A100_recent_exam_solutions

A100_recent_exam_solutions - Some questions from recent...

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Some questions from recent A100 exams. .. SOLUTIONS 1. Manufactured goods that are complete are classified as a. raw materials inventory b. work in process c. finished goods inventory d. cost of goods sold e. manufacturing overhead 2. The salaries of the manufacturing supervisors would be an example of a. selling and administrative costs b. labor materiality c. direct labor d. indirect labor 3. The salary of the vice-president of finance would be classified as a. labor materiality b. direct labor c. manufacturing overhead d. selling and administrative costs 4. Inventory consisting of partially completed units at the end of the year is called a. raw materials inventory b. finished goods inventory c. work-in-process inventory d. indirect materials inventory 5. Variable costs, a. in total, remain constant within a relevant range b. on a per unit basis, are constant as activity increases or decreases c. on a per unit basis, decrease as activity decreases d. in total, decrease when activity increases 6. In January, 5,000 units were manufactured at a unit cost of $5. At this level of activity, variable costs are 40 percent of total unit costs. The following month, the company planned to manufacture 4,500 units. If cost behavior patterns remain unchanged in February, a. total fixed costs will decrease b. total variable cost will remain unchanged c. total cost per unit will increase d. variable cost per unit will decrease e. none of the above 7. In the formula, Total cost = a + (b × units produced), variable cost per unit refers to the a. slope parameter or b b. intercept parameter or a c. dependent variable d. independent variable
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8. The Cosmo Company developed the following cost function for manufacturing overhead costs: Manufacturing overhead = $18,000 + ($7 × units produced). Estimated manufacturing overhead costs at 25,000 units of production would be a. $218,000 b. $193,000 c. $175,000 d. $18,000 e. none of the above 9. At break-even, contribution margin equals a. total variable costs b. total fixed costs c. total manufacturing costs d. fixed manufacturing costs 10. On a cost-volume-profit graph, the break-even point is where a. the revenue line intersects the profit line b. the revenue line intersects the total cost line c. the fixed cost line intersects the variable cost line d. the contribution margin line intersects the fixed cost line 11. If the selling price per unit increases, the break-even point in units will a. increase b. decrease c. remain the same d. remain the same; however, contribution margin per unit will
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A100_recent_exam_solutions - Some questions from recent...

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