MGMT 027 Connect 02 lNTERNET PDF
MGMT 027 Connect 02 lNTERNET PDF
Manufacturing overhead
Indirect labor
Direct materials
Period costs
Challenge
Challenge
Costs that are shared by multiple cost objects in a company are known as ___ costs.
i f l common
sunk
opportunity
marginal
Challenge
Challenge
Cha'llenge
Opportunity
Fixed
Differential
l f l variable
Cha'llenge
na1rer~
Challenge
labor
costs.
indirect
direct
Challenge
Labor costs that can be easily and conveniently traced to specific products are defined as:
selling costs
Which of the following are most likely fixed costs (check all that apply)?
a
a
a
Administrative salaries
Factory rent
Challenge
Challenge
Within the relevant range of activity, variable costs (check all that apply):
a
a
vary in total
Costs that can be easily and conveniently traced to a specific product are called ___ costs.
i f l direct
indirect
Challenge
Challenge
Challenge
Challenge
The financial statement that organizes costs by their behavior instead of by their function is the:
balance sheet
A dress manufacturer would consider the cost of relatively inexpensive items like thread to be part of
(check all that apply):
a
a
administrative costs
indirect materials
direct materials
manufacturing overhead
Challenge
period costs
manufacturing costs
Challenge
Using the high-low method, the fixed cost is calculated (check all that apply):
Challenge
Challenge
When using the high low method, the change in cost divided by the change in units is:
total cost
total variable cost
the fixed cost per unit
Challenge
Challenge
Challenge
l f l quality
opportunity
marginal
sunk
Challenge
Which of the following statements are true (check all that apply)?
a
a
]
]
Cha'llenge
___ is based on the rise-over-run formula for the slope of a straight line.
Least-squares regression
The high-low method
A scattergraph
Challenge
Challenge
Challenge
A fixed cost remains fixed ___ within the relevant range of activity.
l f l intotal
per unit
Challenge
Challenge
v3riabl~
ChaUenge
Not for Sale or Rent!
Which of the following are differences between the traditional and contribution approach to income
statements (check all that apply)?
Traditional income statements focus on cost function. Contribution approach statements focus
on cost behavior.
Compared to traditional statements, contribution approach statements provide management with
a tool to make decision making easier.
The traditional income statement is for internal use, while the contribution approach income
statement is for external use.
Challenge
When using account analysis, an account is classified as either fixed or variable based on:
the equation Y = a + bX
engineering estimates of production methods
scattergraphs
Cha'llenge
___ costs are incurred in an attempt to lower the number of products manufactured with defects.
Prevention
Appraisal
Internal failure
Challenge
Challenge
Direct labor and overhead costs incurred to change raw materials into finished products are known
as
costs.
period
conversion
opportunity
prime
Challenge
a
a
is part of the organization where major operations are planned and carried out
is sometimes called a cost driver
Challenge
produced.
Product costs "attach" to units of product as they are purchased for resale or produced.
Product costs include all costs involved in making and selling a product.
Challenge
Challenge
Which of the following is not a COST CLASSIFICATION associated with decision making?
Sunk costs
Opportunity costs
Indirect costs
Differential costs
Cha'llenge
We Ship It, Inc. is considering changing its shipping methods, which they believe will attract new
customers. The followinf]; information relates to the present and proposed methods.
Present Proposed
Revenues
$140,000 $190,000
Variable costs $60,000 $70,000
Fixed costs
$20,000 $25,000
Calculate the differential net income or loss from the proposal.
Challenge
ChaUenge
Not for Sale or Rent!
lfl
lfl
Challenge
_ _ _ costs are incurred to identify defective products before they are shipped to customers.
External failure
l f l Appraisal
Internal failure
Prevention
Challenge
Challenge
A method that uses all the available data points to divide a mixed cost into its fixed and variable
components is called:
least-squares regression
J
generally provides an accurate estimate of true cost behavior during normal periods
is difficult to apply and requires a statistical software package
Challenge
Challenge
Challenge
a
a
manufacturing overhead
direct labor
Challenge
in total
per unit
Challenge
A non-profit organization is trying to determine the fixed and variable costs of providing meals. During
the first six months of the year, the following meals were served and the following costs were
incurred.
Month
January
February
March
April
May
Meals Costs
1,500 $5,200
1,700 $5,700
1,200 $4,100
1,100 $4,200
1,150 $4,250
1,650 $5,550
June
The cost equation using the high-low method is:
y = $1,450 + $2.50x.
y = $260 + $3.20x.
Challenge
blank.)
Challenge
Which of the following are considered nonmanufacturing costs (check all that apply)?
a
a
Sales commissions