Question 1. Question : The goal of managerial accounting is to provide information that managers need for Student Answer: planning. control. decision making. All of the above answers are correct. Points Received: 5 of 5 Comments: Question 2. Question : The fundamental difference between managerial and financial accounting is that Student Answer: all financial accounting information is audited by Certified Public Accountants whereas managerial accounting information is not audited by anyone. managerial accounting is concerned principally with determining the cost of inventory (ending inventory and cost of goods sold), whereas financial accounting is concerned with a wider range of the organization’s activities. managerial accounting provides information for decision-makers within the organization, whereas financial accounting provides information for individuals and institutions external to the organization. financial accounting information follows U.S. Generally Accepted Accounting Principles, whereas managerial accounting information generally follows rules set forth by the Institute of Management Accountants. Points Received: 5 of 5 Comments: Question 3. Question : Which of the following costs does not change when the level of business activity changes? Student Answer: total fixed costs total variable costs total direct materials costs fixed costs per unit Points Received: 5 of 5 Comments: Question 4. Question : Which of the following is not likely to be a fixed cost? Student Answer: direct materials rent depreciation salary of the human resources director Points Received: 5 of 5 Comments: Question 5. Question : Sunk costs Student Answer: are not relevant for decision making would include the cost of your tuition after the refund deadline has passed. are costs that have been incurred in the past. All of the above are correct. Points Received: 0 of 5 Comments: Question 6. Question : The wages of a timekeeper in the factory would be classified as Student Answer: a prime cost. direct labor. indirect labor. compliance costs. Points Received: 5 of 5 Comments: Question 7. Question : Shula’s 347 Grill has budgeted the following costs for a month in which 1,600 steak dinners will be produced and sold: Materials, $4,080; hourly labor (variable), $5,200; rent (fixed), $1,700; depreciation, $800; and other fixed costs, $600. Each steak dinner sells for $14.00 each. What is Shula’s budgeted profit? Student Answer: $22,400 $13,120 $10,020 $12,380 Points Received: 5 of 5 Comments: Question 8. Question : Which of the following is a period cost? Student Answer: Rent on an factory building Depreciation on production equipment Raw materials cost Commissions paid on each unit sold Points Received: 0 of 5 Comments: Question 9. Question : Which one of the following would not be classified as manufacturing overhead? Student Answer: Indirect labor Direct materials Insurance on factory building Indirect materials Points Received: 5 of 5 Comments: Question 10. Question : Stevens Manufacturing Company reported the following year-end information: beginning work in process inventory, $180,000; cost of goods manufactured, $516,000; beginning finished goods inventory, $252,000; ending work in process inventory, $220,000; and ending finished goods inventory, $264,000. Stevens Manufacturing Company’s cost of goods sold for the year is Student Answer: $504,000. $528,000. $476,000. $252,000. Points Received: 0 of 5 Comments: Question 11. Question : If the amount of underapplied overhead or overapplied overhead is not material, the Manufacturing Overhead account is closed to Student Answer: Raw Materials Inventory. Work in Process Inventory. Finished Goods Inventory. Cost of Goods Sold. Points Received: 0 of 5 Comments: Question 12. Question : Which of the following companies is most likely to use a process costing system? Student Answer: A law office A custom home builder A car repair business A food manufacturer Points Received: 5 of 5 Comments: Question 13. Question : Labor and overhead are often grouped together and referred to as Student Answer: prime costs. conversion costs. total manufacturing costs. equivalent unit costs. Points Received: 0 of 5 Comments: Question 14. Question : 3,000 units in a process that are 70% complete, are referred to as Student Answer: 3,000 equivalent units of production. 900 equivalent units of production. 2,100 equivalent units of production. 900 unequivalent units of production. Points Received: 5 of 5 Comments: Question 15. Question : When the level of activity increases, the variable cost per unit Student Answer: decreases. remains constant. increases. fluctuates, depending on the amount of the increase in activity. Points Received: 5 of 5 Comments: Question 16. Question : Which of the following is not involved in determining the break-even point? Student Answer: anticipated sales for the next period fixed costs selling price per unit variable cost per unit Points Received: 5 of 5 Comments: Question 17. Question : At Havana Cafe, the break-even point is 2,000 units. If fixed costs total $300,000 and variable costs are $30 per unit, what is the selling price per unit? Student Answer: $5 $210 $150 $180 Points Received: 0 of 5 Comments: Question 18. Question : If a company had a contribution margin of $200,000 and a contribution margin ratio of 40%, total variable costs must have been Student Answer: $300,000. $120,000. $500,000. $80,000. Points Received: 0 of 5 Comments: Question 19. Question : Sales are $250,000 and variable costs are $150,000. What is the contribution margin ratio? Student Answer: 67% 40% 60% cannot be determined because amounts are not expressed per unit. Points Received: 5 of 5 Comments: Question 20. Question : (TCO 4) Which of the following will have no effect on the break-even point in units? Student Answer: The selling price increases The variable cost per unit increases The sales volume increases Total fixed costs increase Instructor Explanation: Chapter 4, Page 131 Points Received: 5 of 5 Comments: Question 21. Question : (TCO 4) The margin of safety is the difference between Student Answer: total revenue and total fixed costs. expected level of sales and the break-even point. budgeted fixed costs and actual fixed costs. selling price and variable cost per unit. Instructor Explanation: Chapter 4, Page 131 Points Received: 5 of 5 Comments: Question 22. Question : (TCO 1) Which of the following costs is not part of manufacturing overhead? Student Answer: electricity for the factory depreciation of factory equipment salaries for the production supervisors health insurance for sales staff Instructor Explanation: Chapter 2, Page 37 Points Received: 5 of 5 Comments: Question 23. Question : (TCO 1) Which of the following is a period cost? Student Answer: rent on a factory building depreciation on production equipment raw materials cost commissions paid on each unit sold Instructor Explanation: Chapter 2, Page 39 Points Received: 0 of 5 Comments: Question 24. Question : (TCO 3) Which of the following describes the differences between job-order and process costing? Student Answer: Job-order costing is used in financial accounting while process costing is used in managerial accounting. Job-order costing can only be used by manufacturers; service enterprises must use process costing. Job-order costing is voluntary while process costing is mandatory. Job-order costing traces costs to jobs while process costing traces costs to departments and averages the costs among the units worked on during the period. Instructor Explanation: Chapter 3, Page 84 Points Received: 5 of 5 Comments: Page: 1 2 Page: 1 2 Question 1. Question : Show all steps of your calculation and formula as well as the final answer ( to receive credit) The following monthly data are available for Win, which produces only one product that it sells for $96 each. Its unit variable costs are $ 48 and its total fixed expenses are $72,720. Sales during April totaled 1,600 units. (a) What is the breakeven point in sales dollars for Win? (b) How many units must Win sell in order to earn a profit of $24,000? this cost? Question 2. Question : Show all steps of your calculation and formula as well as the final answer ( to receive credit) The following data (in thousands of dollars) have been taken from the accounting records of Dallas Corporation for the just-completed year. Sales $950 Purchases of raw materials $170 Direct labor $210 Manufacturing overhead $220 Administrative expenses $180 Selling expenses $140 Raw materials inventory, beginning $70 Raw materials inventory, ending $80 Work-in-process inventory, beginning $30 Work-in-process inventory, ending $20 Finished goods inventory, beginning $100 Finished goods inventory, ending $70 Required: Prepare a Schedule of Cost of Goods Manufactured statement for the Dallas Corp