FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 1: Managerial Accounting and Cost Concepts

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 71

Multiple Choice

Review LaterAdd Note

Review Later

The term differential cost refers to:

A) a difference in cost which results from selecting one alternative instead of another.
B) the benefit forgone by selecting one alternative instead of another.
C) a cost which does not involve any dollar outlay but which is relevant to the decision-making process.
D) a cost which continues to be incurred even though there is no activity.

E) A) and D)
F) B) and C)

Correct Answer

verified

Show Answer

Question 72

Multiple Choice

Review LaterAdd Note

Review Later

The following costs were incurred in September: Conversion costs during the month totaled:

A) $50,000
B) $59,000
C) $137,000
D) $67,000

E) None of the above
F) B) and D)

Correct Answer

verified

Show Answer

Question 73

Multiple Choice

Review LaterAdd Note

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

What would be the total variable inspection cost at an activity level of 8,100 machine-hours in a month? Assume that this level of activity is within the relevant range.

Each of the following would be a period cost except:

What would be the average fixed cost per unit at an activity level of 3,500 units? Assume that this level of activity is within the relevant range.

In order for a cost to be variable it must vary with either units produced or units sold.

The following data pertains to activity and costs for two months: Assuming that these activity levels are within the relevant range, the mixed cost for July was:

The best estimate of the total variable manufacturing cost per unit is:

What is the total amount of the costs listed above that are direct costs of the Cosmetics Department?

In making the decision to buy the model 240 machine rather than the model 370 machine, the sunk cost was:

Depreciation is always considered a product cost for external financial reporting purposes in a manufacturing firm.

The gross margin for July is:

The management of Harrigill Corporation would like to have a better understanding of the behavior of its inspection costs. The company has provided the following data: Management believes that inspection cost is a mixed cost that depends on direct labor-hours. Required: Estimate the variable cost per direct labor-hour and the fixed cost per month using the high-low method. Show your work! Round off all calculations to the nearest whole cent.

The following costs were incurred in September: Prime costs during the month totaled:

An example of a committed fixed cost is:

Bakker Corporation has provided the following production and average cost data for two levels of monthly production volume. The company produces a single product. The best estimate of the total variable manufacturing cost per unit is:

Automation results in a shift away from variable costs toward more fixed costs.

The best estimate of the total contribution margin when 6,300 units are sold is:

Given the cost formula, Y = $9,000 + $2.50X, total cost for an activity level of 3,000 units would be: