TEST BANK for Managerial
Accounting (7th Edition) by
Karen Wilken Braun
A fixed cost that supports the operations of more than one
segment, but is not traceable in whole or part to any one segment
is a(n) _____ fixed cost. - <<<<CORRECT ANSWERS>>>common
The number of units produced does not affect net operating
income when using _____ costing - <<<<CORRECT
ANSWERS>>>variable
The segment margin is obtained by deducting the ______ fixed
costs of a segment from the segment's ______. - <<<<CORRECT
ANSWERS>>>traceable; contribution margin
Costs are categorized by function when using costing _______ and
by behavior when using ______ costing - <<<<CORRECT
ANSWERS>>>absorption; variable
Absorption costing can lead managers to mistakenly believe that
fixed manufacturing overhead costs will ______ as the number of
, units produced increases. - <<<<CORRECT
ANSWERS>>>increase in total
A segment should be discontinued when the segment: -
<<<<CORRECT ANSWERS>>>has a contribution margin that
cannot cover traceable fixed costs; cannot cover its own costs
Two general costing approaches used by manufacturing
companies to prepare income statements are _____ costing and
_____ costing - <<<<CORRECT ANSWERS>>>variable; absorption
Variable costing income statements are based upon a ________
format. - <<<<CORRECT ANSWERS>>>contribution margin
Variable costing treats ______ manufacturing costs as product
costs. - <<<<CORRECT ANSWERS>>>only variable
Product costs under absorption costing are - <<<<CORRECT
ANSWERS>>>fixed manufacturing overhead, direct materials,
variable manufacturing overhead
Accounting (7th Edition) by
Karen Wilken Braun
A fixed cost that supports the operations of more than one
segment, but is not traceable in whole or part to any one segment
is a(n) _____ fixed cost. - <<<<CORRECT ANSWERS>>>common
The number of units produced does not affect net operating
income when using _____ costing - <<<<CORRECT
ANSWERS>>>variable
The segment margin is obtained by deducting the ______ fixed
costs of a segment from the segment's ______. - <<<<CORRECT
ANSWERS>>>traceable; contribution margin
Costs are categorized by function when using costing _______ and
by behavior when using ______ costing - <<<<CORRECT
ANSWERS>>>absorption; variable
Absorption costing can lead managers to mistakenly believe that
fixed manufacturing overhead costs will ______ as the number of
, units produced increases. - <<<<CORRECT
ANSWERS>>>increase in total
A segment should be discontinued when the segment: -
<<<<CORRECT ANSWERS>>>has a contribution margin that
cannot cover traceable fixed costs; cannot cover its own costs
Two general costing approaches used by manufacturing
companies to prepare income statements are _____ costing and
_____ costing - <<<<CORRECT ANSWERS>>>variable; absorption
Variable costing income statements are based upon a ________
format. - <<<<CORRECT ANSWERS>>>contribution margin
Variable costing treats ______ manufacturing costs as product
costs. - <<<<CORRECT ANSWERS>>>only variable
Product costs under absorption costing are - <<<<CORRECT
ANSWERS>>>fixed manufacturing overhead, direct materials,
variable manufacturing overhead
