MGMT 640- FINAL PART 1
A typical use of managerial accounting is to:
help investors and creditors assess the financial position of the company.
help management get a clean audit report
help the marketing manager decide which product promotion to implement
help the SEC decide whether management is in compliance of its policies.
Question 1/1
2 point
Three costs incurred by Pitt Company are summarized below:
1,000 units 2,000 units
Cost A $10,000 $15,000
Cost B $21,000 $21,000
Cost C $16,000 $32,000
Which of these costs are variable?
A, B, and C
A and B
A only
C only
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SOLUTION:
Variable costs increase or decrease in proportion to increases or decreases in level of business activity.
, Cost Per Unit Cost t 2,000
(1,000 Units) Formula Units Formula
Cost A $ 10.00 $10,000/1,000 $ 20,000 $10*2,000
Cost B $ 21.00 $21,000/1,000 $ 42,000 $21*2,000
Cost C $ 16.00 $16,000/1,000 $ 32,000 $16*2,000
True or False: Revenues and costs that differ are relevant and should be
considered in incremental analysis.
True
False
Question 1/1
4 point
Bellfont Company produces door stoppers. August production costs are below:
Door Stoppers produced 79,000
Direct material (variable) $20,000
Direct labor (variable) 40,000
Supplies (variable) 20,000
Supervision (fixed) 26,700
Depreciation (fixed) 22,400
Other (fixed) 5,600
In September, Bellfont expects to produce 100,000 door stoppers. Assuming
no structural changes, what is Bellfont’s production cost per door stopper for
September?
Answer:
1.55
A typical use of managerial accounting is to:
help investors and creditors assess the financial position of the company.
help management get a clean audit report
help the marketing manager decide which product promotion to implement
help the SEC decide whether management is in compliance of its policies.
Question 1/1
2 point
Three costs incurred by Pitt Company are summarized below:
1,000 units 2,000 units
Cost A $10,000 $15,000
Cost B $21,000 $21,000
Cost C $16,000 $32,000
Which of these costs are variable?
A, B, and C
A and B
A only
C only
Hide Feedback
SOLUTION:
Variable costs increase or decrease in proportion to increases or decreases in level of business activity.
, Cost Per Unit Cost t 2,000
(1,000 Units) Formula Units Formula
Cost A $ 10.00 $10,000/1,000 $ 20,000 $10*2,000
Cost B $ 21.00 $21,000/1,000 $ 42,000 $21*2,000
Cost C $ 16.00 $16,000/1,000 $ 32,000 $16*2,000
True or False: Revenues and costs that differ are relevant and should be
considered in incremental analysis.
True
False
Question 1/1
4 point
Bellfont Company produces door stoppers. August production costs are below:
Door Stoppers produced 79,000
Direct material (variable) $20,000
Direct labor (variable) 40,000
Supplies (variable) 20,000
Supervision (fixed) 26,700
Depreciation (fixed) 22,400
Other (fixed) 5,600
In September, Bellfont expects to produce 100,000 door stoppers. Assuming
no structural changes, what is Bellfont’s production cost per door stopper for
September?
Answer:
1.55
