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EU
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, TABLE OF CONTENTS
Test Bank for Introduction to Managerial Accounting, 9th Edition
ST
Author: Peter C. Brewer, Ray H. Garrison, and Eric W. Noreen (2021)
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Chapter 1. Managerial Accounting: An Overview
Chapter 2. Managerial Accounting and Cost Concepts
Chapter 3. Job-Order Costing: Calculating Unit Product Costs
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Chapter 4. Job-Order Costing: Cost Flows and External Reporting
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Chapter 5. Activity-Based Costing
Chapter 6. Process Costing
Chapter 7. Cost-Volume-Profit Relationships
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Chapter 8. Variable Costing and Segment Reporting: Tools for Management
Chapter 9. Master Budgeting
ED
Chapter 10. Flexible Budgets, Standard Costs, and Variance Analysis
Chapter 11. Performance Measurement in Decentralized Organizations
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Chapter 12. Differential Analysis: The Key to Decision Making
Chapter 13. Capital Budgeting Decisions
Chapter 14. Statement of Cash Flows and Financial Statement Analysis Integration
NN
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, Chapter 1
Student name:
ST
1) Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
UV
Average Cost
per Unit
Direct materials $ 6.55
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Direct labor $ 3.50
A_
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 2.60
Fixed selling expense $ 0.70
Fixed administrative expense $ 0.40
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Sales commissions $ 1.50
Variable administrative expense $ 0.45
For financial reporting purposes, the total amount of product costs incurred to make 4,000 units
ED
is closest to:
A) $10,400
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B) $45,800
C) $60,200
D) $56,200
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2) Which of the following statements are true?
1.Contribution margin and gross margin mean the same thing.
2. The contribution format income statement is used as an internal planning and decision-
SS
making tool. Its emphasis on cost behavior aids cost-volume-profit analysis, management
performance appraisals, and budgeting.
3. A contribution format income statement separates costs into fixed and variable categories,
EU
first deducting variable expenses from sales to obtain the contribution margin.
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A) None of the statements are true.
B) Both statements II and III are true.
C) Only statement I is true.
, Chapter 1
D) All of the statements are true.
ST
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3) Batterson 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
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28,000 units, the lease cost was $697,200.
A_
To the nearest whole cent, what should be the average lease cost per unit at a sales volume of
26,400 units in a month? (Assume that this sales volume is within the relevant range.)
M
A) $26.41
B) $23.88
ED
C) $24.90
D) $25.66
CO
NN
4) Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost
OI
per Unit
Direct materials $ 6.60
Direct labor $ 3.65
SS
Variable manufacturing overhead $ 1.65
Fixed manufacturing overhead $ 2.80
Fixed selling expense $ 0.70
EU
Fixed administrative expense $ 0.40
Sales commissions $ 0.50
Variable administrative expense $ 0.45
If 4,000 units are sold, the variable cost per unit sold is closest to:
R?
EU
SS
OI
NN
CO
ED
M
IA_
UV
ST
, TABLE OF CONTENTS
Test Bank for Introduction to Managerial Accounting, 9th Edition
ST
Author: Peter C. Brewer, Ray H. Garrison, and Eric W. Noreen (2021)
UV
Chapter 1. Managerial Accounting: An Overview
Chapter 2. Managerial Accounting and Cost Concepts
Chapter 3. Job-Order Costing: Calculating Unit Product Costs
I
Chapter 4. Job-Order Costing: Cost Flows and External Reporting
A_
Chapter 5. Activity-Based Costing
Chapter 6. Process Costing
Chapter 7. Cost-Volume-Profit Relationships
M
Chapter 8. Variable Costing and Segment Reporting: Tools for Management
Chapter 9. Master Budgeting
ED
Chapter 10. Flexible Budgets, Standard Costs, and Variance Analysis
Chapter 11. Performance Measurement in Decentralized Organizations
CO
Chapter 12. Differential Analysis: The Key to Decision Making
Chapter 13. Capital Budgeting Decisions
Chapter 14. Statement of Cash Flows and Financial Statement Analysis Integration
NN
OI
SS
EU
R?
, Chapter 1
Student name:
ST
1) Dake Corporation's relevant range of activity is 2,000 units to 6,000 units. When it
produces and sells 4,000 units, its average costs per unit are as follows:
UV
Average Cost
per Unit
Direct materials $ 6.55
I
Direct labor $ 3.50
A_
Variable manufacturing overhead $ 1.40
Fixed manufacturing overhead $ 2.60
Fixed selling expense $ 0.70
Fixed administrative expense $ 0.40
M
Sales commissions $ 1.50
Variable administrative expense $ 0.45
For financial reporting purposes, the total amount of product costs incurred to make 4,000 units
ED
is closest to:
A) $10,400
CO
B) $45,800
C) $60,200
D) $56,200
NN
OI
2) Which of the following statements are true?
1.Contribution margin and gross margin mean the same thing.
2. The contribution format income statement is used as an internal planning and decision-
SS
making tool. Its emphasis on cost behavior aids cost-volume-profit analysis, management
performance appraisals, and budgeting.
3. A contribution format income statement separates costs into fixed and variable categories,
EU
first deducting variable expenses from sales to obtain the contribution margin.
R?
A) None of the statements are true.
B) Both statements II and III are true.
C) Only statement I is true.
, Chapter 1
D) All of the statements are true.
ST
UV
3) Batterson 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
I
28,000 units, the lease cost was $697,200.
A_
To the nearest whole cent, what should be the average lease cost per unit at a sales volume of
26,400 units in a month? (Assume that this sales volume is within the relevant range.)
M
A) $26.41
B) $23.88
ED
C) $24.90
D) $25.66
CO
NN
4) Barredo Corporation's relevant range of activity is 3,000 units to 7,000 units. When it
produces and sells 5,000 units, its average costs per unit are as follows:
Average Cost
OI
per Unit
Direct materials $ 6.60
Direct labor $ 3.65
SS
Variable manufacturing overhead $ 1.65
Fixed manufacturing overhead $ 2.80
Fixed selling expense $ 0.70
EU
Fixed administrative expense $ 0.40
Sales commissions $ 0.50
Variable administrative expense $ 0.45
If 4,000 units are sold, the variable cost per unit sold is closest to:
R?
