Question 1

Commissions paid to salespersons are a variable selling expense.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following terms could be used to correctly describe the wages paid to the workers that cut up the cloth into the jean pattern shapes?

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 3

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

Which of the following classifications best describes the behavior of shipping expense?

Accepted Answer

A) Mixed 
B) Variable 
C) Fixed 
D) none of these 
A) Mixed 
B) Variable 
C) Fixed 
D) none of these

Question 5

Given the cost formula, Y = $7,000 + $1.80X, total cost for an activity level of 4,000 units would be:

Accepted Answer

A) $7,000 
B) $200 
C) $7,200 
D) $14,200 
A) $7,000 
B) $200 
C) $7,200 
D) $14,200

Question 6

What would be the average fixed cost per unit at an activity level of 5,600 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $32.27 
B) $15.68 
C) $65.74 
D) $15.40 
A) $32.27 
B) $15.68 
C) $65.74 
D) $15.40

Question 7

Iaci 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 $133.60 per unit.   The best estimate of the total contribution margin when 4,300 units are sold is:

Accepted Answer

A) $112,230 
B) $162,110 
C) $28,380 
D) $45,150 
A) $112,230 
B) $162,110 
C) $28,380 
D) $45,150

Question 8

If Carne Company were to sell 32,000 units, the total expected cost would be:

Accepted Answer

A) $75,000 
B) $78,000 
C) $80,000 
D) $77,000 
A) $75,000 
B) $78,000 
C) $80,000 
D) $77,000

Question 9

When the level of activity decreases, variable costs will:

Accepted Answer

A) increase per unit. 
B) increase in total. 
C) decrease in total. 
D) decrease per unit. 
A) increase per unit. 
B) increase in total. 
C) decrease in total. 
D) decrease per unit.

Question 10

The best estimate of the total monthly fixed manufacturing cost is:

Accepted Answer

A) $1,027,200 
B) $1,060,300 
C) $1,093,400 
D) $630,000 
A) $1,027,200 
B) $1,060,300 
C) $1,093,400 
D) $630,000

Question 11

Which of the following terms could be used to correctly describe the cost of the thread used to sew the jeans together?

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 data pertains to activity and costs for two months:   Assuming that these activity levels are within the relevant range, the manufacturing overhead for July was:

Accepted Answer

A) $10,000 
B) $11,700 
C) $19,000 
D) $9,300 
A) $10,000 
B) $11,700 
C) $19,000 
D) $9,300

Question 13

Given the cost formula Y = $18,000 + $6X, total cost at an activity level of 9,000 units would be:

Accepted Answer

A) $72,000 
B) $18,000 
C) $36,000 
D) $54,000 
A) $72,000 
B) $18,000 
C) $36,000 
D) $54,000

Question 14

At an activity level of 4,000 machine-hours in a month, Curt Corporation's total variable production engineering cost is $154,200 and its total fixed production engineering cost is $129,000. What would be the total production engineering cost per unit, both fixed and variable, at an activity level of 4,300 machine-hours in a month? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $68.33 
B) $68.55 
C) $70.80 
D) $65.86 
A) $68.33 
B) $68.55 
C) $70.80 
D) $65.86

Question 15

A soft drink bottler incurred the following factory utility cost: $3,936 for 800 cases bottled and $3,988 for 900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

Accepted Answer

A) $4.92 
B) $0.52 
C) $4.43 
D) $4.66 
A) $4.92 
B) $0.52 
C) $4.43 
D) $4.66

Question 16

Which of the following companies would have the highest proportion of variable costs in its cost structure?

Accepted Answer

A) Public utility. 
B) Airline. 
C) Fast food outlet. 
D) Architectural firm. 
A) Public utility. 
B) Airline. 
C) Fast food outlet. 
D) Architectural firm.

Question 17

Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service (UPS). Which two terms below describe the cost of shipping these wreaths?

Accepted Answer

A) variable cost and product cost 
B) variable cost and period cost 
C) fixed cost and product cost 
D) fixed cost and period cost 
A) variable cost and product cost 
B) variable cost and period cost 
C) fixed cost and product cost 
D) fixed cost and period cost

Question 18

The engineering approach to the analysis of mixed costs involves a detailed analysis of what cost behavior should be, based on an industrial engineer's evaluation of the production methods to be used, the materials specifications, labor requirements, equipment usage, production efficiency, power consumption, and so on.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) $59,000 
B) $366,000 
C) $669,000 
D) $303,000 
A) $59,000 
B) $366,000 
C) $669,000 
D) $303,000

Question 20

Maintenance costs at a Whetsel Corporation factory are listed below:   Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first and round off to the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to:

Accepted Answer

A) $8.86 per machine-hour; $20,577 per month 
B) $0.11 per machine-hour; $48,192 per month 
C) $15.48 per machine-hour; $48,103 per month 
D) $8.81 per machine-hour; $20,718 per month 
A) $8.86 per machine-hour; $20,577 per month 
B) $0.11 per machine-hour; $48,192 per month 
C) $15.48 per machine-hour; $48,103 per month 
D) $8.81 per machine-hour; $20,718 per month

Commissions paid to salespersons are a variable selling expense.

Which of the following terms could be used to correctly describe the wages paid to the workers that cut up the cloth into the jean pattern shapes?

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.

Which of the following classifications best describes the behavior of shipping expense?

Given the cost formula, Y = $7,000 + $1.80X, total cost for an activity level of 4,000 units would be:

What would be the average fixed cost per unit at an activity level of 5,600 units? Assume that this level of activity is within the relevant range.

Iaci 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 $133.60 per unit. The best estimate of the total contribution margin when 4,300 units are sold is:

If Carne Company were to sell 32,000 units, the total expected cost would be:

When the level of activity decreases, variable costs will:

The best estimate of the total monthly fixed manufacturing cost is:

Which of the following terms could be used to correctly describe the cost of the thread used to sew the jeans together?

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range, the manufacturing overhead for July was:

Given the cost formula Y = $18,000 + $6X, total cost at an activity level of 9,000 units would be:

A soft drink bottler incurred the following factory utility cost: $3,936 for 800 cases bottled and $3,988 for 900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

Which of the following companies would have the highest proportion of variable costs in its cost structure?

Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service (UPS). Which two terms below describe the cost of shipping these wreaths?

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

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

Commissions paid to salespersons are a variable selling expense.

Which of the following terms could be used to correctly describe the wages paid to the workers that cut up the cloth into the jean pattern shapes?

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.

Which of the following classifications best describes the behavior of shipping expense?

Given the cost formula, Y = $7,000 + $1.80X, total cost for an activity level of 4,000 units would be:

What would be the average fixed cost per unit at an activity level of 5,600 units? Assume that this level of activity is within the relevant range.

Iaci 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 $133.60 per unit. The best estimate of the total contribution margin when 4,300 units are sold is:

If Carne Company were to sell 32,000 units, the total expected cost would be:

When the level of activity decreases, variable costs will:

The best estimate of the total monthly fixed manufacturing cost is:

Which of the following terms could be used to correctly describe the cost of the thread used to sew the jeans together?

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range, the manufacturing overhead for July was:

Given the cost formula Y = $18,000 + $6X, total cost at an activity level of 9,000 units would be:

A soft drink bottler incurred the following factory utility cost: $3,936 for 800 cases bottled and $3,988 for 900 cases bottled. Factory utility cost is a mixed cost containing both fixed and variable components. The variable factory utility cost per case bottled is closest to:

Which of the following companies would have the highest proportion of variable costs in its cost structure?

Fresh Wreath Corporation manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service (UPS). Which two terms below describe the cost of shipping these wreaths?

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

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