Accounting - Jacob made

Which of the following are examples of a mixed cost? I. A building that is used for both manufacturing and sales activities. II. An employee's compensation, which consists of a flat salary plus a commission. III. Depreciation that relates to five different machines. IV. Maintenance cost that must be split between sales and administrative offices.

II. An employee's compensation, which consists of a flat salary plus a commission.

Which costs will change with a decrease in activity within the relevant range?

Unit fixed cost and total variable costs

What is considered a prime cost and a conversion cost?

Direct labor

Cost of Goods Sold is $200,000, the beginning balance of Finished Goods is $50,000, the ending balance in Finished Goods is $100,000, and the ending balance in Work in Process is $10,000. What is the Cost of Goods Manufactured? a. $100,000 b. $250,000 c. $50,000 d. None of the above.

b. $250,000

Variable costs are costs that: a) vary in total directly and proportionately with changes in the activity level. b) remain the same per unit at every activity level. c) None of the above. d) Both a and b above.

d) Both a and b above.

An example of a discretionary fixed cost would be: a) depreciation on equipment b) rent on a factory building c) salaries of top management d) none of the above

d) none of the above

The costs associated with a company's basic facilities, equipment, and organization are known as: a) committed fixed costs b) discretionary fixed costs c) mixed costs d) variable costs

a) committed fixed costs

Which of the following would not typically be classified as a discretionary fixed cost? a. Property taxes. b. Employee development (education) programs. c. Advertising. d. Charitable contributions.

a. Property taxes.

Discretionary fixed costs a. have a planning horizon that covers many years. b. may be reduced for short periods of time with minimal damage to the long- run goals of the organization. c. cannot be reduced for even short periods of time without resulting in significant damage to the long-run goals of the organization. d. are most effectively controlled through the effective utilization of plant and organization.

b. may be reduced for short periods of time with minimal damage to the long- run goals of the organization.

The relevant range is : a) the range of activity in which variable costs are constant in total. b) the range of activity in which fixed costs per unit are expected to remain constant. c) the range over which total fixed costs is not expected to change. d) the range of activity in which variable cost per unit is expected to change.

c) the range over which total fixed costs is not expected to change.

The beginning balance of Finished Goods is $50,000, the ending balance in Finished Goods is $100,000, and Cost of Goods Manufactured is $200,000. What is Cost of Goods Sold? a. $100,000 b. $250,000 c. $150,000 d. None of the above

c. $150,000

The costs of all work not yet completed is in a. raw materials. b. manufacturing overhead. c. work in process. d. accounts payable.

c. work in process.

Which of the following is not an example of a committed fixed cost? a. Property taxes. b. Depreciation on buildings. c. Salaries of management personnel. d. Contributions to charitable organizations.

d. Contributions to charitable organizations.

The inventory accounts of a manufacturing firm include: a. raw materials. b. finished goods. c. work in process d. all of the above.

d. all of the above.

As a firm begins to operate outside the relevant range, the accuracy of cost estimates for fixed and variable costs: Fixed Variable a. increases increases b. increases decreases c. decreases increases d. decreases decreases

d. decreases decreases

The costs of all work completed but not yet sold is in a. raw materials. b. manufacturing overhead. c. work in process. d. finished goods.

d. finished goods.

Which of the following is a period cost: a. raw materials costs. b. manufacturing plant maintenance. c. wages for production line workers. d. salary for the vice president of finance.

d. salary for the vice president of finance.