Question 1

Prime cost was:

Accepted Answer

A) $150,000 
B) $190,000 
C) $350,000 
D) $415,000 
A) $150,000 
B) $190,000 
C) $350,000 
D) $415,000

Question 2

The best estimate of the total cost to manufacture 1,200 units is closest to:

Accepted Answer

A) $68,520 
B) $100,920 
C) $111,720 
D) $90,120 
A) $68,520 
B) $100,920 
C) $111,720 
D) $90,120

Question 3

Data for Cost A and Cost B appear below:   Which of the above best describes the behavior of Costs A and B?

Accepted Answer

A) Cost A is fixed, Cost B is variable. 
B) Cost A is variable, Cost B is fixed. 
C) Both Cost A and Cost B are variable. 
D) Both Cost A and Cost B are fixed. 
A) Cost A is fixed, Cost B is variable. 
B) Cost A is variable, Cost B is fixed. 
C) Both Cost A and Cost B are variable. 
D) Both Cost A and Cost B are fixed.

Question 4

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

Accepted Answer

A) $32.40 
B) $44.80 
C) $66.20 
D) $21.40 
A) $32.40 
B) $44.80 
C) $66.20 
D) $21.40

Question 5

If the level of activity increases within the relevant range:

Accepted Answer

A) variable cost per unit and total fixed costs also increase. 
B) fixed cost per unit and total variable cost also increase. 
C) total cost will increase and fixed cost per unit will decrease. 
D) variable cost per unit and total cost also increase. 
A) variable cost per unit and total fixed costs also increase. 
B) fixed cost per unit and total variable cost also increase. 
C) total cost will increase and fixed cost per unit will decrease. 
D) variable cost per unit and total cost also increase.

Question 6

The conversion cost for December was:

Accepted Answer

A) $134,000 
B) $109,000 
C) $192,000 
D) $129,000 
A) $134,000 
B) $109,000 
C) $192,000 
D) $129,000

Question 7

Direct labor is a part of prime cost, but not conversion cost.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

Cardiv 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 cost to manufacture 4,300 units is closest to:

Accepted Answer

A) $877,200 
B) $909,400 
C) $901,925 
D) $926,650 
A) $877,200 
B) $909,400 
C) $901,925 
D) $926,650

Question 10

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

Accepted Answer

A) $38,000 
B) $29,000 
C) $70,000 
D) $34,000 
A) $38,000 
B) $29,000 
C) $70,000 
D) $34,000

Question 11

Indirect labor is a(n):

Accepted Answer

A) Prime cost. 
B) Conversion cost. 
C) Period cost. 
D) Opportunity cost. 
A) Prime cost. 
B) Conversion cost. 
C) Period cost. 
D) Opportunity cost.

Question 12

The contribution format is widely used for preparing external financial statements.

Accepted Answer

A) True 
 B)False

Question 13

In a traditional format income statement for a merchandising company, the selling and administrative expenses report all period costs that have been expensed as incurred.

Accepted Answer

A) True 
 B)False

Question 14

The cost of goods sold for March was:

Accepted Answer

A) $146,000 
B) $150,000 
C) $142,000 
D) $237,000 
A) $146,000 
B) $150,000 
C) $142,000 
D) $237,000

Question 15

The contribution margin for December is:

Accepted Answer

A) $1,369,400 
B) $2,421,500 
C) $1,193,100 
D) $929,100 
A) $1,369,400 
B) $2,421,500 
C) $1,193,100 
D) $929,100

Question 16

Selling costs can be either direct or indirect costs.

Accepted Answer

A) True 
 B)False

Question 17

Cosgrove, Inc., is a wholesaler that distributes a single product. The company's revenues and expenses for the last three months are given below:   Required:
a. Determine which expenses are mixed and, by use of the high-low method, separate each mixed expense into variable and fixed elements. (Use unit sales as the activity measure.) State the cost formula for each mixed expense.
b. Compute the company's contribution margin for May.

Accepted Answer

a. The Cost of Goods Sold is always $56

Question 18

Contribution margin means:

Accepted Answer

A) what remains from total sales after deducting fixed expenses. 
B) what remains from total sales after deducting cost of goods sold. 
C) the sum of cost of goods sold and variable expenses. 
D) what remains from total sales after deducting all variable expenses. 
A) what remains from total sales after deducting fixed expenses. 
B) what remains from total sales after deducting cost of goods sold. 
C) the sum of cost of goods sold and variable expenses. 
D) what remains from total sales after deducting all variable expenses.

Question 19

The contribution margin for October is:

Accepted Answer

A) $260,000 
B) $232,000 
C) $196,500 
D) $369,500 
A) $260,000 
B) $232,000 
C) $196,500 
D) $369,500

Question 20

In making the decision to invest in the model 230 machine, the opportunity cost was:

Accepted Answer

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

Prime cost was:

The best estimate of the total cost to manufacture 1,200 units is closest to:

Data for Cost A and Cost B appear below: Which of the above best describes the behavior of Costs A and B?

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

If the level of activity increases within the relevant range:

The conversion cost for December was:

Direct labor is a part of prime cost, but not conversion cost.

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

Cardiv 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 cost to manufacture 4,300 units is closest to:

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

Indirect labor is a(n):

The contribution format is widely used for preparing external financial statements.

In a traditional format income statement for a merchandising company, the selling and administrative expenses report all period costs that have been expensed as incurred.

The cost of goods sold for March was:

The contribution margin for December is:

Selling costs can be either direct or indirect costs.

Contribution margin means:

The contribution margin for October is:

In making the decision to invest in the model 230 machine, the opportunity cost was:

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

Prime cost was:

The best estimate of the total cost to manufacture 1,200 units is closest to:

Data for Cost A and Cost B appear below: Which of the above best describes the behavior of Costs A and B?

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

If the level of activity increases within the relevant range:

The conversion cost for December was:

Direct labor is a part of prime cost, but not conversion cost.

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

Cardiv 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 cost to manufacture 4,300 units is closest to:

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

Indirect labor is a(n):

The contribution format is widely used for preparing external financial statements.

In a traditional format income statement for a merchandising company, the selling and administrative expenses report all period costs that have been expensed as incurred.

The cost of goods sold for March was:

The contribution margin for December is:

Selling costs can be either direct or indirect costs.

Contribution margin means:

The contribution margin for October is:

In making the decision to invest in the model 230 machine, the opportunity cost was:

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