Question 1

All of the following costs are included in inventory under absorption costing EXCEPT

Accepted Answer

A)  direct materials. 
B)  direct labor. 
C)  fixed selling expenses. 
D)  fixed factory overhead. 
A)  direct materials. 
B)  direct labor. 
C)  fixed selling expenses. 
D)  fixed factory overhead. C

Question 2

Which of the following could be considered a segment?

Accepted Answer

A)  division 
B)  product-line 
C)  sales territory 
D)  all of these 
A)  division 
B)  product-line 
C)  sales territory 
D)  all of these D

Question 3

Jamie Corporation had the following information:  
- What is the markup based on materials?

Accepted Answer

A)  400.0% 
B)  185.7% 
C)  42.9% 
D)  71.4% 
A)  400.0% 
B)  185.7% 
C)  42.9% 
D)  71.4% A

Question 4

Which of the following stages is characterized by rapid increases in sales and production?

Accepted Answer

A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Decline 
A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Decline

Question 5

Farr Company had the following information:  
- What is the markup based on cost of goods sold?

Accepted Answer

A)  50.0% 
B)  100.0% 
C)  37.5% 
D)  62.5% 
A)  50.0% 
B)  100.0% 
C)  37.5% 
D)  62.5%

Question 6

Grass Valley Mining mines three products.Gold ore sells for $1,000 per ton, variable costs are $600 per ton, and fixed mining costs are $250,000.The segment margin for 2011 was $(100,000).The management of Grass Valley Mining was considering dropping the mining of gold ore.Only one-half of the fixed expenses are direct and would be eliminated if the segment was dropped. What were the sales (in tons) for 2011?

Accepted Answer

A)  375 tons 
B)  1,000 tons 
C)  250 tons 
D)  200 tons 
A)  375 tons 
B)  1,000 tons 
C)  250 tons 
D)  200 tons

Question 7

Toshi Company incurred the following costs in manufacturing desk calculators:   During the period, the company produced and sold 1,000 units.
What is the inventory cost per unit using absorption costing?

Accepted Answer

A)  $104 
B)  $70 
C)  $84 
D)  $32 
A)  $104 
B)  $70 
C)  $84 
D)  $32

Question 8

The following information pertains to Mayberry Corporation:   What is the value of the ending inventory using the variable costing method?

Accepted Answer

A)  $240,000 
B)  $360,000 
C)  $350,000 
D)  $420,000 
A)  $240,000 
B)  $360,000 
C)  $350,000 
D)  $420,000

Question 9

Steele Corporation has the following information for January, February, and March 2011:   Production costs per unit (based on 10,000 units) are as follows:
  There were no beginning inventories for January 2011, and all units were sold for $50.Costs are stable over the three months.
What is the January ending inventory for Steele Corporation using the variable costing method?

Accepted Answer

A)  $260,000 
B)  $78,000 
C)  $108,000 
D)  $90,000 
A)  $260,000 
B)  $78,000 
C)  $108,000 
D)  $90,000

Question 10

Barmore Company has the following information pertaining to its two divisions for 2011:   Common expenses are $12,000 for 2011.
-
What is the segment margin for Division B?

Accepted Answer

A)  $155,000 
B)  $105,000 
C)  $55,000 
D)  $20,000 
A)  $155,000 
B)  $105,000 
C)  $55,000 
D)  $20,000

Question 11

Franklin Company's expected sales were 2,000 units at $100 per unit.During 2011, it had actual sales of 1,800 units at $110 per unit.Budgeted variable costs were $60 per unit. What is Franklin's sales price variance?

Accepted Answer

A)  $8,000 (U) 
B)  $20,000 (U) 
C)  $18,000 (F) 
D)  $2,000 (U) 
A)  $8,000 (U) 
B)  $20,000 (U) 
C)  $18,000 (F) 
D)  $2,000 (U)

Question 12

Perry Products is thinking of expanding their product line.Their current income statement is as follows:   The cost of the new product is $95 per unit made up of $50 of direct materials, $35 of direct labor and $10 of overhead per unit.What is the bid price assuming Perry utilizes a mark-up on direct materials?

Accepted Answer

A)  $70 
B)  $133 
C)  $119 
D)  $19.77 
A)  $70 
B)  $133 
C)  $119 
D)  $19.77

Question 13

Nordholm Construction Company builds houses.Each job requires a bid.Nordholm's bidding policy is to estimate the costs of materials, direct labor, and subcontractor's costs.These are totaled and a markup is applied to cover overhead and profit.In the coming year, Nordholm believes it will be the successful bidder on ten jobs with the following total revenues and costs:
   The residual will cover overhead and profits.
Required:

Accepted Answer

The answer of Nordholm Construction Company builds houses.Each job requires...

Question 14

Which of the following stages has revenues for the entire industry decreasing?

Accepted Answer

A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Decline 
A)  Introduction 
B)  Growth 
C)  Maturity 
D)  Decline

Question 15

Eastwood Company has the following information for 2011:   There were no beginning inventories.
-
What is the cost of ending inventory for Eastwood using the variable costing method?

Accepted Answer

A)  $300,000 
B)  $180,000 
C)  $120,000 
D)  $80,000 
A)  $300,000 
B)  $180,000 
C)  $120,000 
D)  $80,000

Question 16

Barmore Company has the following information pertaining to its two divisions for 2011:   Common expenses are $12,000 for 2011.
-
What is the net income for Barmore Company?

Accepted Answer

A)  $300,000 
B)  $20,500 
C)  $150,000 
D)  $32,500 
A)  $300,000 
B)  $20,500 
C)  $150,000 
D)  $32,500

Question 17

Anderson Company manufactures a variety of toys and games.John Boone, president, is disappointed in the sales of a new board game.The game sold only 10,000 units in 2011 when 30,000 were projected.Sales for 2012 look no better.At $100 per game, it is not a hot seller.Direct costs of the board game are $56 variable cost and $100,000 fixed.John is considering several options.Option One: Cut the price to $70 and perhaps sell 15,000 units.Option Two: Cut the price to $60, reduce material costs by $10, and cut advertising by $60,000.Anticipated volume for this option is 10,000 units.Option Three: Cut the price to $80 and include a $10 mail-in rebate offer.It is anticipated that 15,000 units could be sold and only 30 percent of the rebate coupons would be redeemed. 
-Which option is preferred?

Accepted Answer

A)  Option One 
B)  Option Two 
C)  Option Three 
D)  Options One and Three are equally preferred. 
A)  Option One 
B)  Option Two 
C)  Option Three 
D)  Options One and Three are equally preferred.

Question 18

Jamie Corporation had the following information:  
-  What would be the price for a product that has a cost of $500, assuming that the markup is based on cost of goods sold?

Accepted Answer

A)  $834 
B)  $625 
C)  $708 
D)  $2,000 
A)  $834 
B)  $625 
C)  $708 
D)  $2,000

Question 19

The following information pertains to Mayberry Corporation:   
-Absorption costing net income would be _______________ variable costing net income.

Accepted Answer

A)  $150,000 greater than 
B)  $150,000 less than 
C)  $240,000 less than 
D)  $240,000 greater than 
A)  $150,000 greater than 
B)  $150,000 less than 
C)  $240,000 less than 
D)  $240,000 greater than

Question 20

When monthly production volume is constant and sales volume is less than production, net income determined with variable costing procedures will

Accepted Answer

A)  always be greater than net income determined using absorption costing. 
B)  always be less than net income determined using absorption costing. 
C)  be equal to net income determined using absorption costing. 
D)  be equal to contribution margin per unit times units sold. 
A)  always be greater than net income determined using absorption costing. 
B)  always be less than net income determined using absorption costing. 
C)  be equal to net income determined using absorption costing. 
D)  be equal to contribution margin per unit times units sold.

All of the following costs are included in inventory under absorption costing EXCEPT

Which of the following could be considered a segment?

Jamie Corporation had the following information: - What is the markup based on materials?

Which of the following stages is characterized by rapid increases in sales and production?

Farr Company had the following information: - What is the markup based on cost of goods sold?

Toshi Company incurred the following costs in manufacturing desk calculators: During the period, the company produced and sold 1,000 units. What is the inventory cost per unit using absorption costing?

The following information pertains to Mayberry Corporation: What is the value of the ending inventory using the variable costing method?

Barmore Company has the following information pertaining to its two divisions for 2011: Common expenses are $12,000 for 2011. - What is the segment margin for Division B?

Franklin Company's expected sales were 2,000 units at $100 per unit.During 2011, it had actual sales of 1,800 units at $110 per unit.Budgeted variable costs were $60 per unit. What is Franklin's sales price variance?

Which of the following stages has revenues for the entire industry decreasing?

Eastwood Company has the following information for 2011: There were no beginning inventories. - What is the cost of ending inventory for Eastwood using the variable costing method?

Barmore Company has the following information pertaining to its two divisions for 2011: Common expenses are $12,000 for 2011. - What is the net income for Barmore Company?

Jamie Corporation had the following information: - What would be the price for a product that has a cost of $500, assuming that the markup is based on cost of goods sold?

The following information pertains to Mayberry Corporation: -Absorption costing net income would be _______________ variable costing net income.

When monthly production volume is constant and sales volume is less than production, net income determined with variable costing procedures will

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

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Exam 18: Pricing and Profitability Analysis

All of the following costs are included in inventory under absorption costing EXCEPT

Which of the following could be considered a segment?

Jamie Corporation had the following information: - What is the markup based on materials?

Which of the following stages is characterized by rapid increases in sales and production?

Farr Company had the following information: - What is the markup based on cost of goods sold?

Toshi Company incurred the following costs in manufacturing desk calculators: During the period, the company produced and sold 1,000 units. What is the inventory cost per unit using absorption costing?

The following information pertains to Mayberry Corporation: What is the value of the ending inventory using the variable costing method?

Barmore Company has the following information pertaining to its two divisions for 2011: Common expenses are $12,000 for 2011. - What is the segment margin for Division B?

Franklin Company's expected sales were 2,000 units at $100 per unit.During 2011, it had actual sales of 1,800 units at $110 per unit.Budgeted variable costs were $60 per unit. What is Franklin's sales price variance?

Which of the following stages has revenues for the entire industry decreasing?

Eastwood Company has the following information for 2011: There were no beginning inventories. - What is the cost of ending inventory for Eastwood using the variable costing method?

Barmore Company has the following information pertaining to its two divisions for 2011: Common expenses are $12,000 for 2011. - What is the net income for Barmore Company?

Jamie Corporation had the following information: - What would be the price for a product that has a cost of $500, assuming that the markup is based on cost of goods sold?

The following information pertains to Mayberry Corporation: -Absorption costing net income would be _______________ variable costing net income.

When monthly production volume is constant and sales volume is less than production, net income determined with variable costing procedures will

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters