Cost Accounting - Exam 1 with answers graded A+ 100% verified

cost of goods sold, including fixed indirect manufacturing costs - Q: The term "gross margin" for a manufacturing firm refers to the excess of sales over: period cost - Q: Doran Technical Company has set up a toll-free telephone line for customer inquiries regarding computer hardware produced by the company. The cost of this toll-free line would be classified as which of the following? false - True or False? The primary goal of the cost accounting system is to provide managers with information to prepare their annual financial statements. subtracting ending direct materials from direct materials available for production - Q: The amount of direct materials issued to production is found by: all fixed & variable manufacturing costs - Q: Under full absorption costing, which of the following are included in product costs? can be either a variable cost or a fixed cost - Q: Manufacturing overhead: manufacturing overhead - Q: The three basic elements of manufacturing cost are direct materials, direct labor, &: true - True or False? The cost of an item is the sacrifice of resources made to acquire it. $600,000 Fixed Costs = 2,200,000 * 0.3 - 180,000 = $480,000 480,000 / 0.3 = $1,600,000 2,200,000 - 1,600,000 = $600,000 - Q: Lake Sales had $2,200,000 in sales last month. The contribution margin ratio was 30% & operating profits were $180,000. What is Lake's margin of safety in sales dollars? true - True or False? If an organization's fixed costs are $2,400, tax rate is 40%, & contribution margin is $5,200, then its after-tax operating profits are $1,680. $266,667 (60 - 33 - 9) / 60 = 30%