Question 1

Which of the following costs is classified as a prime cost?

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 2

Which of the following is classified as a direct labor cost?

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

The salary paid to the maintenance supervisor in a manufacturing plant is 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 4

All of the following costs would be found in a company's accounting records except:

Accepted Answer

A) sunk cost. 
B) opportunity cost. 
C) indirect costs. 
D) direct costs. 
A) sunk cost. 
B) opportunity cost. 
C) indirect costs. 
D) direct costs.

Question 5

In making the decision to buy the model 260 machine rather than the model 330 machine, the sunk cost was:

Accepted Answer

A) $418,000 
B) $456,000 
C) $474,000 
D) $496,000 
A) $418,000 
B) $456,000 
C) $474,000 
D) $496,000

Question 6

What would be the total variable inspection cost 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) $423,680 
B) $443,540 
C) $161,604 
D) $578,048 
A) $423,680 
B) $443,540 
C) $161,604 
D) $578,048

Question 7

The contribution margin for July is:

Accepted Answer

A) $534,600 
B) $699,300 
C) $359,900 
D) $1,453,400 
A) $534,600 
B) $699,300 
C) $359,900 
D) $1,453,400

Question 8

The best estimate of the total cost to manufacture 6,300 units is closest to:

Accepted Answer

A) $984,060 
B) $1,031,310 
C) $1,047,060 
D) $1,078,560 
A) $984,060 
B) $1,031,310 
C) $1,047,060 
D) $1,078,560

Question 9

Eddy Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product.   The best estimate of the total variable manufacturing cost per unit is:

Accepted Answer

A) $22.90 
B) $119.80 
C) $142.70 
D) $97.10 
A) $22.90 
B) $119.80 
C) $142.70 
D) $97.10

Question 10

Manufacturing salaries and wages incurred in the factory are period costs.

Accepted Answer

A) True 
 B)False

Question 11

What would be the total variable maintenance cost at an activity level of 8,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $777,212 
B) $220,448 
C) $576,888 
D) $228,416 
A) $777,212 
B) $220,448 
C) $576,888 
D) $228,416

Question 12

Stony Electronics Corporation manufactures a portable radio designed for mounting on the wall of the bathroom. The following list represents some of the different types of costs incurred in the manufacture of these radios:
1. The plant manager's salary.
2. The cost of heating the plant.
3. The cost of heating executive offices.
4. The cost of printed circuit boards used in the radios.
5. Salaries and commissions of company salespersons.
6. Depreciation on office equipment used in the executive offices.
7. Depreciation on production equipment used in the plant.
8. Wages of janitorial personnel who clean the plant.
9. The cost of insurance on the plant building.
10. The cost of electricity to light the plant.
11. The cost of electricity to power plant equipment.
12. The cost of maintaining and repairing equipment in the plant.
13. The cost of printing promotional materials for trade shows.
14. The cost of solder used in assembling the radios.
15. The cost of telephone service for the executive offices.
Required:
Classify each of the items above as product (inventoriable) cost or period (noninventoriable) cost for the purpose of preparing external financial statements.

Accepted Answer

1. Product.
2. Product.
3. Per

Question 13

In making the decision to invest in the model 260 machine, the opportunity cost was:

Accepted Answer

A) $418,000 
B) $456,000 
C) $474,000 
D) $496,000 
A) $418,000 
B) $456,000 
C) $474,000 
D) $496,000

Question 14

The best estimate of the total variable manufacturing cost per unit is:

Accepted Answer

A) $39.10 
B) $27.70 
C) $11.40 
D) $13.20 
A) $39.10 
B) $27.70 
C) $11.40 
D) $13.20

Question 15

Kaelker Corporation reports that at an activity level of 7,000 units, its total variable cost is $590,730 and its total fixed cost is $372,750. What would be the total cost, both fixed and variable, at an activity level of 7,100 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $963,480 
B) $977,244 
C) $971,919 
D) $970,362 
A) $963,480 
B) $977,244 
C) $971,919 
D) $970,362

Question 16

A contribution format income statement for a merchandising company organizes costs into two categories-cost of goods sold and selling and administrative expenses.

Accepted Answer

A) True 
 B)False

Question 17

Match between columns
                        Premises: Cost of renting production equipment on a monthly basis at a snowboard manufacturer; Snowboards produced;
Cost of leasing checkout equipment on a monthly basis at a hardware store; Dollar sales;
Salary of the staff chaplain at a hospital; Number of patients;
Cook's wages at a taco shop; Dollar sales;
Interest expense on corporate debt; Dollar sales;
Windshield wiper blades installed on autos at an auto assembly plant; Number of autos assembled;
Cost of advertising at a snowboard company; Snowboards sold;
Lease cost of equipment at a dentist's office; Number of patients;
Cost of cement used to produce cinder blocks; Cinder blocks produced;
Cost of vaccine used at a clinic; Vaccines administered;

Accepted Answer

The Answer of Fixed and Variable is...

Question 18

Baker Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product.   The best estimate of the total variable manufacturing cost per unit is:

Accepted Answer

A) $89.50 
B) $18.40 
C) $71.10 
D) $30.90 
A) $89.50 
B) $18.40 
C) $71.10 
D) $30.90

Question 19

To the nearest whole dollar, what should be the total lease cost at a sales volume of 30,900 units in a month? (Assume that this sales volume is within the relevant range.)

Accepted Answer

A) $742,317 
B) $692,160 
C) $704,480 
D) $716,800 
A) $742,317 
B) $692,160 
C) $704,480 
D) $716,800

Question 20

Property taxes and insurance premiums paid on a factory building are examples of period costs.

Accepted Answer

A) True 
 B)False

Which of the following costs is classified as a prime cost?

Which of the following is classified as a direct labor cost?

The salary paid to the maintenance supervisor in a manufacturing plant is an example of:

All of the following costs would be found in a company's accounting records except:

In making the decision to buy the model 260 machine rather than the model 330 machine, the sunk cost was:

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

The contribution margin for July is:

The best estimate of the total cost to manufacture 6,300 units is closest to:

Eddy Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total variable manufacturing cost per unit is:

Manufacturing salaries and wages incurred in the factory are period costs.

What would be the total variable maintenance cost at an activity level of 8,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

In making the decision to invest in the model 260 machine, the opportunity cost was:

The best estimate of the total variable manufacturing cost per unit is:

Kaelker Corporation reports that at an activity level of 7,000 units, its total variable cost is $590,730 and its total fixed cost is $372,750. What would be the total cost, both fixed and variable, at an activity level of 7,100 units? Assume that this level of activity is within the relevant range.

A contribution format income statement for a merchandising company organizes costs into two categories-cost of goods sold and selling and administrative expenses.

Baker Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total variable manufacturing cost per unit is:

To the nearest whole dollar, what should be the total lease cost at a sales volume of 30,900 units in a month? (Assume that this sales volume is within the relevant range.)

Property taxes and insurance premiums paid on a factory building are examples of period costs.

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

Which of the following costs is classified as a prime cost?

Which of the following is classified as a direct labor cost?

The salary paid to the maintenance supervisor in a manufacturing plant is an example of:

All of the following costs would be found in a company's accounting records except:

In making the decision to buy the model 260 machine rather than the model 330 machine, the sunk cost was:

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

The contribution margin for July is:

The best estimate of the total cost to manufacture 6,300 units is closest to:

Eddy Corporation has provided the following production and total cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total variable manufacturing cost per unit is:

Manufacturing salaries and wages incurred in the factory are period costs.

What would be the total variable maintenance cost at an activity level of 8,600 machine-hours in a month? Assume that this level of activity is within the relevant range.

In making the decision to invest in the model 260 machine, the opportunity cost was:

The best estimate of the total variable manufacturing cost per unit is:

A contribution format income statement for a merchandising company organizes costs into two categories-cost of goods sold and selling and administrative expenses.

Baker Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total variable manufacturing cost per unit is:

To the nearest whole dollar, what should be the total lease cost at a sales volume of 30,900 units in a month? (Assume that this sales volume is within the relevant range.)

Property taxes and insurance premiums paid on a factory building are examples of period costs.

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