FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Managerial Accounting and Cost Concepts

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 151

True/False

Review LaterAdd Note

Review Later

The relevant range concept is applicable to mixed costs.

Correct Answer

verified

Show Answer

Question 152

Multiple Choice

Review LaterAdd Note

Review Later

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 total variable cost is closest to:

A) $53,000
B) $65,000
C) $60,500
D) $77,000

Correct Answer

verified

Show Answer

Question 153

Multiple Choice

Review LaterAdd Note

Kesterson Corporation has provided the following information: If 6,000 units are produced, the total amount of direct manufacturing cost incurred is closest to:

A fixed cost is not constant per unit of product.

Fixed costs expressed on a per unit basis:

The University Store, Inc. is the major bookseller for four nearby colleges. An income statement for the first quarter of the year is presented below: On average, a book sells for $40.00. Variable selling expenses are $3.00 per book; the remaining selling expenses are fixed. The variable administrative expenses are 5% of sales; the remainder of the administrative expenses are fixed. The cost formula for selling and administrative expenses with "X" equal to the number of books sold is:

Asplund Corporation has provided the following information: Required: a. For financial reporting purposes, what is the total amount of product costs incurred to make 5,000 units? b. For financial reporting purposes, what is the total amount of period costs incurred to sell 5,000 units?

Schwiesow Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 5,000 units 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 ________.

Kneeland Corporation has provided the following information: If 10,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Lagle Corporation has provided the following information: For financial reporting purposes, the total amount of period costs incurred to sell 4,000 units is closest to:

Streif Inc., a local retailer, has provided the following data for the month of June: The cost of goods sold for June was:

Menk Corporation has provided the following information: Required: a. If 5,000 units are sold, what is the variable cost per unit sold? b. If 5,000 units are sold, what is the total amount of variable costs related to the units sold? c. If 5,000 units are produced, what is the total amount of manufacturing overhead cost incurred?

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.

Pedregon Corporation has provided the following information: If 4,000 units are produced, the total amount of manufacturing overhead cost is closest to:

Delongis Corporation, a merchandising company, reported the following results for June: Cost of goods sold is a variable cost in this company. The gross margin for June is:

Fiori 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: The incremental manufacturing cost that the company will incur if it increases production from 5,000 to 5,001 units is closest to:

For an automobile manufacturer, the cost of a driver's side air bag purchased from a supplier and installed in every automobile would best be described as a:

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