NEMCC Robbie Coleman Principles of Accounting II
questions with verified answers
________ _________ cannot be identified with or traced to a cost object
Ans✓✓✓Indirect costs
A cost can be classified as an asset before it becomes an expense if it is
used to: Ans✓✓✓purchase or manufacture inventory
A Cost Object may be a: Ans✓✓✓Product, sales territory, a
department, or an activity such as research and development
A cost object may be as simple as a single product such as a
__________ or set of ______________ _________ or as complex as
Ans✓✓✓Simple as a single product such as a house or set of
architectural plans OR CAN BE as complex as an entire sales territory
A firm operated at 80% of capacity for the past year, during which fixed
costs were $205,000, variable costs were 60% of sales, and sales were
$1,050,000. Income from operations was
a.$630,000
b.$215,000
c.$420,000
d.$172,000 Ans✓✓✓b.$215,000
,A manufacturing business reports three types of inventory on its balance
sheet: Ans✓✓✓materials inventory, work in process inventory, finished
goods inventory
A plant manager's salary is a(n)
a.direct cost
b.period cost
c.indirect cost
d.direct cost and an indirect cost Ans✓✓✓c.indirect cost
All factory overhead costs are Ans✓✓✓indirect costs of the product
Another term for factory overhead is
a.supervisory cost
b.surplus
c.factory burden
d.period cost Ans✓✓✓c.factory burden
As production increases, the fixed cost per unit
a.remains the same
b.either increases or decreases, depending on the variable costs
c.increases
d.decreases Ans✓✓✓d.decreases
, Bryce Co. sales are $810,000, variable costs are $461,300, and income
from operations is $247,000. What is the contribution margin ratio?
a.57.0%
b.62.2%
c.43.0%
d.38.7% Ans✓✓✓c.43.0%
Compute conversion costs given the following data: direct materials,
$347,500; direct labor, $196,300; factory overhead, $187,900; and
selling expenses, $45,290.
a.$731,700
b.$543,800
c.$187,900
d.$384,200 Ans✓✓✓d.$384,200
Contribution margin is
a.another term for volume in the "cost-volume-profit" analysis
b.the excess of sales over variable costs
c.profit
d.the same as sales revenue Ans✓✓✓b.the excess of sales over variable
costs
Conversion costs Ans✓✓✓Direct Labor + Manufacturing Overhead
questions with verified answers
________ _________ cannot be identified with or traced to a cost object
Ans✓✓✓Indirect costs
A cost can be classified as an asset before it becomes an expense if it is
used to: Ans✓✓✓purchase or manufacture inventory
A Cost Object may be a: Ans✓✓✓Product, sales territory, a
department, or an activity such as research and development
A cost object may be as simple as a single product such as a
__________ or set of ______________ _________ or as complex as
Ans✓✓✓Simple as a single product such as a house or set of
architectural plans OR CAN BE as complex as an entire sales territory
A firm operated at 80% of capacity for the past year, during which fixed
costs were $205,000, variable costs were 60% of sales, and sales were
$1,050,000. Income from operations was
a.$630,000
b.$215,000
c.$420,000
d.$172,000 Ans✓✓✓b.$215,000
,A manufacturing business reports three types of inventory on its balance
sheet: Ans✓✓✓materials inventory, work in process inventory, finished
goods inventory
A plant manager's salary is a(n)
a.direct cost
b.period cost
c.indirect cost
d.direct cost and an indirect cost Ans✓✓✓c.indirect cost
All factory overhead costs are Ans✓✓✓indirect costs of the product
Another term for factory overhead is
a.supervisory cost
b.surplus
c.factory burden
d.period cost Ans✓✓✓c.factory burden
As production increases, the fixed cost per unit
a.remains the same
b.either increases or decreases, depending on the variable costs
c.increases
d.decreases Ans✓✓✓d.decreases
, Bryce Co. sales are $810,000, variable costs are $461,300, and income
from operations is $247,000. What is the contribution margin ratio?
a.57.0%
b.62.2%
c.43.0%
d.38.7% Ans✓✓✓c.43.0%
Compute conversion costs given the following data: direct materials,
$347,500; direct labor, $196,300; factory overhead, $187,900; and
selling expenses, $45,290.
a.$731,700
b.$543,800
c.$187,900
d.$384,200 Ans✓✓✓d.$384,200
Contribution margin is
a.another term for volume in the "cost-volume-profit" analysis
b.the excess of sales over variable costs
c.profit
d.the same as sales revenue Ans✓✓✓b.the excess of sales over variable
costs
Conversion costs Ans✓✓✓Direct Labor + Manufacturing Overhead
