1. College Computers, based in the U.S., is preparing its budgets to see whether it has sufficient cash to invest in a 1 point new project. Which of the following should direct the preparation of College Computer's management books? Tax authority, the Internal Revenue Service No specific requirements/guidelines O International Financial Reporting Standards (IFRS) O U.S. Generally Accepted Accounting Principles (GAAP) 2. Consider a company that makes cell phones and define one of its many different product lines as a cost object. 1 point Which of the following costs is a direct cost? O The salaries of the maintenance staff O The salary of a supervisor who oversees multiple lines O The rent for the workshop O The electronic components assembled on the line3. Company A has the following costs or expenses incurred during the month. 1 point -Rent for the workshop: $80,000 -Electricity in the workshop: $40,000 -Sales commissions: $60,000 -General office and administrative costs: $110,000 How much are the period costs? 110,000 O 290,000 250,000 O 170,000 4. Company A has incurred the following costs or expenses during the past month. Which is a fixed cost? 1 point O Salaries of the maintenance staff in the workshop paid on a monthly basis: $10,000 O Direct material: $500,000 O Wages of workers on the assembly line paid on a hourly basis: $200,000 O Electricity in the workshop: $40,0005. Company A has incurred the following costs or expenses during the past month. Which is a variable cost? 1 point O Rent for the workshop: $80,000 The salaries of workers who operate the equipment on the product line paid on a monthly basis: $50,000 General office and administrative costs: $110,000 O Sales commissions paid on a per unit-sold basis: $60,000 6. As mentioned, direct costs are not always variable costs. Consider a company that makes computers and define 1 point an individual tablet as a cost object. Which of the following costs is a direct, fixed cost? O The salary of a supervisor who oversees multiple lines paid on a monthly basis O Sales commissions paid on a per unit-sold basis The salaries of full-time workers who assemble the tablets paid on a monthly basis, assuming no overtime allowance has been incurred O The electricity costs that incur in the plant7. As mentioned, direct costs are not always product or manufacturing costs. Consider a company that makes 1 point computers and define an individual tablet as a cost object. Which of the following costs is a direct, period cost? O The salaries of workers who operate the equipment on the product line O The depreciation expense of a boiler shared in the workshop The electronic components assembled on the product line O Sales commissions paid on a per unit-sold basis 8. As mentioned, product or manufacturing costs are not always variable costs. Consider a company that makes 1 point home appliances and define an individual refrigerator as a cost object. Which of the following is a fixed, product cost? The rent for the office building Sales commissions paid on a per unit-sold basis O The rent for the workshop O Advertising expenses to promote the company's various brands9. Company A's total rent for the workshop varies based on the production output, shown as below: 1 point Output and Rent 100,000 80,000 Total Rent -O 60,000 40,000 O 0 1,000 2,000 3,000 4,000 Output Which of the following statements is correct? When the company's capacity is within 1,000 units, the rental cost is a variable cost When the company's capacity is within 2,000 units, the rental cost is a fixed cost When the company's capacity is within 3,000 units, the rental cost is a step cost O When the company's capacity is within 3,000 units, the rental cost is a fixed cost10. Company A's total royalty expenses for a specific product vary based on the total revenue (dollars in thousand), 1 point shown as below: Royalty Expenses based on Revenue 300,000 200,000 Royalty Expenses O 100,000 1,000 2,000 3,000 4,000 Revenue Which of the following statements is correct? O The variable cost per dollar revenue is fixed, regardless of where the revenue range lies O When the company's revenue is within 3,000, the royalty expenses are step costs O When the company's revenue is $1,500, the royalty expenses are greater than 150,000 O The variable cost per dollar revenue when the company's revenue is within the range 1,000-2,000 is smaller than that when revenue is within the range 2,000-3,00011. Below is a scatterplot of observations, where costs are on the vertical, ory-axis, and number of units are on the 1 point horizontal, or x-axis. Costs vs. Units 80 65 60 70 55 45 35 Cost 40 25 25 20 0 0 10 20 30 40 Unit Estimate cost functions using scatter plots. Which of the following statements is correct? The costs are variable costs When the total costs are 35, the units are estimated to be 17.5. O The costs are mixed costs. Total fixed cost is 5. ) When unit is 18, the total costs are estimated to be 36.12. When 1,000 units are produced and sold, the cost components are shown as below. If the number of units 1 point produced and sold increases to 1,500, assuming all costs are within the relevant range, which of the following statements is correct? 1,000 units produced 1,500 units produced Total fixed costs 45,000 A Total variable costs 5,000 B Fixed costs per unit 45 C Variable costs per unit 5 D Total costs per unit 50 Total costs 50,000 Total costs per unit (E) remain the same (50) () Total costs per unit (E) decrease because fixed costs per unit (C) decrease Fixed costs per unit (C) remain the same (45) Total costs (F) decrease because total costs per unit (E) decrease