FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Managerial Accounting in the Information Age

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

True/False

Review LaterAdd Note

Review Later

Variable costs in total increase or decrease in proportion with changes in the level of business activity.

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

Which of the following is a direct cost in relation to the cost of teaching the managerial accounting course in a college?

A) The cost of the paper that is given as handouts in the class
B) The cost of the electricity to light the classroom
C) The cost of the registration system
D) The cost of the financial aid department of the college

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

Rom Generators is in the process of preparing a production cost budget for August. Actual costs in July for the production of 60 generators were: $\begin{array} { l r } \text { Materials cost } & \$ 5,200 \\\text { Labor cost } & 2,600 \\\text { Rent } & 1,200 \\\text { Depreciation } & 1,700 \\\text { Other fixed costs } & 4,600 \\\text { Total } & \$ 15,300 \\\hline\end{array}$ Materials and labor are the only variable costs. If production and sales are budgeted to increase to 70 generators in August, how much is the expected total variable cost on the August budget?

Sunk costs

ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000. Variable costs are projected to be $17.50 per unit. Customer A offers to pay $10,000 to buy 400 lights from ProLight. Total fixed costs are $12,000 per year. This offer does not affect ProLight's other planned operations. How much is the incremental revenue associated with the offer from Customer A?

Since a manager can influence noncontrollable costs, they should be considered when evaluating a manager's performance.

Triatt Resort has 200 rooms. Each room rents at $130 per night and variable costs total $42 per room per night of occupancy. The fixed costs total $18,700 per month. If 70% of the rooms are occupied each of the 30 nights in June, how much will total variable costs be for June?

Supply chain management systems (SCM) allow suppliers some access to a company's databases so goods can more profitably be delivered to a company's customers.

Budgets can be used to communicate a company's goals to employees.

ProLight plans to sell 1,600 white lights that enhance indoor plant growth next year with total budgeted sales of $48,000 and estimated profit of $8,000. Variable costs are projected to be $17.50 per unit. Customer A offers to pay $10,000 to buy 400 lights from ProLight. Total fixed costs are $12,000 per year. This offer does not affect ProLight's other planned operations. What is the incremental cost associated with the offer from Customer A?

Harrison Carpets incurred the following costs for March when 3,000 square feet of carpet were produced and sold: . $18,500 for nylon thread used on carpet . $5,000 for scotch guard for carpet .$7,200 for jute backing to reinforce the carpet . $6,800 for glue to be used in the manufacturing process . $13,000 for insurance (half for administrative activities, half for production activities) . $9,000 for production employees' wages . $6,500 for rent and utilities in the factory How much are total variable costs if 3,500 square feet of carpet are produced and sold in April?

Sunk costs are never a consideration in incremental analysis.

Sweet Time Candies projects its factory rent to be $8,000 in August when 4,000 pounds of candy are expected to be produced. If rent is a fixed cost, and if production is expected to increase to 6,000 units in September, what is the expected cost of rent in September?

The controller is responsible for preparing reports for planning and evaluating company activities.

Which of the following costs will change when the level of business activity changes?

Financial accounting stresses accounting concepts and procedures that are relevant to preparing reports for internal users of accounting information.

A good code of ethics eliminates potential unethical behavior.

When using management by exception, a difference between actual costs and budgeted costs

Which of the following statements regarding performance measures is true?