Accounting 213 Week 1 HW
Davidson Company has sales of $100,000, variable cost of goods of $55,000, variable selling expenses of $15,000, variable administrative expenses of $6,000, fixed selling expenses of $7,000, and fixed administrative expenses of $9,000. What is Davidson's contribution margin?
$40,000
Manufacturing costs include all of the following categories except
Administrative Costs
Which of the following statements about opportunity costs is not correct?
An opportunity cost cannot be changed by any decision made now or in the future
A ____________________ is a cost that is incurred to support a number of cost objects but cannot be traced to them individually.
Common Cost
What are the pillars of managerial accounting?
Controlling, Decision Making, Planning
Cost of X - ray film used in the old machine
Differential Cost
Cost of electricity to run the X - ray machines
Differential Cost
Cost of the new color laser printer
Differential Cost
The cost of maintaining the old machine
Differential Cost
Adventure Holiday sells thousands of tour packages each month through its various branches. A branch manager's salary would be a(n) _________________ of the branch.
Direct Cost
Catered food served to patients; A particular patient
Direct Cost
Lab tests by outside contractor; A particular department
Direct Cost
The salary of the head of the Laboratory Department
None
The salary of the head of the Radiology Department
None
Benefits from a new DNA analyzer
Opportunity Cost
Advertising costs.
Period Cost
Cost of leasing the corporate jet used by the company's executives.
Period Cost
Depreciation on salespersons' cars.
Period Cost
Materials used for boxing products in shipment overseas (Units are not normally boxed).
Period Cost
Salaries of personnel who work in the finished goods warehouse.
Period Cost
The cost of renting rooms at a Florida resort for the annual sales conference.
Period Cost
The wages of receptionist in the administrative offices.
Period Cost
Depreciation on chairs and tables in the factory lunchroom.
Product Cost
Factory supervisors' salaries.
Product Cost
Heat, water, and power consumed in the factory.
Product Cost
How should the wages of a sheet metal worker in a fabrication plant be classified?
Product Cost
If a firm increases its activity level, what happens?
some costs will change, other costs will remain the same
When using least - squares regression, R squared represents __________________.
the measure of goodness of fit
Excel depicts the least - squares regression results using the equation form __________________.
y = bx + a
Lab tests by outside contractor; A particular patient
Direct Cost
Prescription drugs; A particular patient
Direct Cost
The salary of the head of pediatrics; The pediatric department
Direct Cost
The wages pediatric nurses; The pediatric department
Direct Cost
Manufacturing costs include what?
Direct Labor, Direct Materials, Manufacturing Overhead
Materials that become an integral part of the finished product and whose costs can be conveniently traced to the finished product are called what?
Direct Materials
Which of the following is a business management perspective that goes beyond the numbers to enable intelligent planning, controlling, and decision making?
Enterprise Risk Management Perspective, Corporate Social Responsibility Perspective, Leadership Perspective
Emphasizes financial consequences of past activities
Financial Accounting
Emphasizes objectivity
Financial Accounting
Adventure Holiday sells thousands of tour packages each month through its various branches. A branch manager's salary would be a(n) ___________________ of selling a tour package.
Indirect Cost
Heating the hospital; The pediatric department
Indirect Cost
Hospital chaplain's salary; A particular patient
Indirect Cost
The salary of the head of pediatrics; A particular pediatric patient
Indirect Cost
Which of the following is true of the contribution approach?
It separates costs into fixed and variable categories.
Which of the following is not a business management perspective that goes beyond the numbers to enable intelligent planning, controlling, and decision making?
Lean Production Perspective
Emphasizes decisions affecting the future
Managerial Accounting
Emphasizes relevance
Managerial Accounting
Not required to follow GAAP
Managerial Accounting
The _______________ requires that the costs incurred to generate a particular revenue should be recognized as expenses in the same period that the revenue is recognized.
Matching Principle
All of the following are pillars of managerial accounting except
Maximizing Profit
Rent on the space occupied by Radiology
None
Lubricants used for machine maintenance.
Product Cost
Rent on equipment used in the factory.
Product Cost
Soap and paper towels used by factory workers at the end of a shift.
Product Cost
The cost of packaging the company's product.
Product Cost
Workers' compensation insurance for factory employees.
Product Cost
Planning involves
Setting goals and objectives
Cost of the old X - ray machine
Sunk Cost
An opportunity cost is the potential benefit that is given up when one alternative is selected over another.
True
Opportunity costs are costs that must be explicitly considered in every decision a manager makes.
True
Opportunity costs are not usually found in accounting records.
True