Acct 1020

The advertising costs that Pepsi incurred to air its commercials during the Super Bowl can best be described as a:

fixed cost

Which of the following items would not be found on a contribution format income statement?

gross margin

product cost

inventory

engineering cost approach

includes analysis of what cost behavior should be is based on an engineers evaluation of the product methods.

fixed costs-

increase risk by adding operating leverage

The degree of operating leverage can be calculated as:

contribution margin divided by net operating income.

Slappy Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 20,000 units, the lease cost was $482,000. To the nearest whole cent, what should be the average lease cost per unit at a sales volume of 19,200 units in a month? (Assume that this sales volume is within the relevant range.)

25.10

At a sales volume of 35,000 units, Thoma Corporation's sales commissions (a cost that is variable with respect to sales volume) total $448,000. To the nearest whole dollar, what should be the total sales commissions at a sales volume of 33,200 units? (Assume that this sales volume is within the relevant range.)

424,960

Slappy Corporation leases its corporate headquarters building. This lease cost is fixed with respect to the company's sales volume. In a recent month in which the sales volume was 20,000 units, the lease cost was $482,000. To the nearest whole dollar, what should be the total lease cost at a sales volume of 16,900 units in a month? (Assume that this sales volume is within the relevant range.)

482,000

Sperberg Corporation's operating leverage is 4.2. If the company's sales increase by 12.75%, its net operating income should increase by about:

53.55

Jumpst Corporation uses the cost formula Y = $3,600 + $0.30X for the maintenance cost in Department B, where X is machine-hours. The August budget is based on 20,000 hours of planned machine time. Maintenance cost expected to be incurred during August is:

9600

Cost behavior summary

Activity In total Per unit VC Changes Remains Proportionally Constant FC Remains Changes Constant Inversely MC Changes Changes

Period costs =

Administrative wages and salaries + Sales staff salaries + Corporate headquarters building rent + Marketing

Certified Management Accountants (CMA) must complete a specified number of continuing professional education credits each reporting period. Which of the four standards of ethical conduct issued by the Institute of Management Accountants likely motivated this requirement?

Competence

Four Standards of Ethical Conduct for Management Accountants

Competence Confidentiality integrity Objectivity

Degree of operating leverage =

Contribution margin ÷ Net operating income

Which of the following would be considered a product cost for external financial reporting purposes?

Cost of sand spread on the factory floor to absorb oil from manufacturing machines.

Mangerial Acct

Past present future inside has to provide feedback economic and physical data as well as financial data continuous reporting Estimates

1. Salary of the company president—$32,800. 2. Salary of the vice president of manufacturing—$15,100. 3. Salary of the chief financial officer—$19,400. 4. Salary of the vice president of marketing—$15,000. 5. Salaries of middle managers (department heads, production supervisors) in manufacturing plant—$187,000. 6. Wages of production workers—$944,000. 7. Salaries of administrative secretaries—$111,000. 8. Salaries of engineers and other personnel responsible for maintaining production equipment—$175,000. 9. Commissions paid to sales staff—$246,000.

Period Product Period Period Product Product Period Product Period

Contribution margin

Sales-VC

operating leverage

a measure of the extent to which fixed costs are being used in a organization to change profit

the process of allocating the manufactured overhead to products

cost allocation

selling and mkt costs

cost necessary to get the order and deliver the product

Selling, general and administrative costs

all costs that are not manufacturing costs

administrative costs

all executive organizational or clerical costs

Manufacturing overhead

costs that cannot be easily traced to specific products. indirect costs, indirect materials- glue nails papers indirect labor- cost of salaries paid to production supervisors, inspectors, and maintenance personal rent cost for manufacturing utility cost depreciation security the cost for preparing equipment (setup costs) maintenance cost for the manufacturing facility and equipment

Which of the following is correct

financial acct must follow GAAP while managerial acct is not required to follow GAAP CEO has to sign off for SCC

Financial acct

outside past only historical based financial data delayed with emphasis on annual reports Factual

For a lamp manufacturing company, the cost of the insurance on its vehicles that deliver lamps to customers is best described as a:

period costs

The salary of the president of a manufacturing company would be classified as which of the following?

period costs

incurred

period costs

COGS

purchased+beginning-ending (if ending is more than beginning number you subtract that number, visa versa)

cost behavior

refers to how a cost will react to changes in the level of activity

Variable cost:

remains constant on a per unit basis as the number of units produced increases.

period cost

salaries expense

how to calculate the change in net income

subtract the difference in net income and divide by the first net income then times by 100

Which of the following is not one of the four Standards of Ethical Conduct for Management Accountants? Competence Team spirit Integrity Confidentiality

team spirit

The term "relevant range" means the range of activity within which:

the assumptions about fixed and variable cost behavior are reasonably valid.

Assuming that Spiller made 4,700 units of product and sold 3,525 of them during the month of September, determine the amount of payroll cost that would be included in cost of goods sold

total product cost/ units of product * number sold

high low method: change in cost/ change in unit=

variable cost per unit