Question 1

Bryans Corporation has provided the following data for its two most recent years of operation:
  
-The net operating income (loss) under variable costing in Year 1 is closest to:

Accepted Answer

A)   $174,000
B)   $37,000
C)   $150,000
D)   $16,000E) None of the above
F) B) and C)

Question 2

Under the absorption costing method,a company can increase profits simply by increasing the number of units produced.

Accepted Answer

A) True 
 B)False

Question 3

Muckleroy Corporation has two divisions: Division K and Division L.Data from the most recent month appear below:
 Management has allocated common fixed expenses to the Divisions based on their sales.The break-even in sales dollars for Division K is closest to:

Accepted Answer

A)   $244,103
B)   $206,154
C)   $174,359
D)   $470,945E) B) and C)
F) A) and B)

Question 4

Fernstrom Corporation has two divisions: East and West.Data from the most recent month appear below:
 The company's common fixed expenses total $52,140.If the company operates at exactly the break-even sales of the East Division and West Division,what would be the company's overall net operating income?

Accepted Answer

A)   $0
B)   ($235,140) 
C)   ($52,140) 
D)   $30,540E) B) and D)
F) A) and B)

Question 5

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period:
  The common fixed expenses have been allocated to the divisions on the basis of sales.
-The Southern Division's break-even sales is closest to:

Accepted Answer

A)   $192,661
B)   $265,119
C)   $386,408
D)   $130,508E) B) and C)
F) A) and B)

Question 6

Moskowitz Corporation has provided the following data for its two most recent years of operation:
  
-The unit product cost under variable costing in Year 1 is closest to:

Accepted Answer

A)   $63.00
B)   $69.00
C)   $23.00
D)   $29.00E) A) and C)
F) A) and B)

Question 7

Jemmott Corporation has two divisions: Western Division and Eastern Division. The following report is for the most recent operating period:
  The common fixed expenses have been allocated to the divisions on the basis of sales.
-What is the company's overall net operating income if it operates at the break-even points for its two divisions?

Accepted Answer

A)   $34,100
B)   $0
C)   $(69,020) 
D)   $(260,020) E) A) and D)
F) B) and C)

Question 8

Zable Corporation has two divisions:
 Town Division and Country Division.The following report is for the most recent operating period:
  The company's common fixed expenses total $68,320.
Required:
a.What is the Town Division's break-even in sales dollars?
b.What is the Country Division's break-even in sales dollars?
c.What is the company's overall break-even in sales dollars?

Accepted Answer

a.Town Division break-even:
Segment CM ...

Question 9

Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:

Accepted Answer

A)   units sold exceed units produced.
B)   units sold are less than units produced.
C)   units sold equal units produced.
D)   the average fixed cost per unit is zero.E) All of the above
F) A) and D)

Question 10

Lean production should result in reduced inventories.If lean production is successfully implemented,the difference in net operating income computed under the absorption and variable costing methods should be reduced.

Accepted Answer

A) True 
 B)False

Question 11

Moskowitz Corporation has provided the following data for its two most recent years of operation:
  
-The unit product cost under absorption costing in Year 2 is closest to:

Accepted Answer

A)   $77.00
B)   $48.00
C)   $23.00
D)   $71.00E) C) and D)
F) None of the above

Exam 6: Variable Costing and Segment Reporting: Tools for Management

Lean production should result in reduced inventories.If lean production is successfully implemented,the difference in net operating income computed under the absorption and variable costing methods should be reduced.

Correct Answer
verified

Moskowitz Corporation has provided the following data for its two most recent years of operation: -The unit product cost under absorption costing in Year 2 is closest to:

Correct Answer
verified

Bryans Corporation has provided the following data for its two most recent years of operation: -The net operating income (loss) under variable costing in Year 1 is closest to:

Correct Answer
verified

Under the absorption costing method,a company can increase profits simply by increasing the number of units produced.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Muckleroy Corporation has two divisions: Division K and Division L.Data from the most recent month appear below: Management has allocated common fixed expenses to the Divisions based on their sales.The break-even in sales dollars for Division K is closest to:

Correct Answer
verified

Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:

Correct Answer
verified

Correct Answer
verified
a.Town Division break-even:
Segment CM ...
View Answer

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. -The Southern Division's break-even sales is closest to:

Correct Answer
verified

Moskowitz Corporation has provided the following data for its two most recent years of operation: -The unit product cost under variable costing in Year 1 is closest to:

Correct Answer
verified

Exam 6: Variable Costing and Segment Reporting: Tools for Management

Lean production should result in reduced inventories.If lean production is successfully implemented,the difference in net operating income computed under the absorption and variable costing methods should be reduced.

Correct AnswerverifiedShow Answer

Moskowitz Corporation has provided the following data for its two most recent years of operation: -The unit product cost under absorption costing in Year 2 is closest to:

Correct AnswerverifiedShow Answer

Bryans Corporation has provided the following data for its two most recent years of operation: -The net operating income (loss) under variable costing in Year 1 is closest to:

Correct AnswerverifiedShow Answer

Under the absorption costing method,a company can increase profits simply by increasing the number of units produced.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Muckleroy Corporation has two divisions: Division K and Division L.Data from the most recent month appear below: Management has allocated common fixed expenses to the Divisions based on their sales.The break-even in sales dollars for Division K is closest to:

Correct AnswerverifiedShow Answer

Net operating income computed under variable costing would exceed net operating income computed using absorption costing if:

Correct AnswerverifiedShow Answer

Correct Answerverified a.Town Division break-even:Segment CM ...View AnswerShow Answer

Neelon Corporation has two divisions: Southern Division and Northern Division. The following data are for the most recent operating period: The common fixed expenses have been allocated to the divisions on the basis of sales. -The Southern Division's break-even sales is closest to:

Correct AnswerverifiedShow Answer

Moskowitz Corporation has provided the following data for its two most recent years of operation: -The unit product cost under variable costing in Year 1 is closest to:

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
a.Town Division break-even:
Segment CM ...
View Answer

Correct Answer
verified

Correct Answer
verified