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A fixed cost is not constant per unit of product.

A) True
B) False

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The potential benefit that is given up when one alternative is selected over another is called a sunk cost.

A) True
B) False

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Streif Incorporated a local retailer, has provided the following data for the month of June: Streif Incorporated a local retailer, has provided the following data for the month of June: The cost of goods sold for June was: A) $128,000 B) $181,000 C) $122,000 D) $134,000 The cost of goods sold for June was:


A) $128,000
B) $181,000
C) $122,000
D) $134,000

E) All of the above
F) C) and D)

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Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Fasheh Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: If 10,000 units are produced, the average fixed manufacturing cost per unit produced is closest to: A) $15.00 B) $12.83 C) $13.50 D) $12.15 If 10,000 units are produced, the average fixed manufacturing cost per unit produced is closest to:


A) $15.00
B) $12.83
C) $13.50
D) $12.15

E) A) and C)
F) All of the above

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Bolka Corporation, a merchandising company, reported the following results for October: Bolka Corporation, a merchandising company, reported the following results for October: The gross margin for October is: A) $198,400 B) $233,600 C) $136,500 D) $345,100 The gross margin for October is:


A) $198,400
B) $233,600
C) $136,500
D) $345,100

E) A) and B)
F) B) and C)

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Delongis Corporation, a merchandising company, reported the following results for June: Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company.The gross margin for June is: A) $242,600 B) $148,800 C) $124,800 D) $102,200 Cost of goods sold is a variable cost in this company.The gross margin for June is:


A) $242,600
B) $148,800
C) $124,800
D) $102,200

E) A) and D)
F) None of the above

Correct Answer

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Bolka Corporation, a merchandising company, reported the following results for October: Bolka Corporation, a merchandising company, reported the following results for October: The contribution margin for October is: A) $1,424,500 B) $3,191,400 C) $1,901,900 D) $996,900 The contribution margin for October is:


A) $1,424,500
B) $3,191,400
C) $1,901,900
D) $996,900

E) A) and D)
F) All of the above

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Product costs are also known as inventoriable costs.

A) True
B) False

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Selling costs are indirect costs.

A) True
B) False

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Most companies use the contribution approach in preparing financial statements for external reporting purposes.

A) True
B) False

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The sum of all manufacturing costs except for direct materials and direct labor is called manufacturing overhead.

A) True
B) False

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Lagle Corporation has provided the following information: Lagle Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to: A) $12,200 B) $7,800 C) $4,400 D) $8,100 For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:


A) $12,200
B) $7,800
C) $4,400
D) $8,100

E) A) and B)
F) All of the above

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Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device.The salary that Mark earns at his present employ is:


A) a variable cost
B) a fixed cost
C) a product cost
D) an opportunity cost

E) A) and D)
F) None of the above

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Balerio Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Balerio Corporation's relevant range of activity is 7,000 units to 11,000 units. When it produces and sells 9,000 units, its average costs per unit are as follows: Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units? (Do not round intermediate calculations.)b. If 10,000 units are sold, what is the variable cost per unit sold? (Round Per unit answer to 2 decimal places.)c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate calculations. Round Per unit answer to 2 decimal places.)d. If the selling price is $18.20 per unit, what is the contribution margin per unit sold? (Round Per unit answer to 2 decimal places.)e. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units? (Round Per unit answer to 2 decimal places.) Required:a. For financial reporting purposes, what is the total amount of product costs incurred to make 9,000 units? (Do not round intermediate calculations.)b. If 10,000 units are sold, what is the variable cost per unit sold? (Round "Per unit" answer to 2 decimal places.)c. If 10,000 units are sold, what is the total amount of variable costs related to the units sold? (Do not round intermediate calculations. Round "Per unit" answer to 2 decimal places.)d. If the selling price is $18.20 per unit, what is the contribution margin per unit sold? (Round "Per unit" answer to 2 decimal places.)e. What incremental manufacturing cost will the company incur if it increases production from 9,000 to 9,001 units? (Round "Per unit" answer to 2 decimal places.)

Correct Answer

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Tirri Corporation has provided the following information: Tirri Corporation has provided the following information: If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to: A) $12.65 B) $6.65 C) $15.45 D) $9.70 If the selling price is $26.20 per unit, the contribution margin per unit sold is closest to:


A) $12.65
B) $6.65
C) $15.45
D) $9.70

E) C) and D)
F) All of the above

Correct Answer

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A direct cost is a cost that can be easily traced to the particular cost object under consideration.

A) True
B) False

Correct Answer

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Lagle Corporation has provided the following information: Lagle Corporation has provided the following information: If 8,000 units are sold, the total variable cost is closest to: A) $79,200 B) $129,000 C) $97,200 D) $97,600 If 8,000 units are sold, the total variable cost is closest to:


A) $79,200
B) $129,000
C) $97,200
D) $97,600

E) A) and D)
F) A) and C)

Correct Answer

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Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 4,000 units are sold, the total variable cost is closest to: A) $67,000 B) $47,600 C) $51,400 D) $58,800 If 4,000 units are sold, the total variable cost is closest to:


A) $67,000
B) $47,600
C) $51,400
D) $58,800

E) B) and C)
F) A) and D)

Correct Answer

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Delongis Corporation, a merchandising company, reported the following results for June: Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company.The contribution margin for June is: A) $148,800 B) $102,200 C) $218,600 D) $124,800 Cost of goods sold is a variable cost in this company.The contribution margin for June is:


A) $148,800
B) $102,200
C) $218,600
D) $124,800

E) B) and D)
F) All of the above

Correct Answer

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The following cost data pertain to the operations of Quinonez Department Stores, Incorporated, for the month of September. The following cost data pertain to the operations of Quinonez Department Stores, Incorporated, for the month of September. The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store? A) $152,000 B) $33,000 C) $45,000 D) $77,000 The Northridge Store is just one of many stores owned and operated by the company. The Cosmetics Department is one of many departments at the Northridge Store. The central warehouse serves all of the company's stores.What is the total amount of the costs listed above that are NOT direct costs of the Northridge Store?


A) $152,000
B) $33,000
C) $45,000
D) $77,000

E) None of the above
F) A) and B)

Correct Answer

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Showing 221 - 240 of 346

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