ACG 63151For which of the following
ACG 6315
1.For which of the following products would job order costing be least likely to be used?
Textbook printing
Newsprint paper Manufacturing
Mortgage loan processing
Residential building
2.Which of the following costs are treated as part of the cost of product?
Wages of plant security guards
Insurance on the plant building and equipment
All of the above are product costs
Depreciation on the kitchen sink in the plant cafeteria
3. If a cost is identical under each alternative under consideration within a given decision context, the cost is considered:
An outlay cost
A sunk cost
An opportunity cost
An irrelevant cost
4. Which of the following is an example of an activity cost driver?
None of the above
Determining the best location for a manufacturing facility
Designing components of a product so they can fit together only in the correct manner
Deciding how to arrange raw materials inventory within a warehouse
Receiving raw materials into the warehouse
5. Wesley’s income statement is as follows:
Sales (10,000 units)
$150,000
Less variable costs
- 48,000
Contribution margin
$102,000
Less fixed costs
- 24,000
Net income
$ 78,000
What is the unit contribution margin?
$10.20
$ 7.20
$ 4.80
$12.00
6. Sparrow Company sells three different products that are similar, but are differentiated by various product features. Budgeted sales by product and in total for the coming year are shown below: Product Standard
Deluxe
Premium
Total
Percentage of total sales
48%
20%
32%
100%
Sales
$240,000
$100,000
$160,000
$500,000
Less: variable costs 72,000 80,000 88,000 240,000
Contribution margin
$168,000
$ 20,000
$ 72,000
$260,000
Less: fixed expenses
$233,600
Net operating income
$ 26,400
If customers are indifferent to which of the products to purchase from Sparrow Company, which product line should sales personnel recommend to customers that would most improve overall operating
1.For which of the following products would job order costing be least likely to be used?
Textbook printing
Newsprint paper Manufacturing
Mortgage loan processing
Residential building
2.Which of the following costs are treated as part of the cost of product?
Wages of plant security guards
Insurance on the plant building and equipment
All of the above are product costs
Depreciation on the kitchen sink in the plant cafeteria
3. If a cost is identical under each alternative under consideration within a given decision context, the cost is considered:
An outlay cost
A sunk cost
An opportunity cost
An irrelevant cost
4. Which of the following is an example of an activity cost driver?
None of the above
Determining the best location for a manufacturing facility
Designing components of a product so they can fit together only in the correct manner
Deciding how to arrange raw materials inventory within a warehouse
Receiving raw materials into the warehouse
5. Wesley’s income statement is as follows:
Sales (10,000 units)
$150,000
Less variable costs
- 48,000
Contribution margin
$102,000
Less fixed costs
- 24,000
Net income
$ 78,000
What is the unit contribution margin?
$10.20
$ 7.20
$ 4.80
$12.00
6. Sparrow Company sells three different products that are similar, but are differentiated by various product features. Budgeted sales by product and in total for the coming year are shown below: Product Standard
Deluxe
Premium
Total
Percentage of total sales
48%
20%
32%
100%
Sales
$240,000
$100,000
$160,000
$500,000
Less: variable costs 72,000 80,000 88,000 240,000
Contribution margin
$168,000
$ 20,000
$ 72,000
$260,000
Less: fixed expenses
$233,600
Net operating income
$ 26,400
If customers are indifferent to which of the products to purchase from Sparrow Company, which product line should sales personnel recommend to customers that would most improve overall operating