mixed cost is partially variable and partially fixed. Review Questions T/F True Review Questions M/C Temblador Corporation purchased a machine 7 years ago for $319,000 when it launched product E26T. Unfortunately, this machine has broken down and cannot be repaired. The machine could be replaced by a new model 330 machine […]
mixed cost is partially variable and partially fixed. Read More »
Committed fixed costs are fixed costs that are not controllable. Review Questions T/F False Review Questions T/F Place Your Order Here!
Committed fixed costs are fixed costs that are not controllable. Read More »
Automation results in a shift away from variable costs toward more fixed costs. Review Questions T/F True Review Questions T/F 73. In order for a cost to be variable it must vary with either units produced or units sold. Review Questions T/F False Review Questions T/F 74. The concept of the relevant range does
Automation results in a shift away from variable costs toward more fixed costs. Read More »
Differential Cost and Revenue Costs and revenues that differ among alternatives. Example: You have a job paying $1,500 per month in your hometown. You have a job offer in a neighboring city that pays $2,000 per month. The commuting cost to the city is $300 per month. Differential revenue is: $2,000 – $1,500 = $500
Costs and revenues that differ among alternatives. Read More »
Direct costs Costs that can be easily and conveniently traced to a unit of product or other cost object. Examples: direct material and direct labor Indirect costs Costs that cannot be easily and conveniently traced to a unit of product or other cost object. Example: manufacturing overhead
The total of the period costs listed above for December is: A. $89,000 B. $310,000 C. $325,000 D. $399,000 Review Questions M/C B. $310,000 Period costs = Administrative wages and salaries + Sales staff salaries + Corporate headquarters building rent + Marketing = $105,000 + $68,000 + $34,000 + $103,000 = $310,000 Review Questions M/C 66. The total
When finished goods are sold, there is an increase in which of the following accounts? A- Finished Goods Inventory B- Cost of Goods Sold C- Work-in-Process Inventory D- Cost of Goods Manufactured Review Questions M/C B Review Questions M/C 64. Gabruk Inc. is a merchandising company. Last month the company’s merchandise purchases totaled
When finished goods are sold, there is an increase in which of the following accounts? Read More »
Traditional format income statements are prepared primarily for external reporting purposes. Review Questions T/F True Review Questions T/F 57. In a contribution format income statement, sales minus cost of goods sold equals the gross margin. Review Questions T/F False Review Questions T/F 58. In a traditional format income statement for a merchandising
Segmented reporting of profit data Special decisions such as pricing and make-or-buy analysis This approach is used as an internal planning and decision-making tool. For example, this approach is useful for and discussed further in Cost-volume-profit analysis (Chapter 5), Budgeting (Chapter 8), Segmented reporting of profit data (Chapter 6), Special decisions such as pricing and
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Using the high-low method, the estimate of the fixed component of office expense per month is closest to: A. $6,692 B. $8,064 C. $7,376 D. $7,720 Review Questions M/C A. $6,692 Review Questions M/C Learning Objective 5 Prepare income statements for a merchandising company using the traditional and contribution formats. Learning objective number 5 is to prepare income