Test
Bus412 - 215 Practice
Crea una cuenta gratis para terminar este test
Guarda tu progreso y consulta tu resultado final.
¿Ya tienes cuenta? Inicia sesión
Preguntas del test (35)
1Cost behavior refers to:
- AWhether a particular expense has been ethically incurred.
- BHow costs react to a change in the level of activity.
- CWhether a cost is incurred in a manufacturing, merchandising, or service company.
- DClassifying costs as either inventoriable or period costs.
2Which of the following is an example of a cost that is variable with respect to the number of units produced?
- ARent on the administrative office building.
- BRent on the factory building.
- CSalaries of top marketing executives.
- DDirect labor cost, where the direct labor workforce is adjusted to the actual production of the period.
3At a volume of 8,000 units, Pwerson Company incurred $32,000 in factory overhead costs, including $12,000 in fixed costs. If volume increases to 9,000 units and both 8,000 units and 9,000 units are within the same relevant range of activity, then the company would expect to incur total factory overhead costs of:
- A$20,000
- B$34,500
- C$32,000
- D$22,500
4A mixed cost is:
- AAlways an indirect cost.
- BNever an inventoriable cost.
- CA cost with fixed and variable elements.
- DAlways a direct cost.
5Which of the following is most often (or most likely to be) a mixed cost?
- AMonthly rent payment.
- BDirect materials.
- CManager's salary.
- DMonthly electric bill.
6Management believes that maintenance cost is a mixed cost that depends on machine-hours. Use the high-low method to estimate the variable and fixed components of this cost. Compute the variable component first and round off to the nearest whole cent. Compute the fixed component second and round off to the nearest whole dollar. These estimates would be closest to:
- A$8.86 per machine-hour; $20,577 per month
- B$8.81 per machine-hour; $20,718 per month
- C$0.11 per machine-hour; $48,192 per month
- D$13.41 per machine-hour; $6,631 per month
- E$15.48 per machine-hour; $48,103 per month
7Classifying a cost as either direct or indirect depends upon:
- AThe behavior of the cost in response to activity changes.
- BWhether an expenditure is avoidable or not in the future.
- CWhether the cost can be easily identified with the cost object.
- DWhether the cost is expensed in the period in which it is incurred.
8Which statement is true?
- AA direct cost of one cost object an be an indirect cost of another cost object.
- BAll fixed costs are indirect costs.
- CAll variable costs are direct costs.
- DAll direct costs are variable costs.
9A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of direct costs for the golf equipment line are:
- AMonthly lease payments for a specialized piece of equipment needed to manufacture the golf driver.
- BBeverages provided daily in the plant break room.
- CUtilities paid for the manufacturing plant.
- DSalaries of the clerical staff that work in the company administrative offices.
10A manufacturing plant produces two product lines: golf equipment and soccer equipment. An example of an indirect cost for the soccer equipment line is:
- AMaterial used to make soccer balls.
- BLabor to shape the leather used to make the soccer ball.
- CPlant supervisor.
- DShift supervisor for the soccer line.
11The costs of the Accounting Department at Central Hospital would be considered by the Surgery Department to be:
- Adirect costs.
- Bincremental costs.
- Copportunity costs.
- Dindirect costs.
12The nursing station on the fourth floor of Central Hospital is responsible for the care of orthopedic surgery patients. The costs of prescription drugs administered by the nursing station to patients should be classified as:
- Aoverhead costs of the nursing station.
- Bdirect patient costs.
- Cperiod costs of the hospital.
- Dindirect patient costs.
13Which one of the following items is a direct cost:
- AUtility costs of the administrative offices; the accounting department is the cost object.
- BThe salary of a maintenance supervisor in a multi-product manufacturing plant; Product B is the cost object
- CCustomer-service costs of a multi-product firm; Product A is the cost object.
- DThe salaries of payroll-check processors; the payroll-check-processing department is the cost object.
14Cost allocation is:
- AA function of cost tracing.
- BThe assignment of indirect costs to a chosen cost object.
- CThe process of tracking both direct and indirect costs associated with a cost object.
- DThe process of determining the actual cost of a cost object.
15Inventoriable costs are also known as:
- Afixed costs.
- Bproduct costs.
- Cconversion costs.
- Dvariable costs.
16Under Generally Accepted Accounting Principles (GAAP) for financial reporting, all of the following are typically classified as inventoriable costs except:
- Aproperty taxes on production equipment.
- Bwages of machine operators.
- Cinsurance on factory machinery.
- Dsalaries of the marketing staff.
17Fresh Wreath Corporation is a small business that manufactures wreaths according to customer specifications and ships them to customers using United Parcel Service (UPS). Which two terms below best describe the cost of shipping these wreaths?
- Avariable cost and product cost
- Bfixed cost and period cost
- Cvariable cost and period cost
- Dfixed cost and product cost
18Following the accounting principle of valuing assets at cost, cost accounting systems value raw material inventories at their cost of acquisition and work-in-process and finished-goods inventories at their cost of production.
- AVerdadero
- BFalso
19As goods are produced, product costs (direct material, direct labor, and manufacturing overhead) are accumulated in the:
- ACost of goods sold account
- BWork in process account
- CFinished goods account
- DMaterials account.
20A proper journal entry to record issuing raw materials to be used on a job would be:
- AOption D
- BOption C
- COption A
- DOption B
21What journal entry is made in a job-order costing system when $8,000 of materials are requisitioned for general factory use instead of for use in a particular job?
- AOption C
- BOption B
- COption D
- DOption A
22Which of the following entries would correctly record the application of overhead cost to products during a production process?
- AOption A
- BOption D
- COption C
- DOption B
23Hibshman Corporation bases its predetermined overhead rate on the estimated machine-hours for the upcoming year. At the beginning of the most recently completed year, the Corporation estimated the machine-hours for the upcoming year at 10,000 machine-hours. The estimated variable manufacturing overhead was $6.82 per machine-hour and the estimated total fixed manufacturing overhead was $230,200. Assuming Hibshman values inventory using full absorption costing, the predetermined overhead rate for the recently completed year was closest to:
- A$29.84 per machine-hour
- B$23.15 per machine-hour
- C$23.02 per machine-hour
- D$6.82 per machine-hour
24The following data have been recorded for recently completed Job 323 on its job cost sheet. Direct materials cost was $2,260. A total of 37 direct labor-hours and 141 machine-hours were worked on the job. The direct labor wage rate is $13 per labor-hour. The Corporation applies manufacturing overhead on the basis of machine-hours. The predetermined overhead rate is $14 per machine-hour. The total cost for the job on its job cost sheet would be:
- A$4,715
- B$2,287
- C$3,259
- D$2,741
25Contribution margin is the amount remaining after:
- Afixed expenses have been deducted from sales revenue.
- Bvariable expenses have been deducted from sales revenue.
- Cfixed expenses have been deducted from variable expenses.
- Dcost of goods sold has been deducted from sales revenues.
26If the company sells 4,700 units, its total contribution margin should be closest to:
- A$83,600
- B$18,373
- C$98,000
- D$89,300
27If the company sells 2,600 units, its total contribution margin should be closest to:
- A$107,100
- B$31,290
- C$130,500
- D$117,000
28Given these data, the unit contribution margin was:
- A$16
- B$2
- C$6
- D$4
29What is the company's unit contribution margin?
- A$0.23 per unit
- B$3.10 per unit
- C$1.80 per unit
- D$4.90 per unit
30The contribution margin ratio is equal to:
- ATotal manufacturing expenses/Sales.
- B1 − (Gross Margin/Sales).
- C1 − (Contribution Margin/Sales).
- D(Sales − Variable expenses)/Sales.
31The company's contribution margin ratio is closest to:
- A36.7%
- B63.3%
- C4.7%
- D29.4%
32Maack Corporation's contribution margin ratio is 16% and its fixed monthly expenses are $44,000. If the company's sales for a month are $299,000, what is the best estimate of the company's net operating income? Assume that the fixed monthly expenses do not change.
- A$255,000
- B$47,840
- C$207,160
- D$3,840
33Fixed expenses are $147,000 per month. The company is currently selling 2,000 units per month. The marketing manager would like to introduce sales commissions as an incentive for the sales staff. The marketing manager has proposed a commission of $13 per unit. In exchange, the sales staff would accept a decrease in their salaries of $22,000 per month. (This is the company's savings for the entire sales staff.) The marketing manager predicts that introducing this sales incentive would increase monthly sales by 400 units. What should be the overall effect on the company's monthly net operating income of this change?
- Aincrease of $16,800
- Bdecrease of $14,000
- Cincrease of $226,000
- Dincrease of $30,000
34The company is currently selling 4,000 units per month. Fixed expenses are $166,000 per month. Consider each of the following questions independently.
The marketing manager would like to cut the selling price by $7 and increase the advertising budget by $11,000 per month. The marketing manager predicts that these two changes would increase monthly sales by 800 units. What should be the overall effect on the company's monthly net operating income of this change?
- Aincrease of $79,400
- Bdecrease of $21,800
- Cdecrease of $6,200
- Dincrease of $21,800
35What is Garcia's break-even point next year in sales dollars?
- A$420,000
- B$240,000
- C$400,000
- D$375,000
Información
- Descripción
- College Bus412 Test sobre Bus412 - 215 Practice, creado por Nicholas Thieme el 17/01/2021.
- Autor
- Nicholas Thieme
- Idioma
- English
- Visitas
- 3
- Etiquetas
- Valoración
- Aún sin valoraciones Valora este test