1. Question 1 The cost of manufacturing overhead is considered to be a selling cost.
2. True
3. False

2 points

Question 2

1. The following data pertain to the Inntell Co.:
3. Materials inventory, 1/1/16.................
4. $48,400
6. Materials inventory, 12/31/16...............
7. 21,600
9. Materials purchases.........................
10. 71,600
12. Work in process inventory, 1/1/16..........
13. 63,600
15. Work in process inventory, 12/31/16.........
16. 49,200
18. Direct labor................................
19. 68,400
21. Manufacturing overhead......................
22. 97,200
24. Finished goods inventory, 1/1/16............
25. 66,400
27. Finished goods inventory, 12/31/16..........
28. 77,200
30. Cost of goods sold should be:
31. A.$267,600
32. B.$264,000
33. C.$240,800
34. D.$206,800

2 points

Question 3

1. Indirect materials are period costs.
2. True
3. False

2 points

Question 4

1. The Board of Directors is ultimately responsible to the:
2. A.external auditors.
3. B.stockholders.
4. C.president.
5. D.Internal Audit Department.

2 points

Question 5

1. A rule for management accounting might be: "different information for different purposes."
2. True
3. False

2 points

Question 6

1. Which statement is false? Indirect factory labor costs:
2. A.may include fringe benefits of factory workers.
3. B.are included in manufacturing overhead.
4. C.are included in administrative costs.
5. D.are costs that cannot or will not, for practical reasons, be traced to the product being manufactured.

2 points

Question 7

1. An important cost to measure in a manufacturing company is the cost to manufacture a product.
2. True
3. False

2 points

Question 8

1. Certain manufacturing costs may, for practical reasons, not be traced directly to the product manufactured.
2. True
3. False

2 points

Question 9

1. Product costs are inventoriable costs.
2. True
3. False

2 points

Question 10

1. Fixed costs vary directly in total amount with changes in the volume of production activity or output.
2. True
3. False

2 points

Question 11

1. The Catalina Company incurred the following labor costs:
3. Wages of assembly line workers......................
4. $40,000
6. Salaries of shop supervisors........................
7. 32,000
9. Sales commissions...................................
10. 22,000
12. Salary of the president.............................
13. 28,000
15. Wages of the factory building janitor...............
16. 8,800
18. How much of the above costs would be assigned to manufacturing overhead?
19. A.$68,800
20. B.$32,000
21. C.$62,800
22. D.$40,800

2 points

Question 12

1. Direct labor cost includes wages paid to:
2. A.the company president.
3. B.production machine operators.
4. C.factory supervisors.
5. D.sales managers.

2 points

Question 13

1. Period costs would include which of the following?
2. A.Annual depreciation on factory equipment
3. B.Overtime premium paid to production workers
4. C.Insurance premium on plant
5. D.Advertising costs per year

2 points

Question 14

1. Mixed costs contain a variable portion of cost that will be incurred even when the plant is idle and a fixed portion that will increase directly with production volume.
2. True
3. False

2 points

Question 15

1. Total variable costs tend to vary directly with changes in volume.
2. True
3. False

2 points

Question 16

1. CVP analysis can be used to find the necessary level of sales required to produce the desired profit.
2. True
3. False

2 points

Question 17

1. If a company wants to maximize net income, it should produce at its break-even point.
2. True
3. False

2 points

Question 18

1. The variable cost is $16 per unit for a product that sells for $20. For 2,000 units, what is the contribution margin and contribution margin per unit?
2. A.$ 8,000; $ 4
3. B.$ 8,000; $ 8
4. C.$12,000; $16
5. D.$20,000; $20

2 points

Question 19

1. The break-even point will change if either fixed costs change or the selling price per unit changes.
2. True
3. False

2 points

Question 20

1. The total contribution margin dollars at the break-even point are equal to the fixed costs.
2. True
3. False

2 points

Question 21

1. Mixed costs exhibit some of the characteristics of both fixed costs and variable costs.
2. True
3. False

2 points

Question 22

1. Cost-volume-profit analysis assumes that selling price, variable cost per unit, and total fixed costs fluctuate through the relevant range.
2. True
3. False

2 points

Question 23

1. Break-even analysis could be used by management:
2. A.to determine the additional sales volume required to cover a contemplated expenditure on advertising, all other factors remaining constant.
3. B.to determine the effect of a change in selling price on net income at various levels of sales.
4. C.to analyze the effect of substituting a production method that would decrease fixed costs but would at the same time increase variable costs per unit.
5. D.to accomplish all of the other answers.

2 points

Question 24

1. CVP does not require that costs be accurately classified as fixed or variable.
2. True
3. False

2 points

Question 25

1. A fixed cost would be:
2. A.direct materials.
3. B.sales commissions.
4. C.the plant manager's salary.
5. D.shown as a line sloping upward to the right on a graph showing total production costs vertically and units produced horizontally.

2 points

Question 26

1. In the Profit's Product Costs and Margin Clips video, the cost ot make an $85 arrangement at Maarse Florist is:
2. $22
3. $47
4. $60
5. $81

2 points

Question 27

1. In the Profit's Product Costs and Margin Clips video, how much over the course of a year does Marcus estimate My Big Fat Greek Gyro will make if they switch from Frozen to Fresh French Fries?
2. $10,000
3. $100,000
4. $25,000
5. $50,000

2 points

Question 28

1. In the Profit's Product Costs and Margin Clips video,what is the margin on a gyro from My Big Fat Greek Gyro?
2. 12%
3. 89%
4. 78%
5. 37%

2 points

Question 29

1. In the Profit's Product Costs and Margin Clips video,Maarse Florist had a $20 profit on an $85 arrangement.
2. True
3. False

2 points

Question 30

1. In the Profit's Product Costs and Margin Clips video,the food costs for an average lunch at Schuler's BBQ (including return visits) is:
2. $6.80
3. $1.50
4. $4.40
5. $5.50