Accounting

The total mixed cost line can be expressed as an equation: Y = a + bX Where: Y=The total mixed cost. a=The total fixed cost (the vertical intercept of the line). b=The variable cost per unit of activity (the slope of the line). X=The level of activity. Sheet1 The total mixed cost line can be […]

The following costs were incurred in September:       Behavior of Cost (within the relevant range) CostIn TotalPer Unit VariableTotal variable cost IncreaseVariable cost per unit and decrease in proportionremains constant. to changes in the activity level. FixedTotal fixed cost is not affectedFixed cost per unit decreases by changes in the activityas the activity

In making the decision to buy the model 230 machine rather than the model 330 machine, the differential cost was:  A. $34,000 B. $38,000 C. $4,000 D. $67,000   Review Questions M/C B. $38,000 Differential cost = $323,000 – $285,000 = $38,000     Review Questions M/C 81. In making the decision to buy the model 230 machine rather than the

 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

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