Question 1

The best estimate of the total monthly fixed cost is:

Accepted Answer

A) $692,200 
B) $725,400 
C) $659,000 
D) $327,000 
A) $692,200 
B) $725,400 
C) $659,000 
D) $327,000

Question 2

If the Tudor Retailing Company uses the high-low method of analysis, the total selling and administrative expense if Tudor Retailing Company sells 6,500 units during a month would be estimated to be:

Accepted Answer

A) $37,000 
B) $44,850 
C) $38,250 
D) $36,679 
A) $37,000 
B) $44,850 
C) $38,250 
D) $36,679

Question 3

The nursing station on the fourth floor of Central Hospital is responsible for the care of orthopedic surgery patients. The costs of prescription drugs administered by the nursing station to patients should be classified as:

Accepted Answer

A) direct patient costs. 
B) indirect patient costs. 
C) overhead costs of the nursing station. 
D) period costs of the hospital. 
A) direct patient costs. 
B) indirect patient costs. 
C) overhead costs of the nursing station. 
D) period costs of the hospital.

Question 4

The total of the product costs listed above for December is:

Accepted Answer

A) $340,000 
B) $82,000 
C) $647,000 
D) $307,000 
A) $340,000 
B) $82,000 
C) $647,000 
D) $307,000

Question 5

Inventoriable costs are also known as:

Accepted Answer

A) variable costs. 
B) conversion costs. 
C) product costs. 
D) fixed costs. 
A) variable costs. 
B) conversion costs. 
C) product costs. 
D) fixed costs.

Question 6

An example of a discretionary fixed cost would be:

Accepted Answer

A) taxes on the factory. 
B) depreciation on manufacturing equipment. 
C) insurance. 
D) research and development. 
A) taxes on the factory. 
B) depreciation on manufacturing equipment. 
C) insurance. 
D) research and development.

Question 7

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 36,100 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $525,000 
B) $509,003 
C) $533,250 
D) $541,500 
A) $525,000 
B) $509,003 
C) $533,250 
D) $541,500

Question 8

Thread that is used in the production of mattresses is an indirect material that is therefore classified as manufacturing overhead.

Accepted Answer

A) True 
 B)False

Question 9

Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:

Accepted Answer

A) $3.40 
B) $2.14 
C) $1.00 
D) $0.87 
A) $3.40 
B) $2.14 
C) $1.00 
D) $0.87

Question 10

To the nearest whole dollar, what should be the total cost of operating the helpline costs at a volume of 33,800 calls in a month? (Assume that this call volume is within the relevant range.)

Accepted Answer

A) $369,000 
B) $327,515 
C) $392,370 
D) $415,740 
A) $369,000 
B) $327,515 
C) $392,370 
D) $415,740

Question 11

The property taxes on a factory building would be an example of:

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 12

Within the relevant range:

Accepted Answer

A) variable cost per unit decreases as production decreases. 
B) fixed cost per unit increases as production decreases. 
C) fixed cost per unit decreases as production decreases. 
D) variable cost per unit increases as production decreases. 
A) variable cost per unit decreases as production decreases. 
B) fixed cost per unit increases as production decreases. 
C) fixed cost per unit decreases as production decreases. 
D) variable cost per unit increases as production decreases.

Question 13

Using the high-low method, the estimate of the variable component of inspection cost per unit produced is closest to:

Accepted Answer

A) $10.57 
B) $0.11 
C) $17.89 
D) $9.33 
A) $10.57 
B) $0.11 
C) $17.89 
D) $9.33

Question 14

What would be the average fixed inspection cost per unit at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $23.04 
B) $90.32 
C) $24.12 
D) $45.83 
A) $23.04 
B) $90.32 
C) $24.12 
D) $45.83

Question 15

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

Accepted Answer

A) $71,000 
B) $59,000 
C) $12,000 
D) $39,000 
A) $71,000 
B) $59,000 
C) $12,000 
D) $39,000

Question 16

Which of the following is an example of a cost that is variable with respect to the number of units produced?

Accepted Answer

A) Rent on the administrative office building. 
B) Rent on the factory building. 
C) Direct labor cost, where the direct labor workforce is adjusted to the actual production of the period. 
D) Salaries of top marketing executives. 
A) Rent on the administrative office building. 
B) Rent on the factory building. 
C) Direct labor cost, where the direct labor workforce is adjusted to the actual production of the period. 
D) Salaries of top marketing executives.

Question 17

The total of the manufacturing overhead costs listed above for December is:

Accepted Answer

A) $30,000 
B) $82,000 
C) $647,000 
D) $340,000 
A) $30,000 
B) $82,000 
C) $647,000 
D) $340,000

Question 18

Total variable cost is expected to remain unchanged as activity changes within the relevant range.

Accepted Answer

A) True 
 B)False

Question 19

If the Tudor Retailing Company uses the high-low method of analysis, the total monthly fixed cost for Tudor Retailing Company would be estimated to be:

Accepted Answer

A) $34,500 
B) $17,000 
C) $27,000 
D) $22,000 
A) $34,500 
B) $17,000 
C) $27,000 
D) $22,000

Question 20

The ________________________ is the amount remaining from sales revenue after all variable expenses have been deducted.

Accepted Answer

A) cost structure 
B) gross margin 
C) contribution margin 
D) committed fixed cost 
A) cost structure 
B) gross margin 
C) contribution margin 
D) committed fixed cost

The best estimate of the total monthly fixed cost is:

If the Tudor Retailing Company uses the high-low method of analysis, the total selling and administrative expense if Tudor Retailing Company sells 6,500 units during a month would be estimated to be:

The nursing station on the fourth floor of Central Hospital is responsible for the care of orthopedic surgery patients. The costs of prescription drugs administered by the nursing station to patients should be classified as:

The total of the product costs listed above for December is:

Inventoriable costs are also known as:

An example of a discretionary fixed cost would be:

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 36,100 units? (Assume that this sales volume is within the relevant range.)

Thread that is used in the production of mattresses is an indirect material that is therefore classified as manufacturing overhead.

Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:

To the nearest whole dollar, what should be the total cost of operating the helpline costs at a volume of 33,800 calls in a month? (Assume that this call volume is within the relevant range.)

The property taxes on a factory building would be an example of:

Within the relevant range:

Using the high-low method, the estimate of the variable component of inspection cost per unit produced is closest to:

What would be the average fixed inspection cost per unit at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within the relevant range.

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

Which of the following is an example of a cost that is variable with respect to the number of units produced?

The total of the manufacturing overhead costs listed above for December is:

Total variable cost is expected to remain unchanged as activity changes within the relevant range.

If the Tudor Retailing Company uses the high-low method of analysis, the total monthly fixed cost for Tudor Retailing Company would be estimated to be:

The ________________________ is the amount remaining from sales revenue after all variable expenses have been deducted.

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

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Exam 1: Managerial Accounting and Cost Concepts

The best estimate of the total monthly fixed cost is:

If the Tudor Retailing Company uses the high-low method of analysis, the total selling and administrative expense if Tudor Retailing Company sells 6,500 units during a month would be estimated to be:

The nursing station on the fourth floor of Central Hospital is responsible for the care of orthopedic surgery patients. The costs of prescription drugs administered by the nursing station to patients should be classified as:

The total of the product costs listed above for December is:

Inventoriable costs are also known as:

An example of a discretionary fixed cost would be:

To the nearest whole dollar, what should be the total sales commissions at a sales volume of 36,100 units? (Assume that this sales volume is within the relevant range.)

Thread that is used in the production of mattresses is an indirect material that is therefore classified as manufacturing overhead.

Using the high-low method of analysis, the estimated variable cost per machine hour for electricity is closest to:

To the nearest whole dollar, what should be the total cost of operating the helpline costs at a volume of 33,800 calls in a month? (Assume that this call volume is within the relevant range.)

The property taxes on a factory building would be an example of:

Within the relevant range:

Using the high-low method, the estimate of the variable component of inspection cost per unit produced is closest to:

What would be the average fixed inspection cost per unit at an activity level of 6,700 machine-hours in a month? Assume that this level of activity is within the relevant range.

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

Which of the following is an example of a cost that is variable with respect to the number of units produced?

The total of the manufacturing overhead costs listed above for December is:

Total variable cost is expected to remain unchanged as activity changes within the relevant range.

If the Tudor Retailing Company uses the high-low method of analysis, the total monthly fixed cost for Tudor Retailing Company would be estimated to be:

The ________________________ is the amount remaining from sales revenue after all variable expenses have been deducted.

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