Accounting

Committed fixed costs are fixed costs that are not controllable.   Review Questions T/F False   Review Questions T/F Place Your Order Here!

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

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

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

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

 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

 All costs incurred in a merchandising firm are considered to be period costs.       Review Questions T/F False   Review Questions T/F 35. Depreciation is always considered a product cost for external financial reporting purposes in a manufacturing firm.           Review Questions T/F False   Review Questions T/F 36. Selling and