chap002p3 - Chapter 002 Managerial Accounting and Cost...

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Chapter 002, Managerial Accounting and Cost Concepts 2-11 34. Within the relevant range, the difference between variable costs and fixed costs is: A. variable costs per unit fluctuate and fixed costs per unit remain constant. B. variable costs per unit are constant and fixed costs per unit fluctuate. C. both total variable costs and total fixed costs are constant. D. both total variable costs and total fixed costs fluctuate. 35. Each of the following would be classified as variable in terms of cost behavior except: A. cost of shipping goods to customers via express mail. B. sales commissions. C. plant manager's salary. D. direct materials. 36. A lawnmower manufacturer computed a cost per unit of $53 by adding together last month's direct labor, direct materials, and manufacturing overhead and dividing that total by the 10,000 units produced last month. (There were no beginning or ending inventories.) If 9,000 units are going to be manufactured this month, we would expect that the: A. cost per unit will remain the same. B. cost per unit will decrease. C. direction of change in unit costs cannot be determined. D. cost per unit will increase. 37. Which one of the following costs should NOT be considered an indirect cost of serving a particular customer at a Dairy Queen fast food outlet? A. the cost of the hamburger patty in the burger they ordered.
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This note was uploaded on 10/31/2011 for the course ECON 102 taught by Professor Monkey during the Spring '11 term at Cornerstone.

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chap002p3 - Chapter 002 Managerial Accounting and Cost...

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