Cost objects include:

Select one:

a. markets

b. Company

c. products

d. All of these answers are not correct

The following information pertains to the Salam Corporation:

Beginning work-in-process inventory $ 20,000

Ending work-in-process inventory 15,000

Beginning finished goods inventory 40,000

Ending finished goods inventory 50,000

Cost of goods manufactured 200,000

What is cost of goods sold?

Select one:

a. $210,000

b. $190,000

c. $150,000

d. $225,000

sector companies purchase materials and components and convert them into finished goods.

Select one:

a. Merchandising

b. Service

c. Manufacturing

d. Professional

The variable cost per unit of a product X may no stay the same throughout the relevant range of production.

Select one:

True

False

Which of the following statements about the direct/indirect cost classification is true?

Select one:

a. Indirect costs are always allocated.

b. The design of operations affects the direct/indirect classification.

c. The direct/indirect classification depends on the choice of cost object.

d. All of these answers are correct

Assigning direct costs poses less problems than assigning indirect costs.

Select one:

True

False

In the manufacturing sector:

Select one:

a. fixed overhead costs are subtracted to determine gross margin

b. fixed overhead costs are subtracted to determine contribution margin

c. only variable costs are subtracted to determine gross margin

d. all operating costs are subtracted to determine contribution margin

Answer the following questions using the information below:

Noor Company reported the following:

Manufacturing costs $30,000

Units manufactured 1000

Units sold 35,000 units sold for $60 per unit

Beginning inventory 0 units

1) What is the amount of gross margin?

Select one:

a. $1,050,000

b. $1,550,000

c. $1,080,000

d. $2,100,000

Key success factors include cost, quality, timeliness, and innovation.

Select one:

True

False

Which of the following items is NOT an assumption of CVP analysis?

Select one:

a. All revenues and costs can be added and compared without taking into account the time value of money.

b. Total costs can be divided into a fixed component and a component that is variable with respect to the level of output

c. When graphed, total costs curve upward.

d. The unit-selling price is known and constant.