Question 1

The conversion cost for September was:

Accepted Answer

A) $114,000 
B) $131,000 
C) $171,000 
D) $103,000 
A) $114,000 
B) $131,000 
C) $171,000 
D) $103,000

Question 2

Which of the following would most likely be included as part of manufacturing overhead in the production of a wooden table?

Accepted Answer

A) The amount paid to the individual who stains the table. 
B) The commission paid to the salesperson who sold the table. 
C) The cost of glue used in the table. 
D) The cost of the wood used in the table. 
A) The amount paid to the individual who stains the table. 
B) The commission paid to the salesperson who sold the table. 
C) The cost of glue used in the table. 
D) The cost of the wood used in the table.

Question 3

A sunk cost is:

Accepted Answer

A) a cost which may be saved by not adopting an alternative. 
B) a cost which may be shifted to the future with little or no effect on current operations. 
C) a cost which cannot be avoided because it has already been incurred. 
D) a cost which does not entail any dollar outlay but which is relevant to the decision-making process. 
A) a cost which may be saved by not adopting an alternative. 
B) a cost which may be shifted to the future with little or no effect on current operations. 
C) a cost which cannot be avoided because it has already been incurred. 
D) a cost which does not entail any dollar outlay but which is relevant to the decision-making process.

Question 4

The following data pertains to activity and utility cost for two recent periods:   Utility cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for utility cost is:

Accepted Answer

A) Y = $1.00 X 
B) Y = $1.25 X 
C) Y = $4,000 + $0.50 X 
D) Y = $1,500 + $1.25 X 
A) Y = $1.00 X 
B) Y = $1.25 X 
C) Y = $4,000 + $0.50 X 
D) Y = $1,500 + $1.25 X

Question 5

A manufacturing company prepays its insurance coverage for a three-year period. The premium for the three years is $2,400 and is paid at the beginning of the first year. Seventy percent of the premium applies to manufacturing operations and thirty percent applies to selling and administrative activities. What amounts should be considered product and period costs respectively for the first year of coverage?

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 6

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

Accepted Answer

A) $669,000 
B) $366,000 
C) $34,000 
D) $59,000 
A) $669,000 
B) $366,000 
C) $34,000 
D) $59,000

Question 7

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 8

The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:

Accepted Answer

A) direct costs. 
B) indirect costs. 
C) incremental costs. 
D) opportunity costs. 
A) direct costs. 
B) indirect costs. 
C) incremental costs. 
D) opportunity costs.

Question 9

Harris Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $84.40 per unit.   The best estimate of the total variable cost per unit is:

Accepted Answer

A) $77.00 
B) $57.00 
C) $69.50 
D) $78.50 
A) $77.00 
B) $57.00 
C) $69.50 
D) $78.50

Question 10

Variable costs are costs that vary, in total, in direct proportion to changes in the volume or level of activity.

Accepted Answer

A) True 
 B)False

Question 11

The cost of direct materials cost is classified as a:

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

The following costs were incurred in April:   Prime costs during the month totaled:

Accepted Answer

A) $53,000 
B) $67,000 
C) $38,000 
D) $103,000 
A) $53,000 
B) $67,000 
C) $38,000 
D) $103,000

Question 13

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

Accepted Answer

A) $7,371 
B) $5,731 
C) $5,875 
D) $5,840 
A) $7,371 
B) $5,731 
C) $5,875 
D) $5,840

Question 14

Gabat Inc. is a merchandising company. Last month the company's merchandise purchases totaled $67,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?

Accepted Answer

A) $108,000 
B) $67,000 
C) $64,000 
D) $70,000 
A) $108,000 
B) $67,000 
C) $64,000 
D) $70,000

Question 15

Depreciation on office equipment would be included in product costs.

Accepted Answer

A) True 
 B)False

Question 16

Supply costs at Chobot Corporation's chain of gyms are listed below:   Management believes that supply cost is a mixed cost that depends on client-visits. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first, rounding off to the nearest whole cent. Then compute the fixed component, rounding off to the nearest whole dollar. Those estimates are closest to:

Accepted Answer

A) $2.18 per client-visit; $26,745 per month 
B) $1.01 per client-visit; $14,330 per month 
C) $1.04 per client-visit; $13,949 per month 
D) $0.99 per client-visit; $14,607 per month 
A) $2.18 per client-visit; $26,745 per month 
B) $1.01 per client-visit; $14,330 per month 
C) $1.04 per client-visit; $13,949 per month 
D) $0.99 per client-visit; $14,607 per month

Question 17

Haab Inc. is a merchandising company. Last month the company's cost of goods sold was $66,000. The company's beginning merchandise inventory was $17,000 and its ending merchandise inventory was $11,000. What was the total amount of the company's merchandise purchases for the month?

Accepted Answer

A) $72,000 
B) $66,000 
C) $94,000 
D) $60,000 
A) $72,000 
B) $66,000 
C) $94,000 
D) $60,000

Question 18

To the nearest whole dollar, what should be the total property taxes at a sales volume of 39,700 units? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $802,900 
B) $748,295 
C) $832,195 
D) $861,490 
A) $802,900 
B) $748,295 
C) $832,195 
D) $861,490

Question 19

The gross margin for April was:

Accepted Answer

A) $1,465,600 
B) $3,960,400 
C) $1,017,600 
D) $600,400 
A) $1,465,600 
B) $3,960,400 
C) $1,017,600 
D) $600,400

Question 20

A fixed cost remains constant if expressed on a unit basis.

Accepted Answer

A) True 
 B)False

The conversion cost for September was:

Which of the following would most likely be included as part of manufacturing overhead in the production of a wooden table?

A sunk cost is:

The following data pertains to activity and utility cost for two recent periods: Utility cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for utility cost is:

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

The prime cost for September was:

The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:

Harris Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $84.40 per unit. The best estimate of the total variable cost per unit is:

Variable costs are costs that vary, in total, in direct proportion to changes in the volume or level of activity.

The cost of direct materials cost is classified as a:

The following costs were incurred in April: Prime costs during the month totaled:

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

Gabat Inc. is a merchandising company. Last month the company's merchandise purchases totaled $67,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?

Depreciation on office equipment would be included in product costs.

Haab Inc. is a merchandising company. Last month the company's cost of goods sold was $66,000. The company's beginning merchandise inventory was $17,000 and its ending merchandise inventory was $11,000. What was the total amount of the company's merchandise purchases for the month?

To the nearest whole dollar, what should be the total property taxes at a sales volume of 39,700 units? (Assume that this sales volume is within the relevant range.)

The gross margin for April was:

A fixed cost remains constant if expressed on a unit basis.

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 conversion cost for September was:

Which of the following would most likely be included as part of manufacturing overhead in the production of a wooden table?

A sunk cost is:

The following data pertains to activity and utility cost for two recent periods: Utility cost is a mixed cost with both fixed and variable components. Using the high-low method, the cost formula for utility cost is:

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

The prime cost for September was:

The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:

Harris Corporation is a wholesaler that sells a single product. Management has provided the following cost data for two levels of monthly sales volume. The company sells the product for $84.40 per unit. The best estimate of the total variable cost per unit is:

Variable costs are costs that vary, in total, in direct proportion to changes in the volume or level of activity.

The cost of direct materials cost is classified as a:

The following costs were incurred in April: Prime costs during the month totaled:

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

Gabat Inc. is a merchandising company. Last month the company's merchandise purchases totaled $67,000. The company's beginning merchandise inventory was $19,000 and its ending merchandise inventory was $22,000. What was the company's cost of goods sold for the month?

Depreciation on office equipment would be included in product costs.

Haab Inc. is a merchandising company. Last month the company's cost of goods sold was $66,000. The company's beginning merchandise inventory was $17,000 and its ending merchandise inventory was $11,000. What was the total amount of the company's merchandise purchases for the month?

To the nearest whole dollar, what should be the total property taxes at a sales volume of 39,700 units? (Assume that this sales volume is within the relevant range.)

The gross margin for April was:

A fixed cost remains constant if expressed on a unit basis.

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