Question 1

Using the high-low method of analysis,the estimated variable lubrication cost per machine hour is closest to?

Accepted Answer

A)  $0.67. 
B)  $1.25. 
C)  $1.40. 
D)  $1.50. 
A)  $0.67. 
B)  $1.25. 
C)  $1.40. 
D)  $1.50. D

Question 2

Discretionary fixed costs usually arise from annual decisions by management to spend in certain fixed cost areas.

Accepted Answer

A) True 
 B)False  True

Question 3

Using the high-low method,the variable cost per machine hour would be?

Accepted Answer

A)  $0.40. 
B)  $0.60. 
C)  $0.64. 
D)  $0.68. 
A)  $0.40. 
B)  $0.60. 
C)  $0.64. 
D)  $0.68. B

Question 4

If total variable costs are $748,000,what is the company's contribution margin for this year?

Accepted Answer

A)  $120,000. 
B)  $158,000. 
C)  $252,000. 
D)  $300,000. 
A)  $120,000. 
B)  $158,000. 
C)  $252,000. 
D)  $300,000.

Question 5

A cost formula may not be valid outside the relevant range of activity.

Accepted Answer

A) True 
 B)False

Question 6

The expected total administrative expense next month is?

Accepted Answer

A)  $4,800. 
B)  $9,300. 
C)  $13,300. 
D)  $14,900. 
A)  $4,800. 
B)  $9,300. 
C)  $13,300. 
D)  $14,900.

Question 7

What is the company's net income for the quarter?

Accepted Answer

A)  $284,250. 
B)  $835,500. 
C)  $1,197,000. 
D)  $1,323,000. 
A)  $284,250. 
B)  $835,500. 
C)  $1,197,000. 
D)  $1,323,000.

Question 8

Maintenance costs for a movie theatre totalled $85,000 for the month of April during which there were 150,000 paid admissions.For the month of May,total maintenance costs were $101,750 with 183,500 paid admissions.The company's accountant is budgeting for the month of June with projected sales of 195,000 paid admissions.What amount should she budget for June maintenance costs?

Accepted Answer

A)  $107,500. 
B)  $108,127. 
C)  $110,500. 
D)  $111,750. 
A)  $107,500. 
B)  $108,127. 
C)  $110,500. 
D)  $111,750.

Question 9

The following data pertains to activity and costs for two months:   Assuming that these activity levels are within the relevant range,the mixed costs for July were?

Accepted Answer

A)  $10,000. 
B)  $15,000. 
C)  $35,000. 
D)  $40,000. 
A)  $10,000. 
B)  $15,000. 
C)  $35,000. 
D)  $40,000.

Question 10

The following information summarizes the company's cost structure:

Accepted Answer

@#IMG-DLM& 
Assume that all of the activity levels

Question 11

Anaconda Mining Company shipped 9,000 tons of copper concentrate for $450,000 in March and 11,000 tons for $549,000 in April.Shipping costs for 12,000 tons to be shipped in May would be expected to be?

Accepted Answer

A)  $548,780. 
B)  $549,020. 
C)  $594,000. 
D)  $598,500. 
A)  $548,780. 
B)  $549,020. 
C)  $594,000. 
D)  $598,500.

Question 12

The expected net income next month is?

Accepted Answer

A)  $2,700. 
B)  $5,100. 
C)  $7,500. 
D)  $11,200. 
A)  $2,700. 
B)  $5,100. 
C)  $7,500. 
D)  $11,200.

Question 13

Why is it important to separate mixed costs into fixed and variable portions?

Accepted Answer

A)  Mixed costs perform like variable costs. 
B)  The accuracy of budgets may be reduced if mixed costs are fully allocated to either the fixed or variable cost pools. 
C)  Mixed costs perform like fixed costs. 
D)  Mixed costs need to be removed from consideration in budgeting. 
A)  Mixed costs perform like variable costs. 
B)  The accuracy of budgets may be reduced if mixed costs are fully allocated to either the fixed or variable cost pools. 
C)  Mixed costs perform like fixed costs. 
D)  Mixed costs need to be removed from consideration in budgeting.

Question 14

Reddy Company has the following cost formulas for overhead:   Based on these cost formulas,the total overhead cost at 600 machine hours is expected to be?

Accepted Answer

A)  $4,500. 
B)  $5,200. 
C)  $5,340. 
D)  $5,600. 
A)  $4,500. 
B)  $5,200. 
C)  $5,340. 
D)  $5,600.

Question 15

At an activity level of 10,000 units,variable costs totalled $35,000 and fixed costs totalled $20,800.If 16,000 units are produced and this activity is within the relevant range,then:

Accepted Answer

A)  total cost would equal $89,280. 
B)  total unit cost would equal $4.80. 
C)  fixed cost per unit would equal $5.58. 
D)  total costs would equal $55,800. 
A)  total cost would equal $89,280. 
B)  total unit cost would equal $4.80. 
C)  fixed cost per unit would equal $5.58. 
D)  total costs would equal $55,800.

Question 16

Using the high-low method of analysis,the estimated variable cost per machine hour for electricity is closest to?

Accepted Answer

A)  $0.40. 
B)  $0.98. 
C)  $1.68. 
D)  $2.50. 
A)  $0.40. 
B)  $0.98. 
C)  $1.68. 
D)  $2.50.

Question 17

The following data pertain to activity and costs for two recent months:   Assuming that these activity levels are within the relevant range,the mixed costs for November were?

Accepted Answer

A)  $20,000. 
B)  $25,000. 
C)  $30,000. 
D)  $40,000. 
A)  $20,000. 
B)  $25,000. 
C)  $30,000. 
D)  $40,000.

Question 18

A cost that has both the characteristics of fixed cost and variable cost is known as a?

Accepted Answer

A)  mixed cost. 
B)  variable fixed cost. 
C)  sunk cost. 
D)  discretionary cost. 
A)  mixed cost. 
B)  variable fixed cost. 
C)  sunk cost. 
D)  discretionary cost.

Question 19

Contribution margin is the difference between total variable expenses and total fixed expenses.

Accepted Answer

A) True 
 B)False

Question 20

The expected gross margin next month is?

Accepted Answer

A)  $11,200. 
B)  $14,400. 
C)  $16,000. 
D)  $17,600. 
A)  $11,200. 
B)  $14,400. 
C)  $16,000. 
D)  $17,600.

Using the high-low method of analysis,the estimated variable lubrication cost per machine hour is closest to?

Discretionary fixed costs usually arise from annual decisions by management to spend in certain fixed cost areas.

Using the high-low method,the variable cost per machine hour would be?

If total variable costs are $748,000,what is the company's contribution margin for this year?

A cost formula may not be valid outside the relevant range of activity.

The expected total administrative expense next month is?

What is the company's net income for the quarter?

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range,the mixed costs for July were?

The following information summarizes the company's cost structure:

Anaconda Mining Company shipped 9,000 tons of copper concentrate for $450,000 in March and 11,000 tons for $549,000 in April.Shipping costs for 12,000 tons to be shipped in May would be expected to be?

The expected net income next month is?

Why is it important to separate mixed costs into fixed and variable portions?

Reddy Company has the following cost formulas for overhead: Based on these cost formulas,the total overhead cost at 600 machine hours is expected to be?

At an activity level of 10,000 units,variable costs totalled $35,000 and fixed costs totalled $20,800.If 16,000 units are produced and this activity is within the relevant range,then:

Using the high-low method of analysis,the estimated variable cost per machine hour for electricity is closest to?

The following data pertain to activity and costs for two recent months: Assuming that these activity levels are within the relevant range,the mixed costs for November were?

A cost that has both the characteristics of fixed cost and variable cost is known as a?

Contribution margin is the difference between total variable expenses and total fixed expenses.

The expected gross margin next month is?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

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Exam 3: Systems Design: Activity-Based Costing

Using the high-low method of analysis,the estimated variable lubrication cost per machine hour is closest to?

Discretionary fixed costs usually arise from annual decisions by management to spend in certain fixed cost areas.

Using the high-low method,the variable cost per machine hour would be?

If total variable costs are $748,000,what is the company's contribution margin for this year?

A cost formula may not be valid outside the relevant range of activity.

The expected total administrative expense next month is?

What is the company's net income for the quarter?

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range,the mixed costs for July were?

The following information summarizes the company's cost structure:

Anaconda Mining Company shipped 9,000 tons of copper concentrate for $450,000 in March and 11,000 tons for $549,000 in April.Shipping costs for 12,000 tons to be shipped in May would be expected to be?

The expected net income next month is?

Why is it important to separate mixed costs into fixed and variable portions?

Reddy Company has the following cost formulas for overhead: Based on these cost formulas,the total overhead cost at 600 machine hours is expected to be?

At an activity level of 10,000 units,variable costs totalled $35,000 and fixed costs totalled $20,800.If 16,000 units are produced and this activity is within the relevant range,then:

Using the high-low method of analysis,the estimated variable cost per machine hour for electricity is closest to?

The following data pertain to activity and costs for two recent months: Assuming that these activity levels are within the relevant range,the mixed costs for November were?

A cost that has both the characteristics of fixed cost and variable cost is known as a?

Contribution margin is the difference between total variable expenses and total fixed expenses.

The expected gross margin next month is?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters