| Statements I, II, and III are true. (TCO B) Under a job-order costing system, the product being manufactured | passes from one manufacturing department to the next before being completed. | | can be custom manufactured. | | has a unit cost that is easy to calculate by dividing total production costs by the units produced. TCO A) Wages paid to an assembly line worker in a factory are a | Prime Cost YES.....Conversion Cost YES. | | Prime Cost YES.....Conversion Cost NO. | | Prime Cost NO....Conversion Cost NO. | | Prime Cost NO.....Conversion Cost YES. TCO A) Total fixed costs | will increase with increases in activity. | | will decrease with increases in activity. | | are not affected by activity. | | should be ignored in making decisions because they can never change. (TCO C) To obtain the break-even point in terms of dollar sales, total fixed expenses are divided by which of the following? | Variable expense per unit | | Variable expense per unit/selling price per unit | | (Selling price per unit - variable expense per unit) / selling price per unit (TCO D) In an income statement prepared using the variable costing method, fixed manufacturing overhead would | be used in the computation of the contribution margin. | | be used in the computation of net operating income but not in the computation of the contribution margin. | | be treated the same as variable manufacturing overhead. (TCO C) The contribution margin ratio always decreases when the | variable expenses as a percentage of net sales increase. | | variable expenses as a percentage of net sales decrease. (TCO B) The FIFO method only provides a major advantage over the weighted-average method in that | the calculation of equivalent units is less complex under the FIFO method. | | the FIFO method treats units in the beginning inventory as if they were started and completed during the current period. | | the FIFO method provides measurements of work done during the current period. | | the weighted-average method ignores units in the beginning and ending work-in-process inventories. | | | | | | | |