Question 1

Brault Corporation has provided the following information:    If 10,000 units are sold, the variable cost per unit sold is closest to:

Accepted Answer

A) $22.75 
B) $11.95 
C) $13.50 
D) $28.80 
A) $22.75 
B) $11.95 
C) $13.50 
D) $28.80

Question 2

What would be the total variable inspection cost at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $78,918 
B) $69,846 
C) $79,824 
D) $10,368 
A) $78,918 
B) $69,846 
C) $79,824 
D) $10,368

Question 3

The variable cost per unit depends on how many units are produced.

Accepted Answer

A) True 
 B)False

Question 4

Contribution margin is:

Accepted Answer

A) Sales less cost of goods sold. 
B) Sales less variable production, variable selling, and variable administrative expenses. 
C) Sales less variable production expense. 
D) Sales less all variable and fixed expenses. 
A) Sales less cost of goods sold. 
B) Sales less variable production, variable selling, and variable administrative expenses. 
C) Sales less variable production expense. 
D) Sales less all variable and fixed expenses.

Question 5

If 5,000 units are sold, the total variable cost is closest to:

Accepted Answer

A) $53,250 
B) $68,250 
C) $80,250 
D) $60,250 
A) $53,250 
B) $68,250 
C) $80,250 
D) $60,250

Question 6

Depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company.

Accepted Answer

A) True 
 B)False

Question 7

The net operating income using the contribution approach for the first quarter is:

Accepted Answer

A) $270,000 
B) $180,000 
C) $144,000 
D) $66,000 
A) $270,000 
B) $180,000 
C) $144,000 
D) $66,000

Question 8

An example of a committed fixed cost would be:

Accepted Answer

A) taxes on real estate. 
B) management development programs. 
C) public relations costs. 
D) advertising programs. 
A) taxes on real estate. 
B) management development programs. 
C) public relations costs. 
D) advertising programs.

Question 9

The incremental manufacturing cost that the company will incur if it increases production from 4,000 to 4,001 units is closest to:

Accepted Answer

A) $16.00 
B) $14.05 
C) $10.45 
D) $13.45 
A) $16.00 
B) $14.05 
C) $10.45 
D) $13.45

Question 10

A fixed cost is not constant per unit of product.

Accepted Answer

A) True 
 B)False

Question 11

A cost can be direct or indirect.The classification can change if the cost object changes.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is correct concerning reactions to INCREASES in activity?

Accepted Answer

The answer of Which of the following is correct concerning...

Question 13

Factory overhead is typically a(n):

Accepted Answer

A) mixed cost. 
B) fixed cost. 
C) variable cost. 
D) irrelevant cost. 
A) mixed cost. 
B) fixed cost. 
C) variable cost. 
D) irrelevant cost.

Question 14

Variable costs per unit are not affected by changes in activity.

Accepted Answer

A) True 
 B)False

Question 15

The conversion cost for November was:

Accepted Answer

A) $187,000 
B) $112,000 
C) $136,000 
D) $140,000 
A) $187,000 
B) $112,000 
C) $136,000 
D) $140,000

Question 16

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.

Accepted Answer

A) True 
 B)False

Question 17

Timchak Corporation reports that at an activity level of 9,900 units, its total variable cost is $919,116 and its total fixed cost is $259,974.What would be the total cost, both fixed and variable, at an activity level of 10,100 units? Assume that this level of activity is within the relevant range.

Accepted Answer

A) $1,197,658 
B) $1,191,000 
C) $1,179,090 
D) $1,202,910 
A) $1,197,658 
B) $1,191,000 
C) $1,179,090 
D) $1,202,910

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

Accepted Answer

A) $26,550 
B) $23,550 
C) $33,300 
D) $27,300 
A) $26,550 
B) $23,550 
C) $33,300 
D) $27,300

Question 20

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable.This cost per unit increase may be due to _____________ costs if the level of activity at Jinan is _______________.

Accepted Answer

A) fixed, decreasing 
B) fixed, increasing 
C) variable, decreasing 
D) variable, increasing 
A) fixed, decreasing 
B) fixed, increasing 
C) variable, decreasing 
D) variable, increasing

Exam 1: Managerial Accounting and Cost Concepts

Brault Corporation has provided the following information: If 10,000 units are sold, the variable cost per unit sold is closest to:

What would be the total variable inspection cost at an activity level of 2,400 machine-hours in a month? Assume that this level of activity is within the relevant range.

The variable cost per unit depends on how many units are produced.

Contribution margin is:

If 5,000 units are sold, the total variable cost is closest to:

Depreciation is always considered a period cost for external financial reporting purposes in a manufacturing company.

The net operating income using the contribution approach for the first quarter is:

An example of a committed fixed cost would be:

The incremental manufacturing cost that the company will incur if it increases production from 4,000 to 4,001 units is closest to:

A fixed cost is not constant per unit of product.

A cost can be direct or indirect.The classification can change if the cost object changes.

Which of the following is correct concerning reactions to INCREASES in activity?

Factory overhead is typically a(n):

Variable costs per unit are not affected by changes in activity.

The conversion cost for November was:

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.

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

If 3,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable.This cost per unit increase may be due to _____________ costs if the level of activity at Jinan is _______________.

Job-Order Costing: Calculating Unit Product Costs

Job-Order Costing: Cost Flows and External Reporting

Activity-Based Costing

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Variable Costing and Segment Reporting: Tools for Management

Master Budgeting

Performance Measurement in Decentralized Organizations

Differential Analysis: The Key to Decision Making

Capital Budgeting Decisions

Flexible Budgets Standard Costs and Variance Analysis

Statement of Cash Flows

Financial Statement Analysis

Job-Order Costing: Cost Flows and External Reporting

Process Costing6 Cost-Volume-Profit Relationships

Cost-Volume-Profit Relationships

Flexible Budgets, Standard Costs, and Variance Analysis

Flexible Budgets, Standard Costs, and Variance Analysis

A Capital Budgeting Decisions

A Statement of Cash Flows

Filters

For the past 8 months, Jinan Corporation has experienced a steady increase in its cost per unit even though total costs have remained stable.This cost per unit increase may be due to _ costs if the level of activity at Jinan is ___.