Chapter 15 - Multiple Choice Questions
1. A variable cost is a cost that a. varies per unit at every level of activity b. occurs at various times during the year c. varies in total in proportion to changes in the level of activity d. may not be incurred, depending on management 's discretion
C is correct.
Section “Cost behaviour analysis” – A variable cost varies in total in proportion to changes in the level of activity.
2. A cost which remains constant per unit at various levels of activity is a a. variable cost b. fixed cost c. mixed cost d. manufacturing cost
A is correct.
Section “Cost
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are common b. are the exception rather than the rule c. have no fixed costs d. have no variable costs
B is correct.
Section “Cost behaviour analysis” – Firms operating constantly at 100% are the exception rather than the rule.
16. Which one of the following is a name for the range over which a company expects to operate? a. Mixed range b. Fixed range c. Variable range d. Relevant range
D is correct.
Section “Cost behaviour analysis” – The range over which a company expects to operate is called the relevant range.
17 The graph of variable costs that behave in a curvilinear fashion will a. approximate a straight line within the relevant range b. be sharply kinked on both sides of the relevant range c. be downward sloping d. be a stair-step pattern
A is correct.
Section “Cost behaviour analysis” – The graph of variable costs that behave in a curvilinear fashion will approximate a straight line within the relevant range.
18. A mixed cost contains a. a variable cost element and a fixed cost element b. both selling and administrative costs c. both retailing and manufacturing costs d. both operating and non-operating costs
A is correct.
Section “Cost behaviour analysis” – A mixed cost contains a variable cost element and a fixed
Classification: Posting of sales transaction to proper account: tested when accuracy tested; focus on unusual items
| One guideline for working with forms is to display ____ fields in a distinctive way, and prevent users from changing and updating them. c.
I have selected Apple as the company that I will be following financially for the duration of Accounting 561. Not only am I a passionate Apple user, I also believe in how the company develops, creates, and markets their product lines for consumer use. They have created products that are so complex at their core with an extremely simple user experience, which has been nothing short of remarkable to watch from the time I was a child through adulthood. I look forward to studying the company and their financials further as we dive deeper into Accounting 561.
3. If a cost is identical under each alternative under consideration within a given decision context, the cost is considered:
Discuss filing requirement? - Filing requirements are specified by law for each type of taxpayer. In addition, all corporation must file a tax return annually regardless of their taxable income. Therefore, estates and trusts are required to file annual income tax returns if their gross income exceeds $600. In the filing requirements for individual taxpayers are a little more complex as they depend on the taxpayer’s filing status, age and gross income. The gross income thresholds are calculated as the sum of the standard deduction, additional deduction for taxpayers age 65 or older and personal exemptions that should be applied to each respective filing status. In addition, the amounts are indexed each year for inflation. Thus, when a taxpayer is due a refund which happened to occur only when
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1) Complete summary of the case study that identifies the key problems and issues, provides background information, relevant facts, the solution employed, and the results achieved.
Access the "Litigation" section of the SEC's website at www.sec.gov/litigation.shtml. Click on "Accounting and Auditing Enforcement Releases." Click on "AAER-3234" filed January 20, 2011. Read the release and the related SEC Complaint. Summarize the release and complaint in 2-3 pages (12-point, double spaced).
from the present owner’s perspective sets the upper end of the range of possible transaction prices.
The case study also seems to take an assumption that every event is under the same scale hence the variable cost per event for similar expense category (such as table arrangement, floral, soft drinks and snacks costs, temporary staff wage, etc.) are having the same amount.
unit, two types of costs are distinguished. Firstly the direct costs, consisting of the direct
We will examine the given data from the case and compare the unit costs from the company’s current costing system (traditional costing) and from activity-based costing. We will also highlight other qualitative data in consideration with the numerical factors that may result to a significant change on our recommendation.
Which terms would make the following sentence true? Manufacturing companies that benefit the most from activity-based costing are those where overhead costs are a _________ percentage of total product cost and where there is ___________ diversity among the various products that they produce.
considers any price between full production cost and 150% of full production cost to be within its
Separate mixed costs into their fixed and variable components using the high-low method, the scatterplot method, and the method of least squares.