Chapter 05 Cost Behavior: Analysis and Use Answer Key True / False Questions 1. Economists correctly point out that many costs that the accountant classifies as variable are actually curvilinear. TRUE AACSB: Reflective Thinking AICPA BB: Critical Thinking AICPA FN: Measurement Bloom ’s: Comprehension Learning Objective: 1 Level: Easy 2. A cost that is obtained in large chunks and that increases or decreases only in response to fairly wide changes in the activity
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Prologue Managerial Accounting and the Business Environment Study Suggestions ( The prologue describes important aspects of the contemporary business environment. While there are no written assignments‚ you should be familiar with the major ideas as background for your study of managerial accounting. HIGHLIGHTS A. In many industries‚ a company that does not continually improve will find itself quickly overtaken by competitors. The text discusses
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Flashcard Machine - create‚ study and share online flash cards Term A budget can be a means of communicating a company ’s objectives to external parties. (T/F) | | Definition False | | | Term A benefit of budgeting is that it provides objectives for evaluating performance (T/F) | | Definition True | | | Term A budget can be used as a basis for evaluating performance (T/F) | | Definition True | | | Term A well-developed budget can operate and enforce itself. (T/F) |
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Factory Overhead: Variable (P3.00 per direct labor hour) 15.00 Fixed (P4.00 per direct labor hour) 20.00 Standard Cost per unit P 80.00 Normal volume per month is 40‚000 standard labor hours. Jejemon’s january budget was based on normal volume. During January Jejemon’s produced 7‚800 units‚ with records indicating the following: Direct Materials purchased 25‚000 lbs @ P2.60 Direct Materials used 23‚100 lbs Direct labor 40‚100 hours @ P7.30 Factory Overhead P300
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Chapter 1 Managerial Accounting and Cost Concepts Solutions to Questions 1-1 The three major elements of product costs in a manufacturing company are direct materials‚ direct labor‚ and manufacturing overhead. 1-2 a. Direct materials are an integral part of a finished product and their costs can be conveniently traced to it. b. Indirect materials are generally small items of material such as glue and nails. They may be an integral part of a finished product but their costs can be
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PAPER F5 PERFORMANCE MANAGEMENT P R A C T I C E & R E V I S I O N K I T In this January 2010 new edition We discuss the best strategies for revising and taking your ACCA exams We show you how to be well prepared for your exam We give you lots of great guidance on tackling questions We show you how you can build your own exams We provide you with three mock exams including the December 2009 exam We provide the ACCA examiner ’s answers as well as our own to the June and December 2009 exams as
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TO: Professor and Manager FROM: SUBJECT: Forrest Hill Evaluation of Profits and Costing Systems DATE: November 1‚ 2013 Executive Summary Throughout this report‚ our team will describe how we used activity based costing to allocate costs‚ illustrate why the traditional system is faulty‚ and recommend changes that Forest Hill Paper Company should consider implementing in the near future. After closely reviewing the financial and production data‚ our accounting team has found that your
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period. D. some period costs as well as some product costs. 2. During the month of August‚ direct labor cost totaled $13‚000 and direct labor cost was 20% of prime cost. If total manufacturing costs during August were $88‚000‚ the manufacturing overhead was: A. $52‚000 B. $75‚000 C. $65‚000 D. $23‚000 0.20 x Prime cost = Direct labor 0.20 x Prime cost = $13‚000 Prime cost = $65‚000 Prime cost = Direct materials + Direct labor $65‚000 = Direct materials + $13‚000 Direct materials = $52
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31 October 2014 Case Assignment 1 Upside Down‚ Incorporated designs custom storage spaces to eliminate clutter in both residential and business settings. The following data pertain to a recent reporting period. Requirements a. Use ABC to compute overhead rates for each activity. b. Assign costs to a 3‚000 square foot job that requires 70 contact hours‚ 20 design hours‚ and 14 days to complete. a. Client Consultation: $100‚000/500 contact hours=$200 per contact hr Drawings: $75‚000/1‚000 design hours=$75
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Since the sales average is still above 150‚000‚ I agree with their assumptions. SGP is still able to keep its market share because of its great reputation. 2. Relevant costs Per sqft VC – direct labor and depreciation FC – direct material and shipping MC – variable manufacturing overhead‚ fixed manufacturing overhead‚ corporate overhead‚ selling & gen admin Total production VC – direct material‚ direct labor‚ shipping‚ and depreciation MC - variable manufacturing overhead‚ fixed manufacturing
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