Question 1

The salary of the college president is a _____ for a college.

Accepted Answer

A)  fixed cost 
B)  variable cost 
C)  cost driver 
D)  sunk cost 
A)  fixed cost 
B)  variable cost 
C)  cost driver 
D)  sunk cost

Question 2

Matching
Select the appropriate cost behavior for each of the costs listed below.
-controller's salary

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 3

Select the appropriate cost behavior for each of the costs listed below.
-cost of lubricating machinery

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 4

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer.
-cost of car stereos

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 5

Variable costs within the relevant range

Accepted Answer

A)  stay constant on a per unit basis as output changes. 
B)  increase in total as output increases. 
C)  decrease in total as output decreases. 
D)  All of these are correct. 
A)  stay constant on a per unit basis as output changes. 
B)  increase in total as output increases. 
C)  decrease in total as output decreases. 
D)  All of these are correct.

Question 6

Taran Company incurred the following costs for the months of January and February.   From the information above we can assume that

Accepted Answer

A)  insurance and depreciation are fixed costs. 
B)  output decreased from January to February. 
C)  output stayed the same from January to February. 
D)  insurance is a mixed cost. 
A)  insurance and depreciation are fixed costs. 
B)  output decreased from January to February. 
C)  output stayed the same from January to February. 
D)  insurance is a mixed cost.

Question 7

Variable costing and absorption costing income statements may differ because of their treatment of fixed factory overhead.

Accepted Answer

A) True 
 B)False

Question 8

The cost formula for monthly depreciation cost in a factory is ​
Total cost = $10,000
​
This cost is

Accepted Answer

A)  strictly variable. 
B)  strictly fixed. 
C)  a mixed cost. 
D)  a step cost. 
A)  strictly variable. 
B)  strictly fixed. 
C)  a mixed cost. 
D)  a step cost.

Question 9

Total variable costs

Accepted Answer

A)  increases as output increases. 
B)  decreases as output decreases. 
C)  equal a variable rate × amount of output. 
D)  all of these are correct. 
A)  increases as output increases. 
B)  decreases as output decreases. 
C)  equal a variable rate × amount of output. 
D)  all of these are correct.

Question 10

Which of the following is true if output increases by 20% and is still within the relevant range?

Accepted Answer

A)  Total fixed costs increase by 20%. 
B)  Contribution margin decreases by 60%. 
C)  Net income decreases by 40%. 
D)  Total variable costs increase by 20%. 
A)  Total fixed costs increase by 20%. 
B)  Contribution margin decreases by 60%. 
C)  Net income decreases by 40%. 
D)  Total variable costs increase by 20%.

Question 11

The cost of advertising is usually a discretionary fixed cost.

Accepted Answer

A) True 
 B)False

Question 12

The _____ is a variable cost for Sam's restaurant business.

Accepted Answer

A)  depreciation on equipment 
B)  rental cost of the building 
C)  cost of raw materials 
D)  salary of the manager 
A)  depreciation on equipment 
B)  rental cost of the building 
C)  cost of raw materials 
D)  salary of the manager

Question 13

Matching
Select the appropriate cost behavior for each of the costs listed below.
-factory supplies

Accepted Answer

A) variable 
B) fixed 
A) variable 
B) fixed

Question 14

Inventory costs under variable costing include only direct materials, direct labor, and variable factory overhead.

Accepted Answer

A) True 
 B)False

Question 15

The following cost formula was developed using monthly data for a retail clothing store. Total cost = $50,000 + ($250 × number of customers)
The number $50,000:

Accepted Answer

A)  is the unknown variable 
B)  is the dependent variable. 
C)  is the intercept. 
D)  is the slope rate. 
A)  is the unknown variable 
B)  is the dependent variable. 
C)  is the intercept. 
D)  is the slope rate.

Question 16

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns)
​
The term $87,100

Accepted Answer

A)  is the independent variable. 
B)  is the dependent variable. 
C)  is the intercept. 
D)  is the variable rate. 
A)  is the independent variable. 
B)  is the dependent variable. 
C)  is the intercept. 
D)  is the variable rate.

Question 17

What is the primary difference between variable and absorption costing?

Accepted Answer

A)  inclusion of fixed selling expenses in product costs 
B)  inclusion of variable factory overhead in period costs 
C)  inclusion of fixed selling expenses in period costs 
D)  inclusion of fixed factory overhead in product costs 
A)  inclusion of fixed selling expenses in product costs 
B)  inclusion of variable factory overhead in period costs 
C)  inclusion of fixed selling expenses in period costs 
D)  inclusion of fixed factory overhead in product costs

Question 18

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns)
​
The term $210

Accepted Answer

A)  is the independent variable. 
B)  is the dependent variable. 
C)  is the intercept. 
D)  is the variable rate. 
A)  is the independent variable. 
B)  is the dependent variable. 
C)  is the intercept. 
D)  is the variable rate.

Question 19

Select the appropriate type of fixed cost for each cost listed below.
-rent of building

Accepted Answer

A) discretionary 
B) committed 
A) discretionary 
B) committed

Question 20

Graphically, the ______________ is the point at which the cost line intercepts the cost (vertical) axis.

Accepted Answer

The answer of Graphically, the ______________ is the point at...

The salary of the college president is a _____ for a college.

Matching Select the appropriate cost behavior for each of the costs listed below. -controller's salary

Select the appropriate cost behavior for each of the costs listed below. -cost of lubricating machinery

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of car stereos

Variable costs within the relevant range

Taran Company incurred the following costs for the months of January and February. From the information above we can assume that

Variable costing and absorption costing income statements may differ because of their treatment of fixed factory overhead.

The cost formula for monthly depreciation cost in a factory is Total cost = $10,000 This cost is

Total variable costs

Which of the following is true if output increases by 20% and is still within the relevant range?

The cost of advertising is usually a discretionary fixed cost.

The _____ is a variable cost for Sam's restaurant business.

Matching Select the appropriate cost behavior for each of the costs listed below. -factory supplies

Inventory costs under variable costing include only direct materials, direct labor, and variable factory overhead.

The following cost formula was developed using monthly data for a retail clothing store. Total cost = $50,000 + ($250 × number of customers) The number $50,000:

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns) The term $87,100

What is the primary difference between variable and absorption costing?

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns) The term $210

Select the appropriate type of fixed cost for each cost listed below. -rent of building

Graphically, the ______________ is the point at which the cost line intercepts the cost (vertical) axis.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

Exam 3: Cost Behavior, Cost Forecasting, and Segmented Income Statements

The salary of the college president is a _____ for a college.

Matching Select the appropriate cost behavior for each of the costs listed below. -controller's salary

Select the appropriate cost behavior for each of the costs listed below. -cost of lubricating machinery

Select the appropriate cost behavior for the following costs incurred by an automobile manufacturer. -cost of car stereos

Variable costs within the relevant range

Taran Company incurred the following costs for the months of January and February. From the information above we can assume that

Variable costing and absorption costing income statements may differ because of their treatment of fixed factory overhead.

The cost formula for monthly depreciation cost in a factory is ​ Total cost = $10,000 ​ This cost is

Total variable costs

Which of the following is true if output increases by 20% and is still within the relevant range?

The cost of advertising is usually a discretionary fixed cost.

The _____ is a variable cost for Sam's restaurant business.

Matching Select the appropriate cost behavior for each of the costs listed below. -factory supplies

Inventory costs under variable costing include only direct materials, direct labor, and variable factory overhead.

The following cost formula was developed using monthly data for a retail clothing store. Total cost = $50,000 + ($250 × number of customers) The number $50,000:

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns) ​ The term $87,100

What is the primary difference between variable and absorption costing?

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns) ​ The term $210

Select the appropriate type of fixed cost for each cost listed below. -rent of building

Graphically, the ______________ is the point at which the cost line intercepts the cost (vertical) axis.

Introduction to Managerial Accounting

Basic Managerial Accounting Concepts

Job-Order Costing and Normal Cost Overhead Application

Activity-Based Costing and Management

Process Costing

Cost-Volume-Profit Analysis

Tactical Decision-Making and Relevant Costing

Profit Planning and Flexible Budgets

Standard Costing and Variance Analysis

Performance Evaluation and Decentralization

Capital Investment Decisions

Emerging Topics in Managerial Accounting: Sustainability, Quality Cost, Lean Accounting, International Issues, Enterprise Risk Management, the Managerial Accountant in Forensicfraud Accounting

Statement of Cash Flows

Financial Statement Analysis

Filters

The cost formula for monthly depreciation cost in a factory is Total cost = $10,000 This cost is

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns) The term $87,100

The following cost formula was developed using the monthly data for an accounting firm. Total cost = $87,100 + ($210 × number of tax returns) The term $210