Managerial Accounting Exam and 100%verified solutions

$120,000 - Fixed cost per unit is $10 when 12,000 units are produced and $3 when 40,000 units are produced. What is the total fixed cost when nothing is produced? A variable cost in total changes in direct proportion to changes in output within the relevant range. - Which of the following is true of a variable cost? a. are the only accountants permitted to serve as external auditors. b. may be held responsible to provide assurance concerning the reliability of a firm's financial statements. c. must pass a national examination and be licensed by the state in which they practice. - Accountants that have a Certificate in Public Accounting (CPA): a. decrease in total as output decreases. b. stay constant on a per unit basis as output changes. c. increase in total as output increases. - Variable costs within the relevant range a. Financial accounting is directed toward external users. b. Financial accounting is able to provide audited, objective financial information. c. Financial accounting is subject to externally imposed rules. - Which of the following statements is true of financial accounting? a. indirect labor. b. indirect materials. c. factory supplies. - Overhead includes An indirect cost is assigned to a cost object using allocation. - Which of the following statements best describes an indirect cost?direct materials - Which of the following would not be a period cost? discretionary fixed cost - Cost of advertising is an example of a _____. insurance and depreciation are fixed costs. - Taran Company incurred the following costs for the months of January and February. Type of Cost January February Insurance $5,000 $5,000 Utilities 4,000 5,000 Depreciation 3,500 3,500 Materials 10,000 20,000 Managerial Accounting - The provision of accounting information for internal users is known as Price must be greater than cost for a firm to earn income. - Which of the following is true of price? To produce information for external users, including investors, creditors, customers, suppliers, and government agencies - Which of the following is not an objective of managerial accounting