Managerial Accounting

The contribution margin for September was:

$2,122,900

In making the decision to buy the model 220 machine rather than the model 370 machine, the differential cost was:

$20,000 (DC=$360,000-340,000=$20,000

In making the decision to buy the model 220 machine rather than the model 370 machine. The sunk cost was:

$348,000 (sunk cost=cost of old machine)

In making the decision to invest in the model 220 machine, the opportunity cost was:

$411,000

For financial reporting purposes, the total amount of product costs incurred to make 5,000 units closest to:

$65,750

the cost of direct materials are classified as

Conversion cost=no, Manufacturing cost=yes, Prime cost=yes

Materials used in a factory that are not an integral part of the final product, such as cleaning supplies, should be classified as:

Manufacturing overhead

Which of the following is an objective of managerial accounting

To provide information to business managers to assist them in controlling their business

Manufacturing overhead includes

all manufacturing costs except direct labor and direct materials

Which of the following is NOT a period cost

depreciation of factory maintenance equipment