Question 1

Product costs are recorded as expenses in the period in which the related products are sold.

Accepted Answer

A) True 
 B)False

Question 2

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. Using the high-low method of analysis,the variable cost per meal served in the cafeteria would be estimated to be:

Accepted Answer

A) $1.50 
B) $2.00 
C) $2.80 
D) $1.00 
A) $1.50 
B) $2.00 
C) $2.80 
D) $1.00

Question 3

Hadrana Corporation reports that at an activity level of 5,500 units,its total variable cost is $275,330 and its total fixed cost is $86,240. What would be the total variable cost at an activity level of 5,600 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $275,330 
B) $361,570 
C) $87,808 
D) $280,336 
A) $275,330 
B) $361,570 
C) $87,808 
D) $280,336

Question 4

Corcetti Company manufactures and sells prewashed denim jeans.Large rolls of denim cloth are purchased and are first washed in a giant washing machine.After the cloth is dried,it is cut up into jean pattern shapes and then sewn together.The completed jeans are sold to various retail chains. Which of the following terms could be used to correctly describe the cost of the soap used to wash the denim cloth?

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

Question 5

Farnor,Inc. ,would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last four months of operations.   Using the high-low method of analysis,the estimated fixed cost per month for electricity is closest to:

Accepted Answer

A) $53.46 
B) $0.00 
C) $3.40 
D) $48.00 
A) $53.46 
B) $0.00 
C) $3.40 
D) $48.00

Question 6

Abbott Company's manufacturing overhead is 20% of its total conversion costs.If direct labor is $38,000 and if direct materials are $23,000,the manufacturing overhead is:

Accepted Answer

A) $9,500 
B) $152,000 
C) $5,750 
D) $15,250 
A) $9,500 
B) $152,000 
C) $5,750 
D) $15,250

Product costs are recorded as expenses in the period in which the related products are sold.

Hadrana Corporation reports that at an activity level of 5,500 units,its total variable cost is $275,330 and its total fixed cost is $86,240. What would be the total variable cost at an activity level of 5,600 units? Assume that this level of activity is within the relevant range.

Farnor,Inc. ,would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last four months of operations. Using the high-low method of analysis,the estimated fixed cost per month for electricity is closest to:

Abbott Company's manufacturing overhead is 20% of its total conversion costs.If direct labor is $38,000 and if direct materials are $23,000,the manufacturing overhead is:

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variance

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters

Exam 1: Managerial Accounting and Cost Concepts

Product costs are recorded as expenses in the period in which the related products are sold.

Hadrana Corporation reports that at an activity level of 5,500 units,its total variable cost is $275,330 and its total fixed cost is $86,240. What would be the total variable cost at an activity level of 5,600 units? Assume that this level of activity is within the relevant range.

Farnor,Inc. ,would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last four months of operations. Using the high-low method of analysis,the estimated fixed cost per month for electricity is closest to:

Abbott Company's manufacturing overhead is 20% of its total conversion costs.If direct labor is $38,000 and if direct materials are $23,000,the manufacturing overhead is:

Job-Order Costing: Calculating Unit Production Costs

Job-Order Costing: Cost Flows and External Reporting

Process Costing

Supplement: Process Costing Using the Fifo Method

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Activity-Based Costing: a Tool to Aid Decision Making

Master Budgeting

Flexible Budgets and Performance Analysis

Differential Analysis: The Key to Decision Making

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variance

The Concept of Present Value

The Direct Method of Determining the Net Cash Provided by Operating Activities

Filters