bus 215 assignments || Questions with 100% correct answers.
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Grado
Bus 215
Institución
Bus 215
Cost behavior refers to:
Select one:
A. Whether a particular expense has been ethically incurred.
B. Whether a cost is incurred in a manufacturing, merchandising, or service company.
C. How costs react to a change in the level of activity. Correct
D. Classifying costs as either inventoriable...
bus 215 assignments || Questions with 100% correct
answers.
Cost behavior refers to:
Select one:
A. Whether a particular expense has been ethically incurred.
B. Whether a cost is incurred in a manufacturing, merchandising, or service company.
C. How costs react to a change in the level of activity. Correct
D. Classifying costs as either inventoriable or period costs. correct answers D.
Which of the following is an example of a cost that is variable with respect to the number of
units produced?
Select one:
A. Salaries of top marketing executives.
B. Rent on the factory building.
C. Rent on the administrative office building.
D. Direct labor cost, where the direct labor workforce is adjusted to the actual production of
the period. correct answers D.
If the level of activity increases within the relevant range:
Select one:
A. variable cost per unit and total cost also increase.
B. total cost will increase and fixed cost per unit will decrease.
C. fixed cost per unit and total variable cost also increase.
D. variable cost per unit and total fixed costs also increase. correct answers B
A mixed cost is:
Select one:
A. Never an inventoriable cost.
B. Always a direct cost.
C. A cost with fixed and variable elements.
D. Always an indirect cost. correct answers c
Which of the following is most often (or most likely to be) a mixed cost?
Select one:
A. Monthly electric bill.
B. Manager's salary.
C. Direct materials.
D. Monthly rent payment. correct answers a
At a volume of 8,000 units, Pwerson Company incurred $32,000 in factory overhead costs,
including $12,000 in fixed costs. If volume increases to 9,000 units and both 8,000 units and
9,000 units are within the same relevant range of activity, then the company would expect to
incur total factory overhead costs of:
, Select one:
A. $32,000
B. $22,500
C. $20,000
D. $34,500 correct answers d
Farmington Corporation has provided the following production and total cost data for two
levels of monthly production volume. The company produces a single product.
Production volume.................
6,000 units
7,000 units
Direct materials......................
$195,000
$227,500
Direct labor............................
$113,400
$132,300
Manufacturing overhead.........
$913,200
$931,700
The best estimate of the TOTAL cost to manufacture 6,300 units is closest to:
Select one:
A. $1,242,570
B. $1,162,350
C. $1,282,680
D. $1,222,515 correct answers a
Maintenance costs at a Whetsel Corporation factory are listed below:
Machine-Hours
Maintenance Cost
March..............
3,135
$48,340
April................
3,095
$47,993
May................
3,133
$48,645
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