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A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

A) True
B) False

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Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below: Comparative income statements for Boggs Sports Equipment Company for the last two months are presented below: All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed) . Assume that the relevant range includes all of the activity levels mentioned in this problem.Which of the selling and administrative expenses of the company is variable? A) Rent B) Sales Commissions C) Maintenance Expense D) Clerical Expense All of the company's costs are either fixed, variable, or a mixture of the two (i.e., mixed) . Assume that the relevant range includes all of the activity levels mentioned in this problem.Which of the selling and administrative expenses of the company is variable?


A) Rent
B) Sales Commissions
C) Maintenance Expense
D) Clerical Expense

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

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Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: A) $4,200 B) $10,400 C) $14,600 D) $12,000 If 3,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:


A) $4,200
B) $10,400
C) $14,600
D) $12,000

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

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Mccaskell 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: Mccaskell 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 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to: A) $79,600 B) $93,600 C) $87,600 D) $172,800 If 8,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:


A) $79,600
B) $93,600
C) $87,600
D) $172,800

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

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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 product costs incurred to make 4,000 units is closest to: A) $46,200 B) $38,200 C) $8,000 D) $50,200 For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:


A) $46,200
B) $38,200
C) $8,000
D) $50,200

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

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A cost incurred in the past that is not relevant to any current decision is classified as a(n) :


A) period cost.
B) opportunity cost.
C) sunk cost.
D) differential cost.

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

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Norred Corporation has provided the following information: Norred Corporation has provided the following information: If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: A) $120,800 B) $134,300 C) $12,800 D) $121,500 If 8,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:


A) $120,800
B) $134,300
C) $12,800
D) $121,500

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

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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) $150,900 B) $42,700 C) $43,680 D) $81,200 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) $150,900
B) $42,700
C) $43,680
D) $81,200

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

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Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the product costs above? A) $0 B) $81,000 C) $143,000 D) $161,000 What is the total of the product costs above?


A) $0
B) $81,000
C) $143,000
D) $161,000

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

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Ouelette 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: Ouelette 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 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to: A) $15,000 B) $22,800 C) $7,800 D) $25,800 If 6,000 units are produced, the total amount of indirect manufacturing cost incurred is closest to:


A) $15,000
B) $22,800
C) $7,800
D) $25,800

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

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Which of the following would most likely NOT be included as manufacturing overhead in a furniture factory?


A) The cost of the glue in a chair.
B) The amount paid to the individual who stains a chair.
C) The workman's compensation insurance of the supervisor who oversees production.
D) The factory utilities of the department in which production takes place.

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

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Traditional format income statements are widely used for preparing external financial statements.

A) True
B) False

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The following costs were incurred in May: The following costs were incurred in May: Prime costs during the month totaled: A) $93,600 B) $143,800 C) $70,200 D) $49,300 Prime costs during the month totaled:


A) $93,600
B) $143,800
C) $70,200
D) $49,300

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

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The cost of napkins put on each person's tray at a fast food restaurant is a variable cost with respect to how many persons are served.

A) True
B) False

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Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:


A) direct materials.
B) a period cost.
C) administrative expense.
D) manufacturing overhead.

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

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The following cost data pertain to the operations of Ladwig Department Stores, Incorporated, for the month of December. The following cost data pertain to the operations of Ladwig Department Stores, Incorporated, for the month of December. The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood 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 Brentwood Store? A) $74,000 B) $32,000 C) $157,000 D) $86,000 The Brentwood Store is just one of many stores owned and operated by the company. The Shoe Department is one of many departments at the Brentwood 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 Brentwood Store?


A) $74,000
B) $32,000
C) $157,000
D) $86,000

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

Correct Answer

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A partial listing of costs incurred during March at Febbo Corporation appears below: A partial listing of costs incurred during March at Febbo Corporation appears below: The total of the period costs listed above for March is: A) $68,000 B) $293,000 C) $291,000 D) $223,000 The total of the period costs listed above for March is:


A) $68,000
B) $293,000
C) $291,000
D) $223,000

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

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An example of a committed fixed cost is:


A) management training seminars.
B) a long-term equipment lease.
C) research and development.
D) advertising.

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

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Which of the following statements is correct in describing manufacturing overhead?


A) Manufacturing overhead when combined with direct materials cost forms conversion cost.
B) Manufacturing overhead consists of all manufacturing cost except for prime cost.
C) Manufacturing overhead is a period cost.
D) Manufacturing overhead when combined with direct labor cost forms prime cost.

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

Correct Answer

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Varela Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: Varela Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to: A) $43,400 B) $55,400 C) $59,400 D) $12,000 For financial reporting purposes, the total amount of product costs incurred to make 4,000 units is closest to:


A) $43,400
B) $55,400
C) $59,400
D) $12,000

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

Correct Answer

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Showing 241 - 260 of 346

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