Question 1

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 2

Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity.

Accepted Answer

A) True 
 B)False

Question 3

A traditional format income statement organizes costs on the basis of behavior.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following costs, if expressed on a per unit basis, would be expected to decrease as the level of production and sales increases?

Accepted Answer

A) Sales commissions. 
B) Fixed manufacturing overhead. 
C) Variable manufacturing overhead. 
D) Direct materials. 
A) Sales commissions. 
B) Fixed manufacturing overhead. 
C) Variable manufacturing overhead. 
D) Direct materials.

Question 5

Assuming Comco uses the high-low method of analysis, if machine hours are budgeted to be 20,000 hours then the budgeted total maintenance cost would be expected to be:

Accepted Answer

A) $25,400 
B) $25,560 
C) $23,700 
D) $24,720 
A) $25,400 
B) $25,560 
C) $23,700 
D) $24,720

Question 6

In making the decision to buy the model 230 machine rather than the model 380 machine, the sunk cost was:

Accepted Answer

A) $305,000 
B) $266,000 
C) $278,000 
D) $207,000 
A) $305,000 
B) $266,000 
C) $278,000 
D) $207,000

Question 7

Shaw Supply Company sells a single product and has the following average costs at a sales level of 15,000 units:   Required:
Determine the following amounts at a sales level of 18,000 units:
a. Total variable cost
b. Total fixed cost
c. Variable cost per unit
d. Fixed cost per unit
e. Total cost per unit

Accepted Answer

Total fixed cost = $4.75 per unit × 15,0

Question 8

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Accepted Answer

A) $83,000 
B) $94,000 
C) $90,000 
D) $127,000 
A) $83,000 
B) $94,000 
C) $90,000 
D) $127,000

Question 9

Using the high-low method, the estimate of the fixed component of office expense per month is closest to:

Accepted Answer

A) $9,606 
B) $13,485 
C) $13,181 
D) $13,793 
A) $9,606 
B) $13,485 
C) $13,181 
D) $13,793

Question 10

All of the following would be classified as product costs except:

Accepted Answer

A) property taxes on production equipment. 
B) insurance on factory machinery. 
C) salaries of the marketing staff. 
D) wages of machine operators. 
A) property taxes on production equipment. 
B) insurance on factory machinery. 
C) salaries of the marketing staff. 
D) wages of machine operators.

The net operating income for March was:

Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity.

A traditional format income statement organizes costs on the basis of behavior.

Which of the following costs, if expressed on a per unit basis, would be expected to decrease as the level of production and sales increases?

Assuming Comco uses the high-low method of analysis, if machine hours are budgeted to be 20,000 hours then the budgeted total maintenance cost would be expected to be:

In making the decision to buy the model 230 machine rather than the model 380 machine, the sunk cost was:

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Using the high-low method, the estimate of the fixed component of office expense per month is closest to:

All of the following would be classified as product costs except:

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters

Exam 1: Managerial Accounting and Cost Concepts

The net operating income for March was:

Cost behavior is considered linear whenever a straight line is a reasonable approximation for the relation between cost and activity.

A traditional format income statement organizes costs on the basis of behavior.

Which of the following costs, if expressed on a per unit basis, would be expected to decrease as the level of production and sales increases?

Assuming Comco uses the high-low method of analysis, if machine hours are budgeted to be 20,000 hours then the budgeted total maintenance cost would be expected to be:

In making the decision to buy the model 230 machine rather than the model 380 machine, the sunk cost was:

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

Using the high-low method, the estimate of the fixed component of office expense per month is closest to:

All of the following would be classified as product costs except:

Least-Squares Regression Computations

Cost of Quality

Job-Order Costing

Activity-Based Absorption Costing

The Predetermined Overhead Rate and Capacity

Process Costing

Fifo Method

Service Department Allocations

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Super-Variable Costing

Activity-Based Costing: a Tool to Aid Decision Making

Abc Action Analysis

Filters