Question
2 of 20

5.0
Points

The
use of either absorption or variable costing will make little difference in
companies:

A.
using just-in-time inventory methods.

B.
with large inventories.

C.
with high fixed costs.

D.
with high variable costs.

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Question
3 of 20

5.0
Points

Sugartown
Corporation has total sales revenues of $930,000. If its total fixed costs are
$182,000 and its total variable costs are $267,000, then the total contribution
margin is:

A.
total revenue minus total fixed costs.

B.
total revenue minus total variable costs.

C.
total variable costs minus total fixed costs.

D.
equal to operating income.

Question
4 of 20

5.0
Points

The
Jones Corporation uses a process system. During the current period, 2,500 units
were started and 1,100 units were completed and transferred out. Ending units
were 60% complete for materials and 45% complete for conversion costs. Direct
materials costs added were $35,405 and conversion costs added were $32,870. There
was no beginning WIP inventory and conversion costs are added evenly throughout
the process. At the end of the period, what are the total equivalent units for
conversion costs?

A.
1,940

B. 1,400

C. 1,100

D.
1,730

Question
5 of 20

5.0
Points

The
following information is provided by Adametz Company.

The
units in ending WIP inventory were 90% comp

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lete
for materials and 50% complete for conversion costs. At the end of the year,
what are the equivalent units for conversion costs?

A.
3,750

B. 3,300

C. 5,400

D.
2,100

Question
6 of 20

5.0
Points

A
company manufactures mirrors. Last month’s costs were as follows.

What
were the conversion costs for the month?

A.
$302,000

B.
$392,000

C.
$234,000

D.
$90,000

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Question
8

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of
20

5.0
Points

Which
of the following does NOT appear on an income statement prepared using variable
costing?

A.
Fixed production costs

B. Contribution margin

C.
Gross margin

D. Variable production costs

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Question
9 of 20

5.0
Points

The
first step of the 5-step process costing procedure is.

A.
compute output in terms of equivalent units.

B.
summarize total costs to account for.

C.
compute the cost per equivalent unit.

D.
summarize the flow of physical units.

Question
10 of 20

5.0
Points

In
process costing, ________ is/are found by taking the number of partially
completed physical units and multiplying it by the percentage of the process
completed.

A.
cost of goods sold

B. equivalent units

C.
fixed manufacturing overhead costs

D.
conversion costs

Question
12 of 20

5.0
Points

Which
of the following is unique to a process costing system?

A.
Work is not started on a product until an order is received.

B.
Direct materials, direct labor, and manufacturing overhead are assigned to the
first department only.

C.
Costs for each process stay with that process until the goods are moved to
finished goods.

D. Each process has its own WIP account.

Question
13 of 20

5.0
Points

The
contribution margin is equal to:

A.
sales minus cost of goods sold.

B.
sales minus operating expenses.

C.
sales minus fixed expenses.

D.
sales minus variable expenses.

Question
14 of 20

5.0
Points

At
H

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odgson
Corporation, direct materials are added at the beginning of the process, and
conversion costs are uniformly applied. Other details include the following.

What
are the total equivalent units for conversion costs?

A.
127,200

B. 125,300

C. 129,500

D.
138,700

Question
15 of 20

5.0
Points

On
a traditional income statement, sales revenue less cost of goods sold equals:

A.
gross profit.

B. contribution margin.

C.
operating income.

D. operating expenses.

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Question
16 of 20

5.0
Points

The
representation for fixed cost per unit of activity is:

A.
vx divided by v.

B.
vx divided by y.

C. y divided by x.

D.
f divided by x.

Question
17 of 20

5.0
Points

Fixed
costs that are the result of previous management decisions that current
managers have no control over in the short run are called ________ fixed costs.

A.
discretionary

B.
committed

C. standard

D. past

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Question
18 of 20

5.0
Points

When
predicting costs at other volumes using a cost equation derived from either the
high-low method or regression analysis, managers should consider:

A.
outliers.

B.
general inflation.

C.
seasonality.

D.
All of the above

Question
19 of 20

5.0
Points

Total
fixed costs for Purple Figs Company are $52,000. Total costs, both fixed and
variable, are $160,000 if 80,000 units are produced. The fixed cost per unit at
80,000 units would be:

A.
$1.35/unit.

B.
$0.65/unit.

C.
$2.00/unit.

D.
$2.65/unit.

Question
20 of 20

5.0
Points

When
absorption costing is used and management bonuses are related to operating
income, managers are more likely to:

A.
decrease inventory levels.

B.
increase inventory levels.

C.
keep inventory levels consistent.

D.
steal from the company.