Chapter 9 test bank with answers Horngren\'s Cost Accounting: A Managerial Emphasis, 16th Global Edition PDF

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Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren)Chapter 9 Inventory Costing and Capacity Analysis9 Objective 9. Which of the following costs is inventoried when using variable costing? A) rent on factory building B) electricity consumed in manufacturing process C) sales commiss...

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Cost Accounting: A Managerial Emphasis, 16e, Global Edition (Horngren) Cha pt e r9 I nve nt or yCos t i nga ndCa pac i t yAna l ys i s 9 . 1 Obj e c t i ve9 . 1 1 )Whi c hoft hef ol l o wi ngc os t si si nve nt or i e dwhe nus i ngva r i abl ec os t i ng ? A)r e ntonf a c t or ybui l di ng B)e l e c t r i c i t yc ons ume di nma nuf a c t ur i ngpr oc e s s C)s a l e sc ommi s s i onpa i done a c hs a l e D)a dve r t i s i ngc os t si nc ur r e df ort hepr oduc t Ans we r :B Di ff: 1 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

2 )Whi c hoft hef ol l owi ngc os t si si nve nt or i e dwhe nus i nga bs or pt i onc os t i ng? A)va r i a bl es e l l i ngc os t s B)fix e dadmi ni s t r a t i vec os t s C)va r i abl ema nuf a c t ur i ngc os t s D)fix e ds e l l i ngc os t s Ans we r :C Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

3 )Whi c hoft hef ol l o wi ngbe s tde s c r i be show fix e dc os tar et r e a t e di navar i a bl ec os tme t hod? A)The ya r epa r toft hepr oduc tc os t B)The ya r ee x c l ude df r om i nve nt or yc os tanda r et r e a t e daspe r i odc os t s C)The yar ea l l oc a t e dt ot hepr oduc tc os tus i ngade nomi na t or l e ve lc apa c i t yc hoi c e D)The ya r ec l a s s i fie da snonma nuf ac t ur i ngc os t s Ans we r :B Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

4 )__ _ _ __ __i same t hodofi nve nt or yc os t i ngi nwhi c hal lvar i a bl ema nuf a c t ur i ngc os t sa nda l lfix e d ma nuf a c t ur i ngc os t sa r ei nc l ude da si nve nt or i abl ec os t s . A)Va r i a bl ec os t i ng B)Mi x e dc os t i ng C)Abs or pt i onc os t i ng D)St a ndar dc os t i ng Ans we r :C Di ff: 2 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

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5 )Whi c hoft hef ol l o wi ngi st r ueofa bs or pt i onc os t i ng? A)I te xpe ns e sma r ke t i ngc os t sa sc os tofgoodss ol d. B)I tt r e a t sdi r e c tma nuf a c t ur i ngc os t sa sape r i odc os t . C)I ti nc l ude sfix e dma nuf a c t ur i ngove r he a da sani nve nt or i a bl ec os t . D)I tt r e a t si ndi r e c tma nuf a c t ur i ngc os t sa sape r i odc os t . Ans we r :C Di ff: 2 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

6 )Whi c hoft hef ol l o wi ngi st r ueofva r i a bl ec os t i ng ? A)I te xpe ns e sa dmi ni s t r a t i vec os t sasc os tofgoodss ol d. B)I tt r e a t sdi r e c tma nuf a c t ur i ngc os t sa sapr oduc tc os t . C)I ti nc l ude sfix e dma nuf a c t ur i ngove r he a da sani nve nt or i a bl ec os t . D)I ti sr e qui r e df ore xt e r na lr e por t i ngt os har e hol de r s . Ans we r :B Di ff: 2 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

7 )I n_ _ __ _ _ __ ,fix e dma nuf ac t ur i ngc os t sa r ei nc l ude da si nve nt or i a bl ec os t s . A)va r i a bl ec os t i ng B)a bs or pt i onc os t i ng C)t hr oughputc os t i ng D)a c t i vi t y ba s e dc os t i ng Ans we r :B Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

8 )__ _ _ __ __me t hodi nc l ude sfix e dma nuf ac t ur i ngove r he a dc os t sa si nve nt or i a bl ec os t s . A)Va r i a bl ec os t i ng B)Abs or pt i onc os t i ng C)Thr oughputc os t i ng D)Ac t i vi t y ba s e dc os t i ng Ans we r :B Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

9 )Whi c hoft hef ol l o wi ngc os t swi l lbet r e a t e da spe r i odc os t sunde ra bs or pt i onc os t i ng ? A)r a w ma t e r i a l sus e di nt hepr oduc t i on B)s a l e sc ommi s s i onpai dons a l eofpr oduc t C)de pr e c i a t i ononf a c t or ye qui pme nt D)r e ntf orf a c t or ybui l di ng Ans we r :B Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

1 0 )Unde rabs or pt i onc os t i ng,fix e dma nuf a c t ur i ngc os t s__ __ _ _ __ . A)a r epe r i odc os t s B)a r ei nve nt or i abl ec os t s C)ar et r e a t e da sa ne xpe ns e D)a r es unkc os t s Ans we r :B 2 Copyright © 2018 Pearson Education, Ltd.

Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

1 1 )__ __ _ _ __i same t hodofi nve nt or yc os t i ngi nwhi c honl yva r i abl ema nuf a c t ur i ngc os t sa r ei nc l ude da s i nve nt or i abl ec os t s . A)Fi x e dc os t i ng B)Va r i a bl ec os t i ng C)Abs or pt i onc os t i ng D)Mi x e dc os t i ng Ans we r :B Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

1 2 )Va r i abl ec os t i ngr e ga r dsfix e dma nuf a c t ur i ngo ve r he a da sa( n)__ _ _ __ __ . A)a dmi ni s t r a t i vec os t B)i nve nt or i a bl ec os t C)pe r i odc os t D)pr oduc tc os t Ans we r :C Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

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1 3 )AAAManuf a c t ur i ngI nc , ma ke sapr oduc twi t ht hef ol l owi ngc os t spe runi t : Di r e c tma t e r i a l s$ 18 0 Di r e c tl abor$ 2 0 Ma nuf a c t ur i ngove r he a d( var i a bl e )$ 3 0 Ma nuf a c t ur i ngove r he a d( fix e d)$ 13 0 Ma r ke t i ngc os t s$ 7 5 Wha twoul dbet hei nve nt or i abl ec os tpe runi tunde rvar i a bl ec os t i nga ndwha twoul di tbeunde r a bs or pt i onc os t i ng? A)$ 1 8 0f orva r i abl ec os t i nga nd$ 30 5unde ra bs or pt i onc os t i ng B)$ 23 0f orva r i a bl ec os t i ngand$ 3 0 5unde rabs or pt i onc os t i ng C)$2 3 0f orvar i a bl ec os t i nga nd$ 36 0unde rabs or pt i onc os t i ng D)$ 20 0f orvar i a bl ec os t i nga nd$ 30 5unde rabs or pt i onc os t i ng Ans we r :C Expl ana t i on:Var i a bl ec os t i ng:$ 1 80+$ 20+$3 0=$ 2 30 Abs or pt i onc os t i ng:$1 80+$2 0+$3 0+$1 30=$3 60 Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

1 4 )Ti meAga i n,LLCpr oduc e sands e l l sama nt e lc l oc kf or$ 1 00pe runi t . I n2 01 7, 42 , 1 2 5c l oc kswe r e pr oduc e da nd3 7 , 95 8we r es ol d.Ot he ri nf or ma t i onf ort heye ari nc l ude s : Di r e c tma t e r i a l s Di r e c tma nuf ac t ur i ngl a bor Var i a bl ema nuf a c t ur i ngc os t s Sa l e sc ommi s s i ons Fi x e dma nuf a c t ur i ngc os t s Admi ni s t r a t i vee xpe ns e s ,al lfix e d

$ 4 3pe runi t $ 5pe runi t $ 3 . 50pe runi t $ 1 4. 50pe rpar t $ 6 5. 0 0pe runi t $ 3 7. 50pe runi t

Wha ti st hei nve nt or i a bl ec os tpe runi tus i ngvar i a bl ec os t i ng ? A)$ 6 6 . 00 B)$ 51 . 5 0 C)$4 8 . 0 0 D)$ 10 3 . 5 0 Ans we r :B Expl ana t i on:Var i a bl ec os t i ngc ons i de r sa l lvar i a bl ema nuf a c t ur i ngc os t sasi nve nt or i abl ec os t s . The r e f or e , i nt hi sc a s e ,di r e c tma t e r i a l s , di r e c tma nuf a c t ur i ngl a bor ,a ndva r i a bl ema nuf a c t ur i ngc os t swi l lbe c ons i de r e dasi nve nt or i a bl ec os t .Thet ot a li nve nt or i a bl ec os t=( $4 3+$ 5+$3 . 50 )=$5 1 . 5 0 Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

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1 5 )Ti meAga i nLLCpr oduc e sands e l l sama nt e lc l oc kf or$ 1 00pe runi t .I n2 01 7, 41 , 0 0 0c l oc kswe r e pr oduc e da nd3 7 , 00 0we r es ol d.Ot he ri nf or ma t i onf ort heye ari nc l ude s : Di r e c tma t e r i a l s Di r e c tma nuf ac t ur i ngl a bor Var i a bl ema nuf a c t ur i ngc os t s Sa l e sc ommi s s i ons Fi x e dma nuf a c t ur i ngc os t s Admi ni s t r a t i vee xpe ns e s ,al lfix e d

$ 4 2pe runi t $ 7pe runi t $ 4 . 00pe runi t $ 1 4. 50pe rpar t $ 6 4. 0 0pe runi t $ 3 8. 50pe runi t

Wha ti st hei nve nt or i a bl ec os tpe runi tus i ngabs or pt i onc os t i ng? A)$ 4 9 . 00 B)$ 53 . 0 0 C)$1 1 7 . 00 D)$ 10 6 . 0 0 Ans we r :C Expl ana t i on:Abs or pt i onc os t i ngc ons i de r sa l lva r i a bl ema nuf a c t ur i ngc os t sa nda l lfix e dma nuf a c t ur i ng c os t sa si nve nt or i abl ec os t s .The r e f or e , i nt hi sc a s e , di r e c tma t e r i al s , di r e c tma nuf a c t ur i ngl a bor ,va r i abl e ma nuf a c t ur i ngc os t s ,a ndfix e dma nuf a c t ur i ngc os t swi l lbec ons i de r e da si nve nt or i a bl ec os t .Thet ot a l i nve nt or i abl ec os t=( $ 42+$ 7+$ 4. 00+$6 4 . 0 0)=$1 1 7 . 00 . Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

1 6 )Fa s tTr a c kAut opr oduc e sa nds e l l sa na ut opa r tf or$ 6 0pe runi t .I n2 0 17 , 1 2 0, 00 0pa r t swe r epr oduc e d a nd7 5, 00 0uni t swe r es ol d.Ot he ri nf or ma t i onf ort heye a ri nc l ude s : Di r e c tma t e r i a l s Di r e c tma nuf ac t ur i ngl a bor Var i a bl ema nuf a c t ur i ngc os t s Sa l e sc ommi s s i ons Fi x e dma nuf a c t ur i ngc os t s Admi ni s t r a t i vee xpe ns e s ,al lfix e d

$ 2 0pe runi t $ 5pe runi t $ 3pe runi t $ 7pe rpa r t $ 7 60 , 00 0pe rye a r $ 2 70 , 00 0pe rye a r

Wha ti st hei nve nt or i a bl ec os tpe runi tus i ngvar i a bl ec os t i ng ? A)$ 2 0 B)$ 25 C)$2 8 D)$ 35 Ans we r :C Expl ana t i on:Var i a bl ec os t i ngc ons i de r sa l lvar i a bl ema nuf a c t ur i ngc os t sasi nve nt or i abl ec os t s . The r e f or e , i nt hi sc a s e ,di r e c tma t e r i a l s , di r e c tma nuf a c t ur i ngl a bor ,a ndva r i a bl ema nuf a c t ur i ngc os t swi l lbe c ons i de r e dasi nve nt or i a bl ec os t .Thet ot a li nve nt or i a bl ec os ti s$ 28( $ 20+$5+$3 ) . Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

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1 7 )Fa s tTr a c kAut opr oduc e sa nds e l l sa na ut opa r tf or$ 8 5pe runi t .I n2 0 17 , 1 1 0, 00 0pa r t swe r epr oduc e d a nd9 0, 00 0uni t swe r es ol d.Ot he ri nf or ma t i onf ort heye a ri nc l ude s : Di r e c tma t e r i a l s Di r e c tma nuf ac t ur i ngl a bor Var i a bl ema nuf a c t ur i ngc os t s Sa l e sc ommi s s i ons Fi x e dma nuf a c t ur i ngc os t s Admi ni s t r a t i vee xpe ns e s ,al lfix e d

$ 2 3pe runi t $ 6pe runi t $ 1pe runi t $ 6pe rpa r t $ 79 0, 00 0pe rye a r $ 31 0, 00 0pe rye a r

Wha ti st hei nve nt or i a bl ec os tpe runi tus i ngabs or pt i onc os t i ng? A)$ 3 0 . 00 B)$ 36 . 0 0 C)$3 7 . 1 8 D)$ 40 . 0 0 Ans we r :C Expl ana t i on:Abs or pt i onc os t i ngc ons i de r sa l lva r i a bl ema nuf a c t ur i ngc os t sa nda l lfix e dma nuf a c t ur i ng c os t sa si nve nt or i abl ec os t s .The r e f or e , i nt hi sc a s e , di r e c tma t e r i al s , di r e c tma nuf a c t ur i ngl a bor ,va r i abl e ma nuf a c t ur i ngc os t s ,a ndfix e dma nuf a c t ur i ngc os t swi l lbec ons i de r e da si nve nt or i a bl ec os t .Thet ot a l i nve nt or i abl ec os ti s$ 37 . 18( $ 2 3+$6+$ 1+$7 . 18 * ) . *$7 90 , 0 0 0/1 10 , 0 0 0 =$7 . 18pe runi t Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

1 8 )Va r i abl ec os t i ngonl yi nc l ude sdi r e c tma nuf a c t ur i ngc os t si ni nve nt or i abl ec os t s . Ans we r :F ALSE Expl ana t i on:I ti nc l ude sonl yva r i abl ema nuf a c t ur i ngc os t si ni nve nt or yc os t s . Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

1 9 )Theuni tc os tofapr oduc ti sa l wa yshi ghe ri nva r i a bl ec os t i ngt ha ni na bs or pt i onc os t i ng. Ans we r :F ALSE Expl ana t i on:Theuni tc os tofapr oduc ti sa l wa yshi ghe ri na bs or pt i onc os t i ngt ha ni nva r i a bl ec os t i ngas a bs or pt i onc os t i ngt r e a t sfix e dma nuf a c t ur i ngove r he a dasani nve nt or i a bl ec os t swhe r e a sva r i a bl ec os t i ng t r e a t si taspe r i odc os t s . Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

2 0 )Unde rvar i a bl ec os t i ng,l e a s ec har ge spa i dont hef a c t or ybui l di ngi sa ni nve nt or i abl ec os t . Ans we r :F ALSE Expl ana t i on:Var i a bl ec os t i nge x c l ude sfix e dma nuf ac t ur i ngove r he a df r om i nve nt or i a bl ec os t sa nd t he r e f or e ,l e a s ec har ge spai donf a c t or ybui l di ngwi l lnotf or m pa r tofi nve nt or i a bl ec os t s . Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

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2 1 )Unde rbot hva r i a bl eandabs or pt i onc os t i ng, r e s e a r c handde ve l opme ntc os t sa r epe r i odc os t s . Ans we r :TRUE Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

2 2 )Va r i abl ec os t i ngi sa l s oc a l l e ddi r e c tc os t i ngbe c a us ei tc ons i de r sot he rnonma nuf ac t ur i ngdi r e c tc os t s , s uc ha sdi r e c tma r ke t i ngc os t sa si nve nt or i a bl ec os t s . Ans we r :F ALSE Expl ana t i on:Var i a bl ec os t i ngi sa l s os ome t i me sc a l l e ddi r e c tc os t i ngbutt ha tna mei smi s l e a di ngasi t e x c l ude sdi r e c tnonma nuf a c t ur i ngc os t sa ndonl yi nc l ude sva r i a bl ec os t st ha ta r epa r tofpr oduc t i ona nd notout s i deofpr oduc t i oni nt heva l uec ha i n-asma r ke t i ngc os t swoul dbe . Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

2 3 )Abs or pt i onc os t i ngi same t hodofi nve nt or yc os t i ngi nwhi c honl yva r i abl ema nuf a c t ur i ngc os t sa r e i nc l ude da si nve nt or i abl ec os t s . Ans we r :F ALSE Expl ana t i on:Abs or pt i onc os t i ng" a bs or bs "a l lma nuf a c t ur i ngc os t si nt oi nve nt or yc os t sa ndt he r e f or e i nc l ude sbot hva r i abl eandfix e dma nuf a c t ur i ngc os t s . Di ff: 1 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

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2 4 )For2 0 17 ,Roc kf or d,I nc . ,hads a l e sof1 50 , 0 0 0uni t sa ndpr oduc t i onof2 00 , 00 0uni t s .Ot he ri nf or ma t i on f ort heye a ri nc l ude d: Di r e c tma nuf ac t ur i ngl a bor Var i a bl ema nuf a c t ur i ngove r he a d Di r e c tma t e r i a l s Var i a bl es e l l i nge xpe ns e s Fi x e dadmi ni s t r a t i vee x pe ns e s Fi x e dma nuf a c t ur i ngove r he ad

$ 1 97 , 50 0 1 0 0, 00 0 1 6 0, 00 0 1 0 0, 00 0 1 0 0, 00 0 2 5 0, 00 0

The r ewa snobe gi nni ngi nve nt or y . Re qui r e d: a . Comput et hee ndi ngfini s he dgoodsi nve nt or yunde rbot ha bs or pt i onandvar i a bl ec os t i ng. b . Comput et hec os tofgoodss ol dunde rbot habs or pt i onandvar i a bl ec os t i ng. Ans we r : a . Abs or pt i on Va r i abl e Di r e c tma t e r i a l s $ 1 60 , 00 0 $ 16 0 , 0 00 Di r e c tma nuf ac t ur i ngl a bor 1 9 7, 50 0 1 9 7, 50 0 Var i a bl ema nuf a c t ur i ngove r he a d 1 0 0, 00 0 1 0 0, 00 0 Fi x e dma nuf a c t ur i ngove r he ad 2 5 0, 00 0 0 Tot a l $ 7 07 , 50 0 $ 4 57 , 50 0 Uni tc os t s : $ 7 07 , 50 0 /2 00 , 00 0uni t s $ 4 57 , 50 0 /2 00 , 00 0uni t s

$ 3 . 53 75

Endi ngi nve nt or y: 5 0 , 00 0uni t s×$ 3. 53 75 5 0 , 00 0uni t s×$ 2. 28 75

$ 1 76 , 87 5

b . Cos tofgoodss ol d: 1 5 0, 00 0×$3 . 53 7 5 1 5 0, 00 0×$2 . 28 7 5

$ 2 . 28 75

$ 1 14 , 3 7 5

$ 5 30 , 62 5 $ 3 43 , 12 5

Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

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2 5 )Char l as s i e rCor por a t i onma nuf a c t ur e sa nds e l l sl apt opc omput e r sandus e ss t a ndar dc os t i ng.Fort he mont hofSe pt e mbe rt he r ewasnobe gi nni ngi nve nt or y ,t he r ewe r e3, 00 0uni t spr oduc e dand2 , 50 0uni t s s ol d.Thema nuf a c t ur i ngva r i a bl ec os tpe runi ti s$ 38 5andt hevar i a bl eope r a t i ngc os tpe runi twa s $ 3 12 . 50 .Thefix e dma nuf a c t ur i ngc os ti s$ 45 0, 00 0a ndt hefix e dope r a t i ngc os ti s$ 75 , 0 0 0.Thes e l l i ng pr i c epe runi ti s$ 9 25 . Re qui r e d: Pr e pa r et hei nc omes t a t e me ntf orCha r l a s s i e rCor por a t i onf orSe pt e mbe runde rva r i a bl ec os t i ng. Ans we r : Re ve nue s( 2 , 5 00×$ 9 25 ) $ 2 , 31 2, 50 0 Var i a bl ec os t s Be gi nni ngi nve nt or y $ 0 Var i a bl ema nuf a c t ur i ngc os t s( 3 , 00 0×$ 38 5 ) 1 , 1 55 , 00 0 Cos tofgoodsa vai l a bl e 1 , 1 55 , 00 0 De duc te ndi ngi nve nt or y(5 00×$ 3 85 ) ( 1 9 2, 50 0 ) Var i a bl ec os tofgoodss ol d 9 6 2, 50 0 Var i a bl eope r a t i ngc os t s( 2 , 50 0×$ 31 2. 5 0 ) 7 8 1, 25 0 Tot a lva r i a bl ec os t s 1 , 7 43 , 75 0 Cont r i but i onma r gi n 5 6 8, 75 0 Fi x e dc os t s Fi x e dma nuf a c t ur i ngc os t s 4 5 0, 00 0 Fi x e dope r a t i ngc os t s 7 5 , 00 0 Tot a lfix e dc os t s 5 2 5, 00 0 Ope r a t i ngi nc ome $4 3, 75 0 Di ff: 2 Obj e c t i ve :1 AACSB:Appl i c a t i onofknowl e dge

2 6 )a . Expl ai nt hedi ffe r e nc ebe t we e nt heva r i a bl ea ndabs or pt i onc os t i ngme t hods . b . Whi c hme t hod( s )a r er e qui r e df ore xt e r nalr e por t i ng ?Fori nt e r na lr e por t i ng ? Ans we r : a . Abs or pt i onc os t i ngi nc l ude sbot hfix e da ndva r i a bl ema nuf a c t ur i ngc os t sa si nve nt or i a bl ec os t s , whe r e a svar i a bl ec os t i ngonl yi nc l ude svar i a bl ema nuf ac t ur i ngc os t sa si nve nt or i abl ec os t s . b . Abs or pt i onc os t i ngi sr e qui r e df ore xt e r na lr e por t i ngt os har e hol de r sa ndf ori nc omet a xr e por t i ng.A c ompa nyma yus ewhi c he ve rme t hodi tc hoos e sf ori nt e r na lr e por t i ngpur pos e s . Di ff: 2 Obj e c t i ve :1 AACSB:Anal yt i c a lt hi nki ng

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9 . 2 Obj e c t i ve9 . 2 1 )Thec ont r i but i onma r gi nf or ma ti sus e df or_ _ __ __ _ _ . A)va r i a bl ec os t i ngi nc omes t a t e me nt B)mi x e dc os t i ngi nc omes t a t e me nt C)a bs or pt i onc os t i ngi nc omes t a t e me nt D)j obor de rc os t i ngi nc omes t a t e me nt Ans we r :A Di ff: 2 Obj e c t i ve :2 AACSB:Anal yt i c a lt hi nki ng

2 )Thegr os s ma r gi nf or ma ti sus e df or_ _ __ __ _ _ . A)va r i a bl ec os t i ngi nc omes t a t e me nt B)mi x e dc os t i ngi nc omes t a t e me nt C)a bs or pt i onc os t i ngi nc omes t a t e me nt D)s t a nda r dc os t i ngi nc omes t a t e me nt Ans we r :C Di ff: 2 Obj e c t i ve :2 AACSB:Anal yt i c a lt hi nki ng

3 )Whi c hoft hef ol l o wi ngs t a t e me nt si st r ueofc ont r i but i onma r gi nf or ma toft hei nc omes t a t e me nt ? A)I ti sus e df orabs or pt i onc os t i ng. B)I tdi s t i ngui s he sbe t we e nvar i a bl ea ndfix e dc os t si ni t sf or ma t . C)I tdi s t i ngui s he sma nuf a c t ur i ngc os t sf r om nonma nuf a c t ur i ngc os t s . D)I tc a l c ul a t e sgr os sma r gi n. Ans we r :B Di ff: 3 Obj e c t i ve :2 AACSB:Anal yt i c a lt hi nki ng

4 )Whi c hoft hef ol l o wi ngs t a t e me nt si st r ueofgr os s ma r gi nf or ma toft hei nc omes t a t e me nt ? A)I tdi s t i ngui s he sbe t we e nma nuf a c t ur i nga ndnonma nuf a c t ur i ngc os t s . B)I tdi s t i ngui s he sva r i abl ec os t sf r om fix e dc os t s . C)I ti sus e df orva r i abl ec os t i ng. D)I tc a l c ul a t e st hec ont r i but i onma r gi nf r om s a l e s . Ans we r :A Di ff: 2 Obj e c t i ve :2 AACSB:Anal yt i c a lt hi nki ng

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5 )Whi c hoft hef ol l o wi ngwoul dbes ubt r a c t e df r om s a l e swhi l ec al c ul a t i ngc ont r i but i onma r gi ni na va r i abl ec os t i ngf or ma tofa nope r a t i ngi nc omes t a t e me nt ? A)Di r e c tl a bori nf a c t or y B)Re ntonf a c t or ybui l di ng C)Re ntont hehe adquar t e r sbui l di ng D)Sa l e sc ommi s s i ononi nc r e me nt als a l e s Ans we r :A Di ff: 2 Obj e c t i ve :2 AACSB:Anal yt i c a lt hi nki ng

6 )__ _ _ __ __a r es ubt r a c t e df r om s a l e st oc a l c ul a t egr os sma r gi n. A)Va r i a bl eandfix e dma nuf a c t ur i ngc os t s B)Fi x e dadmi ni s t r a t i vec os t s C)Va r i a bl ea dmi ni s t r a t i vec os t s D)Fi x e ds e l l i ngc os t s Ans we r :A Di ff: 2 Obj e c t i ve :2 AACSB:Anal yt i c a lt hi nki ng

7 )S wans e aFi ni s hi ngpr oduc e sa nds e l l sade c or a t i vepi l l o wf or$ 10 3. 00pe runi t . I nt hefir s tmont hof ope r a t i on, 2, 3 0 0uni t swe r epr oduc e da nd1, 80 0uni t swe r es ol d.Ac t ua lfix e dc os t sa r et hes ameast he a mountbudge t e df ort hemont h.Ot he ri nf or ma t i onf ort hemont hi nc l ude s : Var i a bl ema nuf a c t ur i ngc os t s Var i a bl ema r ke t i ngc os t s Fi x e dma nuf a c t ur i ngc os t s Admi ni s t r a t i vee xpe ns e s ,al lfix e d Endi ngi nve nt or i e s : ...