Test #2

Question 1

1.) A company should use process costing, rather than job order costing, if:

Answer 1

B. The product is composed of mass-produced

Question 2

2.) A process costing system:

Answer 2

B. uses a separate Work in Process account for each processing…

Question 3

3.) President clinic has two service departments, Administrative and support and two operating departments, Adult medicine and Pediatrics. The clinic uses the direct method to allocate service department costs to operating of employee hours and support department costs are allocated on the basis of space occupied in Square Feet… the total pediatrics department cost after the allocations of service department costs is closest to:

Answer 3

D. 491, 880

Question 4

4.) Enzor Surgical Hospital uses the direct method to allocate service department costs to operating departments. The hospital has two service departments, information technology and administration and two operating departments……..

Answer 4

B. 503,713

Question 5

5.) Under the direct method of allocating service department costs reciprocal services provided among service departments are ignored.

Answer 5

True

Question 6

6.) Paxton Corp is a retailing organization. Paxton Corp had provided the following data concerning its operations last month:
The operating leverage is:

Answer 6

C. 3

Question 7

7.) Paxton corp. Paxton The contribution margin ratio is:

Answer 7

D. 37.5 (CM/Sales)=CMR

Question 8

8.) The break even sales in dollars is (round to the nearest dollar):

Answer 8

C. 266,667 (Fixed/Contribution Margin Ratio)

Question 9

9.) If the company sells 7,900 units, its total contribution margin should be closest to:

Answer 9

(308,000/7700)=40*7900= D. 316,000

CM/units=..*amount desired

Question 10

10.) The company’s margin of safety in units is closest to:
Figure Break even then subtract that from sales, then that will give you your margin of safety.
(sp-variable cost) Q- FC=

Answer 10

A.194,043

Question 11

11.) The company’s unit contribution margin closest to:

Answer 11

C. 2.35

Question 12

12.) The unit contribution margin is:

Answer 12

A. 8

Question 13

13.) The break even point in sales dollars is:

Answer 13

C. 731,250

Question 14

14.) The fixed expenses of the entire company were 15,630. If the sales miz were to shift toward product k87w with total sales dollars remaining constant, the overall break-even point for the entire company:

Answer 14

C. would increase

Question 15

Moncrief Inc. Produces and sells a single product. What is break even?

Answer 15

C. 2,810

Question 16

The contribution Margin of the West Business segment

Answer 16

B. 456,000 sales-variable expense

Question 17

What is the segment margin of the East business segment is:

sales-VC=CM-traceble FC= Segment margin

Answer 17

A. 140,000

Question 18

A properly constructed segmented income statement in a contribtion format would show that the net operating income of the company as a whole is:

Answer 18

B. 132,000

Question 19

The absorption costing unit product cost is:

fixed manufacturing overhead/ number units produced= … then fixed/ variable

Answer 19

c. 95

Question 20

what is the variable costing unit product cost for the month?

Answer 20

B. 90

Question 21

only those costs that disappear over time if a segment were eliminated should be considered traceable costs of the segment

Answer 21

True

Question 22

Fixed manufacturing overhead is include procuct costs under:

Answer 22

option D

Question 23

Which of the following are considered to be product costs under abosoprtion costing:

Answer 23

C. I and II

Question 24

Under variable costing, costs that are treated as period costs include:

Answer 24

B. All fixed costs