Question 1 Molding and sanding each unit of a product would most likely be class

Question

Question

1

Molding and sanding each unit of a product would most likely be classified as a ________ cost.

Question

2

What will the use of departmental overhead rates generally result in?

Question

3

All of the following are considered to be part of the cost hierarchy often used to implement ABC, except

Question

4

The use of which of the following costing systems is most likely to reduce cost distortion to a minimum?

Question

5

When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ________ and then ________ together the allocated amounts from each department.

Question

6

Total fixed costs for Randolph Manufacturing are $752,450. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The fixed cost per unit at 186,250 units would be closest to

Question

7

With respect to variable costs per unit, which of the following statements is true?

Question

8

Which of the following is a characteristic of a variable cost?

Question

9

Which of the following is a fixed cost?

Question

10

For most businesses, annual straight line depreciation expense on the company's building is what type of cost?

unit-level batch-level product-level facility-level

Explanation / Answer

1

Molding and sanding each unit of a product would most likely be classified as a ________ cost.

Unit level costs - costs relating to activities that are performed for each unit produced.

Ans

unit-level

batch-level

product-level

facility-level

Question

2

What will the use of departmental overhead rates generally result in?

Ans)

The use of a separate cost allocation base for each department in the factory

The use of a single cost allocation base

The use of a single overhead cost pool for the factory

The use of separate cost allocation base for each activity in the factory

Question

3

All of the following are considered to be part of the cost hierarchy often used to implement ABC, except

Ans

production-level activity.

batch-level activity.

product-level activity.

unit-level activity.

Question

4

The use of which of the following costing systems is most likely to reduce cost distortion to a minimum?

Plantwide overhead rate

Departmental overhead allocation rates

Traditional costing system

Ans

Activity-based costing

Question

5

When calculating the total amount of manufacturing overhead to allocate to a particular job, the company would multiply each departmental overhead rate by ________ and then ________ together the allocated amounts from each department.

When calculating the total amt of manufacturing Overhead to allocate to a particular job,the company would multiply each deptt overhead rate by the actual amt of the department allocation based used by the job.

the actual amount of the departmental allocation based used by the job; multiply

the actual amount of the plantwide allocation based used by the job; add

Ans

the actual amount of the departmental allocation based used by the job; add

the actual amount of the plantwide allocation based used by the job; multiply

Question

6

Total fixed costs for Randolph Manufacturing are $752,450. Total costs, including both fixed and variable, are $1,000,000 if 150,000 units are produced. The fixed cost per unit at 186,250 units would be closest to

Ans) Fixed Cost=752,450 Units Produced=186,250

Fixed cost per unit=752,450/186,250=$4 per unit

$1.31/unit.

$5.31/unit.

    Ans

$4.00/unit.

$5.03/unit.

Question

7

With respect to variable costs per unit, which of the following statements is true?

Variable cost per unit do not change due to increase or decrease in production or sales.

They will decrease as production increases within the relevant range.

They will increase as production decreases within the relevant range.

They will decrease as production decreases within the relevant range.

Ans

They will remain the same as production levels change within the relevant range.

Question

8

Which of the following is a characteristic of a variable cost?

Variable cost in total should be change due to increase or decrease in production or sales.

Variable costs are fixed in total.

Ans

Variable costs fluctuate in total with production and sales.

Variable costs do not change in total over any range.

All of the above may be characteristic of a variable cost.

Question

9

Which of the following is a fixed cost?

Direct materials cost

Direct labor cost

Ans

Straight-line depreciation expense

Sales commissions expense

Question

10

For most businesses, annual straight line depreciation expense on the company's building is what type of cost?

Straight line depreciation does not depend upon the number of units produced, so it is a fixed cost.

Variable

Mixed

Ans

Fixed

Step

Ans

unit-level

batch-level

product-level

facility-level

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