Costs that can be easily and cost-effectively traced to a cost object are known as

Select one:

a.indirect costs

b.hidden costs

c.direct costs

d.prime costs

Holly Incorporated, which produces and sells a single product, has provided the following data:

Sales: 2,000 units

Selling price: KD60 per unit

Variable expense: KD 40 per unit

Fixed expense: KD 20,000

If the sales volume decreases by 50% and the variable expense per unit increases by 15%,

net operating income is expected to:

Select one:

a.Decrease by KD 19,000

b.Decrease by KD 1,000

c.Decrease by KD 26,000

d.Decrease by KD 60,000

A recent income statement of Dagwood Corporation reported the following data:

Units sold: 8,000

Sales Revenues: KD 9,600,000

Variable Costs: KD 6,000,000

Fixed Costs: KD 2,600,000

If the company desired to earn a target net profit of KD 1,405,000, it would have to sell:

Select one:

a.8,600 units

b.5,778 units

c.8,900 units

d.10,160 units

Which of the following statements is true?

Select one:

a.Product costs affect only the income statement

b.Period costs affect only the balance sheet

c.Product costs eventually affect both the balance sheet and the income statement

d.Product costs affect only the balance sheet

The accounting records of Hillside Corporation revealed the following selected costs: Sales commissions, KD 40,000; plant supervision, KD 94,000; and administrative expenses, KD 185,000. Hillside's period costs total:

Select one:

a.KD 319,000

b.KD 94,000

c.KD 185,000

d.KD 225,000

Which account a manufacturing company, such as 'KDD', would have but not a service company, such as 'Aramex'?

Select one:

a.Salary payable

b.Advertising expense

c.Cost of goods sold

d.Retained earning

Which of the following is an example of a fixed cost?

Select one:

a.Surgical supplies used in a hospital's operating room

b.Paper used in the manufacturing of textbooks

c.Property taxes paid to the government

d.Gasoline consumed by salespersons' cars

Total costs are KD 180,000 when 10,000 units are produced; of this amount, variable costs are KD 64,000. What are the total costs when 13,000 units are produced?

Select one:

a.KD 214,800

b.KD 204,000

c.KD199,200

d.KD 234,000

Which of the following would not affect the break-even point?

Select one:

a.Selling price per unit

b.Number of units sold

c.Variable expense per unit

d.Total fixed expenses

Last month a manufacturing company had the following operating results:

Beginning finished goods inventory: KD 74,000

Ending finished goods inventory: KD 50,000

Sales: KD 438,000

Gross profit: KD 63,000

What was the cost of goods sold for the month?

Select one:

a.KD375,000

b.KD 351,000

c.KD414,000

d.KD399,000