3/9/24,y10:26yAM Testy Bank-Ch9-CostyAccounting
CostyAccounting,y14ey(Horngren/Datar/Rajan)y Cha
ptery9y InventoryyCostingyandyCapacityyAnalysis
Objectivey9.1
1) Whichyofytheyfollowingycost(s)yareyinventoriedywhenyusingyvariableycosting?
A) directy manufacturingy costs
B) variabley marketingycosts
C) fixedy manufacturingy costs
D) BothyAyandyByareycorrect
.y Answer:y A
Diff:y1
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Reflectiveythinking
2) Whichyofytheyfollowingycost(s)yareyinventoriedywhenyusingyabsorptionycosting?
A) directy manufacturingy costs
B) variabley marketingycosts
C) fixedy manufacturingy costs
D) BothyAyandyCyareycorrect
.y Answer:y D
Diff:y1
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
3) isyaymethodyofyinventoryycostingyinywhichyallyvariableymanufacturingycostsy(directya
ndy indirect)yareyincludedyasyinventoriableycostsyandyallyfixedymanufacturingycostsyareyexcluded.
A) Variableycosting
B) Mixedycosting
C) Absorptiony costing
D) Standardycosting
y Answer:y A
Diff:y1
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
4) Absorptionycostingyisyrequiredyforyallyofytheyfollowingyexcept:
A) generallyyacceptedyaccountingy principles
B) determiningyaycompetitive ysellingyprice
C) externalyreportingytoyshareholders
D) incomeytaxyreporting
y Answer:y B
Diff:y2
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
1
Copyrighty©y2012yPearsonyEducation, yInc.
about:blank 1/68
,3/9/24,y10:26yAM Testy Bank-Ch9-CostyAccounting
5) Absorptiony costing:
A) expensesymarketingycostsyasycostyofygoodsysold
B) treatsydirectymanufacturingycostsyasyayperiodycost
C) includesyfixedy manufacturingyoverheadyasyany inventoriableycost
D) isyrequiredyforyinternalyreportsytoymanager
sy Answer:y C
Diff:y3
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
6) Variableycosting:
A) expensesyadministrative ycostsyasycostyofygoodsysold
B) treatsydirectymanufacturingycostsyasyayproductycost
C) includesyfixedy manufacturingyoverheadyasyany inventoriableycost
D) isyrequiredyforyexternalyreportingytoyshareholder
sy Answer:y B
Diff:y3
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Reflectiveythinking
7) method(s)yexpense(s)yvariabley marketingy costsyinytheyperiodyincurred.
A) Variableycosting
B) Absorptiony costing
C) Throughputy costing
D) Allyofytheseyanswersyareycorrect
.y Answer:y D
Diff:y1
Terms:y variableycosting,yabsorptionycosting,ythroughputycostingy Object
ive:y 1
AACSB:y Reflectiveythinking
8) method(s)yinclude(s)y fixedy manufacturingy overheadycostsyasyinventoriableycosts.
A) Variableycosting
B) Absorptiony costing
C) Throughputy costing
D) Allyofytheseyanswersyareycorrect
.y Answer:y B
Diff:y1
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
2
Copyrighty©y2012yPearsonyEducation, yInc.
about:blank 2/68
,3/9/24,y10:26yAM Testy Bank-Ch9-CostyAccounting
9) method(s)yexpense(s)ydirecty materialycostsyasycostyofygoodsysold.
A) Variableycosting
B) Absorptiony costing
C) Throughputy costing
D) Allyofytheseyanswersyareycorrect
.y Answer:y D
Diff:y1
Terms:y variableycosting,yabsorptionycosting,ythroughputycostingy Object
ive:y 1
AACSB:y Reflectiveythinking
10) method(s)yisyrequiredyforytaxyreportingypurposes.
A) Variableycosting
B) Absorptiony costing
C) Throughputy costing
D) Allyofytheseyanswersyareycorrect
.y Answer:y B
Diff:y1
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
11) isyaymethodyofyinventoryycostingyinywhichyonlyyvariableymanufacturingycostsyareyinclud
edy asyinventoriableycosts.
A) Fixedycosting
B) Variableycosting
C) Absorptiony costing
D) Mixedycosting
y Answer:y B
Diff:y1
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Reflectiveythinking
12) Variableycostingyregards yfixedymanufacturingyoverheadyasya(n):
A) administrativey cost
B) inventoriabley cost
C) periodycost
D) productycost
y Answer:y C y
Diff:y1
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Reflectiveythinking
3
Copyrighty©y2012yPearsonyEducation, yInc.
about:blank 3/68
, 3/9/24,y10:26yAM Testy Bank-Ch9-CostyAccounting
13) Theyonlyydifferenceybetweenyvariableyandyabsorptionycostingyisytheyexpensingyof:
A) directy manufacturingy costs
B) variabley marketingycosts
C) fixedy manufacturingy costs
D) BothyAyandyCyareycorrect
.y Answer:y C
Diff:y2
Terms:y variableycosting,yabsorptionycostingy Object
ive:y 1
AACSB:y Reflectiveythinking
Answerytheyfollowingyquestions yusingytheyinformationybelow:
Gloria'syDecoratingyproduces yandysellsyaymantelyclockyfory$80yperyunit.yIny2011,y50,000yclocks ywerey pr
oducedyandy40,000ywereysold. yOtheryinformationyforytheyyearyincludes:
Directymaterials
$30.00yperyunit
y Directymanufacturingylabor
$y 2.00yperyuni
ty Variableymanufacturingycostsy $y3.00yperyunit
y Sales ycommissions
$y 5.00yperypar
ty Fixedymanufacturingycosts
$25.00yperyunit
y Administrative yexpenses, yallyfixedy$15.00ypery
unit
14) Whatyisytheyinventoriable ycostyperyunit yusingyvariable ycosting?
A) $32
B) $35
C) $40
D) $60
Answer:y B
Explanation:y B)y$30.00y+y$2.00y+y$3.00y=y$35.00
y Diff:y2
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Analyticalyskills
15) Whatyisytheyinventoriableycostyperyunityusingyabsorptionycosting?
A) $32
B) $35
C) $60
D) $80
Answer:y C
Explanation:y C)y$30y+y$2y+y$3y+y$25y=y$60y
Diff:y2
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Analyticalyskills
4
Copyrighty©y2012yPearsonyEducation, yInc.
about:blank 4/68
CostyAccounting,y14ey(Horngren/Datar/Rajan)y Cha
ptery9y InventoryyCostingyandyCapacityyAnalysis
Objectivey9.1
1) Whichyofytheyfollowingycost(s)yareyinventoriedywhenyusingyvariableycosting?
A) directy manufacturingy costs
B) variabley marketingycosts
C) fixedy manufacturingy costs
D) BothyAyandyByareycorrect
.y Answer:y A
Diff:y1
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Reflectiveythinking
2) Whichyofytheyfollowingycost(s)yareyinventoriedywhenyusingyabsorptionycosting?
A) directy manufacturingy costs
B) variabley marketingycosts
C) fixedy manufacturingy costs
D) BothyAyandyCyareycorrect
.y Answer:y D
Diff:y1
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
3) isyaymethodyofyinventoryycostingyinywhichyallyvariableymanufacturingycostsy(directya
ndy indirect)yareyincludedyasyinventoriableycostsyandyallyfixedymanufacturingycostsyareyexcluded.
A) Variableycosting
B) Mixedycosting
C) Absorptiony costing
D) Standardycosting
y Answer:y A
Diff:y1
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
4) Absorptionycostingyisyrequiredyforyallyofytheyfollowingyexcept:
A) generallyyacceptedyaccountingy principles
B) determiningyaycompetitive ysellingyprice
C) externalyreportingytoyshareholders
D) incomeytaxyreporting
y Answer:y B
Diff:y2
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
1
Copyrighty©y2012yPearsonyEducation, yInc.
about:blank 1/68
,3/9/24,y10:26yAM Testy Bank-Ch9-CostyAccounting
5) Absorptiony costing:
A) expensesymarketingycostsyasycostyofygoodsysold
B) treatsydirectymanufacturingycostsyasyayperiodycost
C) includesyfixedy manufacturingyoverheadyasyany inventoriableycost
D) isyrequiredyforyinternalyreportsytoymanager
sy Answer:y C
Diff:y3
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
6) Variableycosting:
A) expensesyadministrative ycostsyasycostyofygoodsysold
B) treatsydirectymanufacturingycostsyasyayproductycost
C) includesyfixedy manufacturingyoverheadyasyany inventoriableycost
D) isyrequiredyforyexternalyreportingytoyshareholder
sy Answer:y B
Diff:y3
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Reflectiveythinking
7) method(s)yexpense(s)yvariabley marketingy costsyinytheyperiodyincurred.
A) Variableycosting
B) Absorptiony costing
C) Throughputy costing
D) Allyofytheseyanswersyareycorrect
.y Answer:y D
Diff:y1
Terms:y variableycosting,yabsorptionycosting,ythroughputycostingy Object
ive:y 1
AACSB:y Reflectiveythinking
8) method(s)yinclude(s)y fixedy manufacturingy overheadycostsyasyinventoriableycosts.
A) Variableycosting
B) Absorptiony costing
C) Throughputy costing
D) Allyofytheseyanswersyareycorrect
.y Answer:y B
Diff:y1
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
2
Copyrighty©y2012yPearsonyEducation, yInc.
about:blank 2/68
,3/9/24,y10:26yAM Testy Bank-Ch9-CostyAccounting
9) method(s)yexpense(s)ydirecty materialycostsyasycostyofygoodsysold.
A) Variableycosting
B) Absorptiony costing
C) Throughputy costing
D) Allyofytheseyanswersyareycorrect
.y Answer:y D
Diff:y1
Terms:y variableycosting,yabsorptionycosting,ythroughputycostingy Object
ive:y 1
AACSB:y Reflectiveythinking
10) method(s)yisyrequiredyforytaxyreportingypurposes.
A) Variableycosting
B) Absorptiony costing
C) Throughputy costing
D) Allyofytheseyanswersyareycorrect
.y Answer:y B
Diff:y1
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Reflectiveythinking
11) isyaymethodyofyinventoryycostingyinywhichyonlyyvariableymanufacturingycostsyareyinclud
edy asyinventoriableycosts.
A) Fixedycosting
B) Variableycosting
C) Absorptiony costing
D) Mixedycosting
y Answer:y B
Diff:y1
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Reflectiveythinking
12) Variableycostingyregards yfixedymanufacturingyoverheadyasya(n):
A) administrativey cost
B) inventoriabley cost
C) periodycost
D) productycost
y Answer:y C y
Diff:y1
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Reflectiveythinking
3
Copyrighty©y2012yPearsonyEducation, yInc.
about:blank 3/68
, 3/9/24,y10:26yAM Testy Bank-Ch9-CostyAccounting
13) Theyonlyydifferenceybetweenyvariableyandyabsorptionycostingyisytheyexpensingyof:
A) directy manufacturingy costs
B) variabley marketingycosts
C) fixedy manufacturingy costs
D) BothyAyandyCyareycorrect
.y Answer:y C
Diff:y2
Terms:y variableycosting,yabsorptionycostingy Object
ive:y 1
AACSB:y Reflectiveythinking
Answerytheyfollowingyquestions yusingytheyinformationybelow:
Gloria'syDecoratingyproduces yandysellsyaymantelyclockyfory$80yperyunit.yIny2011,y50,000yclocks ywerey pr
oducedyandy40,000ywereysold. yOtheryinformationyforytheyyearyincludes:
Directymaterials
$30.00yperyunit
y Directymanufacturingylabor
$y 2.00yperyuni
ty Variableymanufacturingycostsy $y3.00yperyunit
y Sales ycommissions
$y 5.00yperypar
ty Fixedymanufacturingycosts
$25.00yperyunit
y Administrative yexpenses, yallyfixedy$15.00ypery
unit
14) Whatyisytheyinventoriable ycostyperyunit yusingyvariable ycosting?
A) $32
B) $35
C) $40
D) $60
Answer:y B
Explanation:y B)y$30.00y+y$2.00y+y$3.00y=y$35.00
y Diff:y2
Terms:y variableycostingy Objecti
ve:y 1
AACSB:y Analyticalyskills
15) Whatyisytheyinventoriableycostyperyunityusingyabsorptionycosting?
A) $32
B) $35
C) $60
D) $80
Answer:y C
Explanation:y C)y$30y+y$2y+y$3y+y$25y=y$60y
Diff:y2
Terms:y absorptionycostingy Obje
ctive:y 1
AACSB:y Analyticalyskills
4
Copyrighty©y2012yPearsonyEducation, yInc.
about:blank 4/68
