Question 6

Contribution margin is:

sales less cost of goods sold

sales less variable production, variable selling, and variable administrative expenses

sales less operating expenses

sales less all variable and fixed expenses

Question 8

Managerial accounting:

is primarily concerned with providing information to external users

must always follow generally accepted accounting principles

provides information to help managers make decisions in the future

emphasizes objectivity and verifiability

Question 9

1pts

During October, Clyde Barrow Corporation incurred $62,000 of direct labor costs and $4,000 of indirect labor costs. The journal entry to record the accrual of these wages would include a:

debit to Work in Process of $62,000

debit to Work in Process of $66,000

debit to Work in Process of $4,000

credit to Work in Process of $66,000

Question 10

1pts

During December, $74,000 of raw materials were requisitioned from the storeroom for use in production. These raw materials included both direct and indirect materials. The indirect materials totaled $6,000. The journal entry to record the requisition from the storeroom would include a:

debit to Raw Materials of $74,000

debit to Manufacturing Overhead of $6,000

debit to Manufacturing Overhead of $74,000

debit to Work in Process of $74,000