, 850 meals during Week 8.Using the high-low method, the expected total cost of the cafeteria would be:

Accepted Answer

A) $5, 340 
B) $5, 180 
C) $5, 300 
D) $4, 375 
A) $5, 340 
B) $5, 180 
C) $5, 300 
D) $4, 375

Question 14

Depreciation on office equipment would be included in product costs.

Accepted Answer

A) True 
 B)False

Question 15

Comparative income statements for Tudor Retailing Company for the last two months are presented below:   Which of the following classifications best describes the behavior of shipping expense?

Accepted Answer

A) Mixed 
B) Variable 
C) Fixed 
D) none of the above 
A) Mixed 
B) Variable 
C) Fixed 
D) none of the above

Question 16

Nieman Inc. , a local retailer, has provided the following data for the month of March:   The net operating income for March was:

Accepted Answer

A) $130, 000 
B) $134, 000 
C) $43, 000 
D) $47, 000 
A) $130, 000 
B) $134, 000 
C) $43, 000 
D) $47, 000

Question 17

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product:   The best estimate of the total cost to manufacture 1, 200 units is closest to:

Accepted Answer

A) $68, 520 
B) $100, 920 
C) $111, 720 
D) $90, 120 
A) $68, 520 
B) $100, 920 
C) $111, 720 
D) $90, 120

Question 18

Data concerning Nelson Company's activity for the first six months of the year appear below:   Using the high-low method of analysis, the estimated monthly fixed component of the electrical cost is:

Accepted Answer

A) $1, 520 
B) $440 
C) $260 
D) $560 
A) $1, 520 
B) $440 
C) $260 
D) $560

Question 19

Eddy Corporation has provided the following production and total cost data for two levels of monthly production volume.The company produces a single product.   The best estimate of the total variable manufacturing cost per unit is:

Accepted Answer

A) $22.90 
B) $119.80 
C) $142.70 
D) $97.10 
A) $22.90 
B) $119.80 
C) $142.70 
D) $97.10

Question 20

Data for Cost A and Cost B appear below:   Which of the above best describes the behavior of Costs A and B?

Accepted Answer

A) Cost A is fixed, Cost B is variable. 
B) Cost A is variable, Cost B is fixed. 
C) Both Cost A and Cost B are variable. 
D) Both Cost A and Cost B are fixed. 
A) Cost A is fixed, Cost B is variable. 
B) Cost A is variable, Cost B is fixed. 
C) Both Cost A and Cost B are variable. 
D) Both Cost A and Cost B are fixed.

A direct cost is a cost that cannot be easily traced to the particular cost object under consideration.

Selling costs can be either direct or indirect costs.

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The best estimate of the total variable manufacturing cost per unit is:

Nieman Inc. , a local retailer, has provided the following data for the month of March: The cost of goods sold for March was:

Krimton Corporation's manufacturing costs last year consisted of $150, 000 of direct materials, $200, 000 of direct labor, $40, 000 of variable manufacturing overhead, and $25, 000 of fixed manufacturing overhead. Prime cost was:

Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service (UPS).Which two terms below describe the cost of shipping these wreaths?

Calip Corporation, a merchandising company, reported the following results for October: The contribution margin for October is:

Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume.The company produces a single product. The best estimate of the total monthly fixed manufacturing cost is:

Searls Corporation, a merchandising company, reported the following results for July: Cost of goods sold is a variable cost in this company. The gross margin for July is:

Depreciation on office equipment would be included in product costs.

Comparative income statements for Tudor Retailing Company for the last two months are presented below: Which of the following classifications best describes the behavior of shipping expense?

Nieman Inc. , a local retailer, has provided the following data for the month of March: The net operating income for March was:

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The best estimate of the total cost to manufacture 1, 200 units is closest to:

Data concerning Nelson Company's activity for the first six months of the year appear below: Using the high-low method of analysis, the estimated monthly fixed component of the electrical cost is:

Eddy Corporation has provided the following production and total cost data for two levels of monthly production volume.The company produces a single product. The best estimate of the total variable manufacturing cost per unit is:

Data for Cost A and Cost B appear below: Which of the above best describes the behavior of Costs A and B?

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

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

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Pricing Products and Services

Profitability Analysis

Least Squares Regression Computations

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Abc Action Analysis

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters

Exam 1: Managerial Accounting and Cost Concepts

A direct cost is a cost that cannot be easily traced to the particular cost object under consideration.

Selling costs can be either direct or indirect costs.

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The best estimate of the total variable manufacturing cost per unit is:

Nieman Inc. , a local retailer, has provided the following data for the month of March: The cost of goods sold for March was:

Krimton Corporation's manufacturing costs last year consisted of $150, 000 of direct materials, $200, 000 of direct labor, $40, 000 of variable manufacturing overhead, and $25, 000 of fixed manufacturing overhead. Prime cost was:

Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service (UPS).Which two terms below describe the cost of shipping these wreaths?

Calip Corporation, a merchandising company, reported the following results for October: The contribution margin for October is:

Anderson Corporation has provided the following production and average cost data for two levels of monthly production volume.The company produces a single product. The best estimate of the total monthly fixed manufacturing cost is:

Searls Corporation, a merchandising company, reported the following results for July: Cost of goods sold is a variable cost in this company. The gross margin for July is:

Depreciation on office equipment would be included in product costs.

Comparative income statements for Tudor Retailing Company for the last two months are presented below: Which of the following classifications best describes the behavior of shipping expense?

Nieman Inc. , a local retailer, has provided the following data for the month of March: The net operating income for March was:

The following production and average cost data for two levels of monthly production volume have been supplied by a company that produces a single product: The best estimate of the total cost to manufacture 1, 200 units is closest to:

Data concerning Nelson Company's activity for the first six months of the year appear below: Using the high-low method of analysis, the estimated monthly fixed component of the electrical cost is:

Eddy Corporation has provided the following production and total cost data for two levels of monthly production volume.The company produces a single product. The best estimate of the total variable manufacturing cost per unit is:

Data for Cost A and Cost B appear below: Which of the above best describes the behavior of Costs A and B?

Cost-Volume-Profit Relationships

Job-Order Costing

Variable Costing and Segment Reporting: Tools for Management

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

Differential Analysis: the Key to Decision Making

Capital Budgeting Decisions

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Pricing Products and Services

Profitability Analysis

Least Squares Regression Computations

Activity-Based Absorption Costing

the Predetermined Overhead Rate and Capacity

Super-Variable Costing

Abc Action Analysis

the Concept of Present Value

Income Taxes and the Net Present Value Method

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Transfer Pricing

Service Department Charges

Filters