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Question 1 The cost of manufacturing overhead is considered to be a selling cost. True False 2 points Question 2 The following data pertain to
- Question 1 The cost of manufacturing overhead is considered to be a selling cost.
- True
- False
2 points
Question 2
- The following data pertain to the Inntell Co.:
- Materials inventory, 1/1/16.................
- $48,400
- Materials inventory, 12/31/16...............
- 21,600
- Materials purchases.........................
- 71,600
- Work in process inventory, 1/1/16..........
- 63,600
- Work in process inventory, 12/31/16.........
- 49,200
- Direct labor................................
- 68,400
- Manufacturing overhead......................
- 97,200
- Finished goods inventory, 1/1/16............
- 66,400
- Finished goods inventory, 12/31/16..........
- 77,200
- Cost of goods sold should be:
- A.$267,600
- B.$264,000
- C.$240,800
- D.$206,800
2 points
Question 3
- Indirect materials are period costs.
- True
- False
2 points
Question 4
- The Board of Directors is ultimately responsible to the:
- A.external auditors.
- B.stockholders.
- C.president.
- D.Internal Audit Department.
2 points
Question 5
- A rule for management accounting might be: "different information for different purposes."
- True
- False
2 points
Question 6
- Which statement is false? Indirect factory labor costs:
- A.may include fringe benefits of factory workers.
- B.are included in manufacturing overhead.
- C.are included in administrative costs.
- D.are costs that cannot or will not, for practical reasons, be traced to the product being manufactured.
2 points
Question 7
- An important cost to measure in a manufacturing company is the cost to manufacture a product.
- True
- False
2 points
Question 8
- Certain manufacturing costs may, for practical reasons, not be traced directly to the product manufactured.
- True
- False
2 points
Question 9
- Product costs are inventoriable costs.
- True
- False
2 points
Question 10
- Fixed costs vary directly in total amount with changes in the volume of production activity or output.
- True
- False
2 points
Question 11
- The Catalina Company incurred the following labor costs:
- Wages of assembly line workers......................
- $40,000
- Salaries of shop supervisors........................
- 32,000
- Sales commissions...................................
- 22,000
- Salary of the president.............................
- 28,000
- Wages of the factory building janitor...............
- 8,800
- How much of the above costs would be assigned to manufacturing overhead?
- A.$68,800
- B.$32,000
- C.$62,800
- D.$40,800
2 points
Question 12
- Direct labor cost includes wages paid to:
- A.the company president.
- B.production machine operators.
- C.factory supervisors.
- D.sales managers.
2 points
Question 13
- Period costs would include which of the following?
- A.Annual depreciation on factory equipment
- B.Overtime premium paid to production workers
- C.Insurance premium on plant
- D.Advertising costs per year
2 points
Question 14
- 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.
- True
- False
2 points
Question 15
- Total variable costs tend to vary directly with changes in volume.
- True
- False
2 points
Question 16
- CVP analysis can be used to find the necessary level of sales required to produce the desired profit.
- True
- False
2 points
Question 17
- If a company wants to maximize net income, it should produce at its break-even point.
- True
- False
2 points
Question 18
- The variable cost is $16 per unit for a product that sells for $20. For 2,000 units, what is the contribution margin and contribution margin per unit?
- A.$ 8,000; $ 4
- B.$ 8,000; $ 8
- C.$12,000; $16
- D.$20,000; $20
2 points
Question 19
- The break-even point will change if either fixed costs change or the selling price per unit changes.
- True
- False
2 points
Question 20
- The total contribution margin dollars at the break-even point are equal to the fixed costs.
- True
- False
2 points
Question 21
- Mixed costs exhibit some of the characteristics of both fixed costs and variable costs.
- True
- False
2 points
Question 22
- Cost-volume-profit analysis assumes that selling price, variable cost per unit, and total fixed costs fluctuate through the relevant range.
- True
- False
2 points
Question 23
- Break-even analysis could be used by management:
- A.to determine the additional sales volume required to cover a contemplated expenditure on advertising, all other factors remaining constant.
- B.to determine the effect of a change in selling price on net income at various levels of sales.
- 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.
- D.to accomplish all of the other answers.
2 points
Question 24
- CVP does not require that costs be accurately classified as fixed or variable.
- True
- False
2 points
Question 25
- A fixed cost would be:
- A.direct materials.
- B.sales commissions.
- C.the plant manager's salary.
- 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
- In the Profit's Product Costs and Margin Clips video, the cost ot make an $85 arrangement at Maarse Florist is:
- $22
- $47
- $60
- $81
2 points
Question 27
- 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?
- $10,000
- $100,000
- $25,000
- $50,000
2 points
Question 28
- In the Profit's Product Costs and Margin Clips video,what is the margin on a gyro from My Big Fat Greek Gyro?
- 12%
- 89%
- 78%
- 37%
2 points
Question 29
- In the Profit's Product Costs and Margin Clips video,Maarse Florist had a $20 profit on an $85 arrangement.
- True
- False
2 points
Question 30
- 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:
- $6.80
- $1.50
- $4.40
- $5.50
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