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Question 20

Question 201 Point

Question 20

An analysis of past fixed maintenance costs indicates that maintenance cost is an average of $0.20 per machine hour at an activity level of 10,000 machine hours and $0.25 per machine hour at an activity level of 8,000 machine hours. Assuming that this activity is within the relevant range, what is the total expected maintenance cost if the activity level is 8,700 machine hours?

Option A

$2,000.

Option B

$1,740.

Option C

$400.

Option D

$2,250.

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Question 19

Question 191 Point

Question 19

What does conversion cost consist of?

Option A

Direct labour and manufacturing overhead cost.

Option B

Direct materials and direct labour cost.

Option C

Manufacturing overhead cost.

Option D

Direct labour cost.

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Question 18

Question 181 Point

Question 18

Green Company's costs for the month of August are as follows:

Direct materials used	$27,000
Direct labour	$34,000
Sales salaries	$14,000
Indirect labour	$10,000
Indirect materials	$15,000
General corporate administrative cost	$12,000
Taxes on manufacturing facility	$2,000
Rent on factory	$17,000

The beginning work-in-process inventory is $16,000 and the ending work-in-process inventory is $9,000. What is the cost of goods manufactured for the month?

Option A

$112,000.

Option B

$132,000.

Option C

$138,000.

Option D

$105,000.

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Question 17

Question 171 Point

Question 17

Which of the following would be an example of a performance report?

Option A

An income statement showing the amounts budgeted for the past month.

Option B

A production report showing budgeted and actual production for the past month.

Option C

A balance sheet showing the actual financial position at the end of the past month.

Option D

An income statement reporting actual results for the past month.

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Question 16

Question 161 Point

Question 16

Gargymal Company would like to estimate the variable and fixed components of its electrical costs and has compiled the following data for the last five months of operations:

	Machine Hours	Electrical Cost
August	1,000	$1,620
September	900	$1,510
October	1,500	$1,870
November	2,000	$1,950
December	1,300	$1,730

Using the high-low method, the estimated variable cost per machine hour for electricity is closest to which of the following?

Option A

$0.98 per hour.

Option B

$1.68 per hour.

Option C

$0.40 per hour.

Option D

$2.50 per hour.

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Question 15

Question 151 Point

Question 15

Given the cost formula Y = $12,000 + $6X, what is the total cost at an activity level of 8,000 units?

Option A

$12,000.

Option B

$60,000.

Option C

$20,000.

Option D

$48,000.

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Question 14

Question 141 Point

Question 14

Which of the following is NOT an example of a business risk?

Option A

An employee accessing unauthorized information.

Option B

A website malfunctioning.

Option C

Products harming customers.

Option D

A customer value proposition.

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Question 13

Question 131 Point

Question 13

Last month, a manufacturing company had the following operating results:

Beginning finished goods inventory	$74,000
Ending finished goods inventory	$73,000
Sales	$464,000
Gross margin	$52,000

What was the cost of goods manufactured for the month?

Option A

$463,000

Option B

$412,000

Option C

$413,000

Option D

$411,000

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Question 12

Question 121 Point

Question 12

When a decision is made among a number of alternatives, the benefit that is lost by choosing one alternative over another is called what?

Option A

Accrued cost.

Option B

Conversion cost.

Option C

Opportunity cost.

Option D

Realized cost.

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Question 11

Question 111 Point

Question 11

For a manufacturing company, which of the following is an example of a period cost rather than a product cost?

Option A

Wages of machine operators.

Option B

Depreciation of factory equipment.

Option C

Insurance on factory equipment.

Option D

Wages of salespersons.

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Question 10

Question 101 Point

Question 10

The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year:

Sales	$350,000
Variable Selling Expenses	$35,000
Fixed Selling Expenses	$25,000
Cost of Goods Sold	$160,000
Fixed Administrative Expenses	$55,000
Variable Administrative Expenses	$15,000

What is the contribution margin of Evans Retail Stores, Inc., (in #9 above) for the first quarter?

Option A

$210,000.

Option B

$300,000.

Option C

$190,000.

Option D

$140,000.

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Question 9

Question 91 Point

Question 9

Delta Merchandising, Inc., has provided the following information for the year just ended:

Net sales	$128,500
Beginning inventory	$24,000
Purchases	$80,000
Gross margin	$38,550

What was the ending inventory for the company at year-end?

Option A

$65,450.

Option B

$14,050.

Option C

$9,950.

Option D

$24,500.

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Question 8

Question 81 Point

Question 8

The following data pertain to activity and costs for two months:

	October	November
Activity level in units	5,000	10,000
Variable costs	$10,000	?
Fixed costs	30,000	?
Mixed costs	20,000	?
Total costs	$60,000	$75,000

Assuming that these activity levels are within the relevant range, what were the mixed costs for November?

Option A

$40,000.

Option B

$35,000.

Option C

$25,000.

Option D

$20,000.

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Question 7

Question 71 Point

Question 7

At an activity level of 10,000 units, total variable costs were $35,000 while total fixed costs were $20,800. If 16,000 units are produced and this activity is within the relevant range, which of the following statements is correct?

Option A

Total unit cost would equal $4.80.

Option B

Fixed cost per unit would equal $5.58.

Option C

Total costs would equal $55,800.

Option D

Total costs would equal $89,280.

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Question 6

Question 61 Point

Question 6

Which costs will change with a decrease in activity within the relevant range?

Option A

Total fixed costs and total variable costs.

Option B

Unit variable cost and unit fixed cost.

Option C

Unit fixed cost and total variable costs.

Option D

Unit fixed cost and total fixed costs.

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Question 5

Question 51 Point

Question 5

The following information has been provided by the Evans Retail Stores, Inc., for the first quarter of the year:

Sales	$350,000
Variable Selling Expenses	$35,000
Fixed Selling Expenses	$25,000
Cost of Goods Sold	$160,000
Fixed Administrative Expenses	$55,000
Variable Administrative Expenses	$15,000

What is the gross margin (Gross Profit) of Evans Retail Stores, Inc., for the first quarter?

Option A

$190,000.

Option B

$140,000.

Option C

$220,000.

Option D

$210,000.

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Question 4

Question 41 Point

Question 4

How would the wages of factory maintenance personnel usually be classified?

Option A

Indirect labour and manufacturing overhead.

Option B

Indirect labour and period cost

Option C

Direct labour and period cost.

Option D

Direct labour and manufacturing overhead.

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Question 3

Question 31 Point

Question 3

Budgeting is part of which of the following activities managers perform in organizations?

Option A

Planning.

Option B

Controlling.

Option C

Directing.

Option D

Motivating.

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Question 2

Question 21 Point

Question 2

Both financial and managerial accounting rely on the same underlying financial data but there are major differences. Managerial Accounting:

Option A

emphasizes relevance.

Option B

emphasizes financial consequences of past activities.

Option C

must follow GAAP.

Option D

emphasizes precision.

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Question 1

Question 11 Point

Question 1

How would the cost of rent for a manufacturing plant generally be classified?

Option A

Neither a product nor prime Cost.

Option B

A prime cost but not a product cost.

Option C

Both a prime cost and product cost.

Option D

A product cost but not a prime cost.