Question 1

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. A

Question 2

Hadlock Company, which has only one product, has provided the following data concerning its most recent month of operations:  
-What is the total period cost for the month under the variable costing approach?

Accepted Answer

A) $125,600 
B) $108,800 
C) $176,800 
D) $68,000 
A) $125,600 
B) $108,800 
C) $176,800 
D) $68,000 C

Question 3

Bertone Inc. ,which produces a single product,has provided the following data for its most recent month of operation:   The company had no beginning or ending inventories.
Required: 
Compute the unit product cost under variable costing.Show your work!

Accepted Answer

The answer of Bertone Inc. ,which produces a single product,has...

Question 4

Krasnow Inc. ,which produces a single product,has provided the following data for its most recent month of operation:   The company had no beginning or ending inventories.
Required:
Compute the unit product cost under absorption costing.Show your work!

Accepted Answer

The answer of Krasnow Inc. ,which produces a single product,has...

Question 5

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 6

Ring, Incorporated's income statement for the most recent month is given below.
  
For each of the following questions, refer back to the original data. 
-Currently the sales clerks receive a salary of $17,000 per month in Store Q.A proposal has been made to change from a fixed salary to a sales commission of 5%.Assume that this proposal is adopted,and that as a result sales in Store Q increase by $40,000.The new segment margin for Store Q should be:

Accepted Answer

A) $47,000 
B) $61,000 
C) $85,000 
D) $44,000 
A) $47,000 
B) $61,000 
C) $85,000 
D) $44,000

Question 7

Clements Company, which has only one product, has provided the following data concerning its most recent month of operations: 
-The total gross margin for the month under the absorption costing approach is:

Accepted Answer

A) $19,500 
B) $51,000 
C) $74,000 
D) $55,500 
A) $19,500 
B) $51,000 
C) $74,000 
D) $55,500

Question 8

Last year,Teneyck Corporation's variable costing net operating income was $63,500 and ending inventory decreased by 200 units.Fixed manufacturing overhead cost per unit was $5.
Required:
Determine the absorption costing net operating income for last year.Show your work!

Accepted Answer

The answer of Last year,Teneyck Corporation's variable costing net operating...

Question 9

Favini Company, which has only one 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) $11,800 
B) $3,700 
C) $8,100 
D) $(23,600) 
A) $11,800 
B) $3,700 
C) $8,100 
D) $(23,600)

Question 10

Cassin Corporation manufactures a variety of products.Last year,the company's variable costing net operating income was $86,300 and ending inventory decreased by 1,700 units.Fixed manufacturing overhead cost per unit was $8.
Required:
Determine the absorption costing net operating income for last year.Show your work!

Accepted Answer

The answer of Cassin Corporation manufactures a variety of products.Last...

Question 11

The salary paid to a store manager is a traceable fixed expense of the store.

Accepted Answer

A) True 
 B)False

Question 12

Galino Company, which has only one product, has provided the following data concerning its most recent month of operations:  
-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 13

In segment reporting,sales dollars is usually an appropriate allocation base for selling,general,and administrative expenses.

Accepted Answer

A) True 
 B)False

Question 14

Salonia 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 last year.Show your work!
b.Determine the absorption costing net operating income this year.Show your work!

Accepted Answer

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

Question 15

The unit product cost under variable costing was:

Accepted Answer

A) $3.20 
B) $3.81 
C) $4.12 
D) $3.51 
A) $3.20 
B) $3.81 
C) $4.12 
D) $3.51

Question 16

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

Accepted Answer

A) $185,000 
B) $117,600 
C) $273,200 
D) $302,600 
A) $185,000 
B) $117,600 
C) $273,200 
D) $302,600

Question 17

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

Question 18

Hadlock Company, which has only one product, has provided the following data concerning its most recent month of operations:  
-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 19

Abe Company, which has only one product, has provided the following data concerning its most recent month of operations:  
-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

Question 20

Krug Corporation manufactures a variety of products. The following data pertain to the company's operations over the last two years:  
-What was the absorption costing net operating income last year?

Accepted Answer

A) $86,200 
B) $89,100 
C) $88,800 
D) $91,400 
A) $86,200 
B) $89,100 
C) $88,800 
D) $91,400

Exam 5: Variable Costing and Segment Reporting: Tools for Management

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

Hadlock Company, which has only one product, has provided the following data concerning its most recent month of operations: -What is the total period cost for the month under the variable costing approach?

Bertone Inc. ,which produces a single product,has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under variable costing.Show your work!

Krasnow Inc. ,which produces a single product,has provided the following data for its most recent month of operation: The company had no beginning or ending inventories. Required: Compute the unit product cost under absorption costing.Show your work!

Clements Company, which has only one product, has provided the following data concerning its most recent month of operations: -The total gross margin for the month under the absorption costing approach is:

Last year,Teneyck Corporation's variable costing net operating income was $63,500 and ending inventory decreased by 200 units.Fixed manufacturing overhead cost per unit was $5. Required: Determine the absorption costing net operating income for last year.Show your work!

Favini Company, which has only one 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?

The salary paid to a store manager is a traceable fixed expense of the store.

Galino Company, which has only one product, has provided the following data concerning its most recent month of operations: -What is the total period cost for the month under the variable costing approach?

In segment reporting,sales dollars is usually an appropriate allocation base for selling,general,and administrative expenses.

The unit product cost under variable costing was:

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

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

Hadlock Company, which has only one product, has provided the following data concerning its most recent month of operations: -What is the unit product cost for the month under variable costing?

Abe Company, which has only one product, has provided the following data concerning its most recent month of operations: -What is the unit product cost for the month under absorption costing?

Krug Corporation manufactures a variety of products. The following data pertain to the company's operations over the last two years: -What was the absorption costing net operating income last year?

Managerial Accounting and Cost Concepts

Job-Order Costing

Process Costing

Cost-Volume-Profit Relationships

Activity-Based Costing: a Tool to Aid Decision Making

Profit Planning

Flexible Budgets and Performance Analysis

Standard Costs and Variances

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Statement of Cash Flows

Financial Statement Analysis

Least-Squares Regression Computations

Appendix B: Cost of Quality

The Predetermined Overhead Rate and Capacity

Further Classification of Labor Costs

Fifo Method

Service Department Allocations

Abc Action Analysis

Using a Modified Form of Activity-Based Costing to Determine Product Costs for External Reports

Predetermined Overhead Rates and Overhead Analysis in a Standard Costing System

Journal Entries to Record Variances

Transfer Pricing

Service Department Charges

The Concept of Present Value

Income Taxes in Capital Budgeting Decisions

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

Pricing Products and Services

Profitability Analysis

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