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1. Costs that arise from periodic budgeting decisions that-have no strong input-output relationship%22 are commonly called .
Depreciation, Direct materials., Indirect labor, Indirect Materials.,
2. Which one of the following best describes direct labor?
Direct labor and direct materials., Direct and indirect.labor. class page , Direct labor and factory overhead, Indirect labor and variable factory overhead .,
3. The cost associated with abnormal spoilage ordinarily is charged to
Evaluating revenue center performance., Aiding in variable costing for internal reporting., Measuring income and assets for extemal reporting, Budgeting cash and controlling expenditures.,
4. A cost that bears an observable and%27known relationship to a quantifiable activity base is a(n)
Rent., Depreciation., Property taxes., Power.,
5. . Butteco has the following cost components for 100,000 units of product for the year: Direct materials $200,000 Direct labor 100,000 Manufacturing overhead 200,000 Selling and administrative expense 150,000 All costs are variable except for $100,000 of manufacturing overhead and $100,000 of selling and administrative expenses. The total costs to produce and sell 110,000 units for the year are
$695,000, $715,000, $650,000, $540,000,
6. . The upper limit of a company%27s productive output capacity given its existing resources is called
Differential cost, Opportunity cost. online education , Incremental cost., Marginal cost,
7. The sum of the costs necessary to effect a one-unit increase in the activity level is a(n)
Increase by more than 10%25., Increase by 10%25, Increase by more than 5%25 but less than 10%25, Increase by 5%25 or less. ,
8. In target costing,
Scrap., Normal spoilage. , Abnormal spoilage, . Waste.,
9. If the beginning monthly balance of materials inventory was $37,000, the ending balance was. $39,500, and $257,800 of materials were used, the cost of materials purchased during the month was
$127,650, $101,400, $157,650., $130,150,
10. Parker Company pays each member of its sates staff a salary as well as a commission on each unit. sold. For the coming year, Parker plans to increase all salaries by 5%25 and to keep unchanged the commission paid on each unit sold. Because of increased demand, Parker expects the volume of sales to increase by 10%25. How will the total cost of sales salaries and commissions change for the coming year?
Theoritical capacity, Cycle-time capacity, Excess capacity web tool , Practical capacity,
11. . In cost terminology, conversion costs consist of
$297,300, $257,800, $255,300, $260,300,
12. . Ace, Inc. estimates its total materials handling costs at two production levels as follows: Cost Gallons $160,000 80,000 $132,000 60,000 What is the estimated total%27cost for handling 75,000 gallons?
Is one that is directly influenced at a given levelof managerial authority within a given timeperiod, Is an expense whose actual amount will notnormally differ from the standard (budget)amount., Is an expense that will remain semivariable intotal over the relevant range in a given timeperiod, Is an expected future expense that will bedifferent under various alternatives,
13. . Costs are allocated to cost objects in many ways and for ma ny reasons. Which one of the following is a purpose of cost allocation?
Engineered cost, Sunk cost, Indirect cost., Target cost.,
14. Which one of the following categories of cost ismost likely not considered a component of fixed factory overhead?
A. Inventory, Manufacturing overhead., A material variance account., A special loss account.,
15. A company has the following budget formula for annual electricity expense in its shop:`Expense = $7,200 %2b (Units produced x $0.60) If management expects to produce 20,000 units during February, the appropriate monthly flexible budget allowance for the purpose of performance evaluation should be
Discretionary costs, Differential costs class website , Opportunity costs., Committed costs,
16. The amount of raw materials left over from a production process or production cycle for which there is no further use is
A. The market price of the product is taken as agiven, Raw materials are recorded directly to cost ofgoods sold., Only raw materials, Iabor, and variable overhead cannot exceed a threshold target., Only raw materials cannot exceed a threshold target.,
17. A fixed cost that would be considered a direct cost is-
$7,200 . . , $12,000, $19,200, $12,600,
18. If the beginning balance for May of the materials inventory account was $27,500, the ending balance for May is $28,750, and $128,900 of materials were used during the month, the materials purchased during the month cost
$150,000, $165,000, $153,000, $146,000,
19. . A controllable expense
The rental cost of a warehouse to storeinventory when the cost objective is thePurchasing Department., A production supervisor%27s salary when the costobjective is the Production Department., A cost accountant%27s salary when the costobjective is a unit of product., Board of directors%27 fees when the costobjective is the Marketing Department.,