1. The Garden Spot, based in the U.S., is preparing its management books to analyze why their landscape plant portfolio is suffering a loss. Which of the following should direct the preparation of The Garden Spot's management books? U.S. Generally Accepted Accounting Principles (GAAP) International Financial Reporting Standards (IFRS) Tax authority, the Internal Revenue Service No specific requirements/guidelines2. Consider a company that makes automotive parts and define one of its many different product lines as a cost object. Which of the following costs is a direct cost? O The depreciation expense of the equipment used exclusively on this line The rent for the workshop O The cost of a fire alarm system installed in the workshop The salaries of the maintenance staff3. Company A has the following costs or expenses incurred during the month. -Rent for the workshop: $80,000 -Electricity in the workshop: $40,000 -Sales commissions: $60,000 -General office and administrative costs: $110,000 How much are the period costs? O 170,000 O 250,000 O 290,000 O 110,0004. Company A has incurred the following costs or expenses during the past month. Which is a fixed cost? O Wages of workers on the assembly line paid on a hourly basis: $200,000 O Electricity in the workshop: $40,000 O Salaries of the maintenance staff in the workshop paid on a monthly basis: $10,000 O Direct material: $500,0005. Company A has incurred the following costs or expenses duringthe past month. Which is a variable cost? 0 Sales commissions paid on a per unit-sold basis: $60,000 6) General office and administrative costs: $110,000 0 The salaries of workers who operate the equipment on the product line paid on a monthly basis: $50,000 0 Rent for the workshop: $80,000 6. As mentioned, direct costs are not always variable costs. Consider a company that makes home appliances and define an individual refrigerator as a cost object. Which ofthe following costs is a direct, fixed cost? 0 Sales commissions paid on a per unit-sold basis 0 The electricity costs that incur in the plant 0 The salaries of full-time workers who assemble the refrigerators paid on a monthly basis, assuming no overtime allowance has been incurred O The salary ofthe maintenance staff in the workshop paid on the monthly basis 7. As mentioned, direct costs are not always product or manufacturing costs. Consider a company that manufactures cell phones and define an individual cell phone as a cost object. Which of the following costs is a direct,_period cost? 0 Depreciation of office equipment 0 The electricity costs that incur in the workshop 0 Sales commissions paid on a per unit-sold basis 0 The salaries of workers who operate the equipment on the product line 8. As mentioned, product or manufacturing costs are not always variable costs. Consider a company that makes home appliances and define an individual refrigerator as a cost object. Which of the following is a fixed, product cost? The rent for the office building O The rent for the workshop O Advertising expenses to promote the company's various brands O Sales commissions paid on a per unit-sold basis9. Company A's total rent for the workshop varies based on the production output, shown as below:\fWhich of the following statements is correct? O When the company's capacity is within 2,000 units, the rental cost is a fixed cost O When the company's capacity is within 3,000 units, the rental cost is a step cost O When the company's capacity is within 1,000 units, the rental cost is a variable cost O When the company's capacity is within 3,000 units, the rental cost is a fixed cost10. Company A's total royalty expenses for a specific product vary based on the total revenue (dollars in thousand), shown as below:Royalty Expenses based on Revenue 300,000 O 200,000 Royalty Expenses O 100,000 O O 1,000 2,000 3,000 4,000 RevenueWhich of the following statements is correct? 0 When the company's revenue is within 2,000, the royalty expenses are step costs 0 The variable cost per dollar revenue when the company's revenue is within the range LOGO2,000 is smaller than that when revenue is within the range 2,0003,000 0 When the company's revenue is $1,500, the royalty expenses are greater than 150,000 0 The variable cost per dollar revenue is xed, regardless ofwhere the revenue range lies 11. Below is a scatterplot of observations, where costs are on the vertical, or yaxis, and number of units are on the 1 point horizontal, or xaxis. Costs vs. Units 80 65 60 70 55 45 Cost 40 35 25 25 20 0 O 10 20 30 40 UnitEstimate cost functions using scatter plots. Which of the following statements is correct? O The costs are variable costs O When unit is 18, the total costs are estimated to be 36. O The costs are mixed costs. Total fixed cost is 5. O When the total costs are 35, the units are estimated to be 17.5.12. When 1,000 units are produced and sold, the cost components are shown as below. If the number of units 1 point produced and sold increases to 1,500, assuming all costs are within the relevant range, which of the following statements is correct? 1,000 units produced 1,500 units produced Total fixed costs 45,000 A Total variable costs 5,000 B Fixed costs per unit 45 Variable costs per unit 5 D Total costs per unit 50 m Total costs 50,000 F O Fixed costs per unit (C) remain the same (45) O Total costs (F) increase by 25,000 (50*500) O Total costs per unit (E) remain the same (50) O Fixed costs per unit (C) decrease by 15