Question 1

The following data have been collected for four different cost items.  Which of the following classifications of these cost items by cost behavior is correct?

Accepted Answer

A)   Choice A
B)   Choice B
C)   Choice C
D)   Choice DE) B) and C)
F) All of the above

Question 2

The salary paid to the president of a company would be classified on the income statement as a(n) :

Accepted Answer

A)   administrative expense.
B)   direct labor cost.
C)   manufacturing overhead cost.
D)   selling expense.E) B) and D)
F) A) and C)

Question 3

Gabel Inc. is a merchandising company. Last month the company's merchandise purchases totaled $63,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month?

Accepted Answer

A)   $91,000
B)   $63,000
C)   $65,000
D)   $61,000E) A) and B)
F) None of the above

Question 4

Manufacturing overhead includes:

Accepted Answer

A)   all direct material, direct labor and administrative costs.
B)   all manufacturing costs except direct labor.
C)   all manufacturing costs except direct labor and direct materials.
D)   all selling and administrative costs.E) A) and B)
F) A) and C)

Question 5

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $84,000. The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000. What was the total amount of the company's merchandise purchases for the month?

Accepted Answer

A)   $86,000
B)   $82,000
C)   $84,000
D)   $122,000E) B) and C)
F) A) and D)

Question 6

Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows:  If 5,000 units are sold, the variable cost per unit sold is closest to:

Accepted Answer

A)   $17.15
B)   $11.00
C)   $14.00
D)   $12.50E) A) and D)
F) B) and C)

Question 7

Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows:  If 5,000 units are sold, the variable cost per unit sold is closest to:

Accepted Answer

A)   $13.00
B)   $10.60
C)   $12.10
D)   $15.40E) None of the above
F) A) and D)

Question 8

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:  What is the total of the direct costs above?

Accepted Answer

A)   $65,000
B)   $112,000
C)   $155,000
D)   $202,000E) B) and C)
F) A) and C)

Question 9

All of the following are examples of product costs except:

Accepted Answer

A)   depreciation on the company's retail outlets.
B)   salary of the plant manager.
C)   insurance on the factory equipment.
D)   rental costs of factory equipment.E) A) and B)
F) A) and D)

Question 10

A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

Accepted Answer

A) True 
 B)False

Question 11

At an activity level of 9,000 machine-hours in a month, Moffatt Corporation's total variable maintenance cost is $390,240 and its total fixed maintenance cost is $368,280. What would be the total variable maintenance cost at an activity level of 9,300 machine-hours in a month? Assume that this level of activity is within the relevant range. (Round intermediate calculations to 2 decimal places.)

Accepted Answer

A)   $758,520
B)   $403,248
C)   $390,240
D)   $380,556E) C) and D)
F) A) and B)

Question 12

Dizzy Amusement Park is open from 8:00 am till midnight every day of the year. Dizzy charges its patrons a daily entrance fee of $30 per person which gives them unlimited access to all of the park's 35 rides. Dizzy gives out a free T-shirt to every 100th customer entering the park. The cost of this T-shirt would best be described as a:

Accepted Answer

A)   fixed cost
B)   mixed cost
C)   step-variable cost
D)   true variable costE) B) and D)
F) B) and C)

Question 13

The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n) :

Accepted Answer

A)   period cost.
B)   direct material cost.
C)   indirect material cost.
D)   opportunity cost.E) All of the above
F) C) and D)

Question 14

Lagle Corporation has provided the following information:  If 5,000 units are sold, the variable cost per unit sold is closest to:

Accepted Answer

A)   $14.60
B)   $11.50
C)   $9.55
D)   $11.55E) A) and B)
F) A) and C)

Question 15

Wessner Corporation has provided the following information:  If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Accepted Answer

A)   $18,000
B)   $19,250
C)   $18,625
D)   $20,500E) A) and D)
F) A) and C)

Question 16

Management of Mcgibboney Corporation has asked your help as an intern in preparing some key reports for November. Direct materials cost was $42,000, direct labor cost was $25,000, and manufacturing overhead was $62,000. Selling expense was $21,000 and administrative expense was $38,000. The prime cost for November was:

Accepted Answer

A)   $79,000
B)   $59,000
C)   $67,000
D)   $87,000E) B) and C)
F) B) and D)

Question 17

Macy Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows:  If the selling price is $23.50 per unit, the contribution margin per unit sold is closest to:

Accepted Answer

A)   $9.65
B)   $6.50
C)   $15.30
D)   $12.35E) A) and B)
F) A) and C)

Question 18

Which of the following statements is correct in describing manufacturing overhead?

Accepted Answer

A)   Manufacturing overhead when combined with direct materials cost forms conversion cost.
B)   Manufacturing overhead consists of all manufacturing cost except for prime cost.
C)   Manufacturing overhead is a period cost.
D)   Manufacturing overhead when combined with direct labor cost forms prime cost.E) All of the above
F) None of the above

Question 19

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year:  What is the total of the product costs above?

Accepted Answer

A)   $0
B)   $69,000
C)   $155,000
D)   $159,000E) All of the above
F) None of the above

Question 20

Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows:  If 4,000 units are sold, the total variable cost is closest to:

Accepted Answer

A)   $67,000
B)   $47,600
C)   $51,400
D)   $58,800E) All of the above
F) A) and D)

Exam 1: Managerial Accounting and Cost Concepts

Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows: If 5,000 units are sold, the variable cost per unit sold is closest to:

Correct Answer
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A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

Correct Answer
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Lagle Corporation has provided the following information: If 5,000 units are sold, the variable cost per unit sold is closest to:

Correct Answer
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Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 4,000 units are sold, the total variable cost is closest to:

Correct Answer
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Manufacturing overhead includes:

Correct Answer
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Correct Answer
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Wessner Corporation has provided the following information: If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Correct Answer
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Macy Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows: If the selling price is $23.50 per unit, the contribution margin per unit sold is closest to:

Correct Answer
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The following data have been collected for four different cost items. Which of the following classifications of these cost items by cost behavior is correct?

Correct Answer
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Correct Answer
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All of the following are examples of product costs except:

Correct Answer
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Correct Answer
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The salary paid to the president of a company would be classified on the income statement as a(n) :

Correct Answer
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Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the product costs above?

Correct Answer
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Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are sold, the variable cost per unit sold is closest to:

Correct Answer
verified

Gabel Inc. is a merchandising company. Last month the company's merchandise purchases totaled $63,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month?

Correct Answer
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Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $84,000. The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000. What was the total amount of the company's merchandise purchases for the month?

Correct Answer
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The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n) :

Correct Answer
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Which of the following statements is correct in describing manufacturing overhead?

Correct Answer
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Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the direct costs above?

Correct Answer
verified

Exam 1: Managerial Accounting and Cost Concepts

Paolucci Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows: If 5,000 units are sold, the variable cost per unit sold is closest to:

Correct AnswerverifiedShow Answer

A fixed cost is a cost whose cost per unit varies as the activity level rises and falls.

Correct AnswerverifiedShow Answer

Lagle Corporation has provided the following information: If 5,000 units are sold, the variable cost per unit sold is closest to:

Correct AnswerverifiedShow Answer

Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it produces and sells 5,000 units, its average costs per unit are as follows: If 4,000 units are sold, the total variable cost is closest to:

Correct AnswerverifiedShow Answer

Manufacturing overhead includes:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Wessner Corporation has provided the following information: If 5,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Correct AnswerverifiedShow Answer

Macy Corporation's relevant range of activity is 4,000 units to 8,000 units. When it produces and sells 6,000 units, its average costs per unit are as follows: If the selling price is $23.50 per unit, the contribution margin per unit sold is closest to:

Correct AnswerverifiedShow Answer

The following data have been collected for four different cost items. Which of the following classifications of these cost items by cost behavior is correct?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

All of the following are examples of product costs except:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The salary paid to the president of a company would be classified on the income statement as a(n) :

Correct AnswerverifiedShow Answer

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the product costs above?

Correct AnswerverifiedShow Answer

Adens Corporation's relevant range of activity is 2,000 units to 6,000 units. When it produces and sells 4,000 units, its average costs per unit are as follows: If 5,000 units are sold, the variable cost per unit sold is closest to:

Correct AnswerverifiedShow Answer

Gabel Inc. is a merchandising company. Last month the company's merchandise purchases totaled $63,000. The company's beginning merchandise inventory was $13,000 and its ending merchandise inventory was $15,000. What was the company's cost of goods sold for the month?

Correct AnswerverifiedShow Answer

Haack Inc. is a merchandising company. Last month the company's cost of goods sold was $84,000. The company's beginning merchandise inventory was $20,000 and its ending merchandise inventory was $18,000. What was the total amount of the company's merchandise purchases for the month?

Correct AnswerverifiedShow Answer

The cost of lubricants used to grease a production machine in a manufacturing company is an example of a(n) :

Correct AnswerverifiedShow Answer

Which of the following statements is correct in describing manufacturing overhead?

Correct AnswerverifiedShow Answer

Vignana Corporation manufactures and sells hand-painted clay figurines of popular sports heroes. Shown below are some of the costs incurred by Vignana for last year: What is the total of the direct costs above?

Correct AnswerverifiedShow Answer

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