Quiz 2 Cost Classifications

Quiz 2

Cost Classifications

ACCT  1162    5483

INTRO TO MANAGERIAL ACCOUNTING

Preguntas:

1) Giving the following data for XY Company

Year                                                                2008                2009

Total Sales                                                     $145,000         $121,4000

Cost of goods sold                                       $880,000         $738,400

Selling & Administrative Expenses            $92,500           $80,700

Assume high-low method is adequate in this case, the total fixed costs of cost of goods sold is

La  pregunta es total fixed costs of cost of goods sold, entonces buscas la diferencia entre CGS ($880,000 - $738,400=$141,600) esto lo divides entre la diferencia de las ventas ($1,450,000 - $1,214,000 = $236,000)   por lo tanto $141,600/$236,000= .60 o 60% que son los costos variables, entonces por diferencia determinar los fijos.

Costo variable                                    $1,450,000 x 60%= $870,000

 menos el total de costo a ese nivel                                    -880,000     

Costo fijo                                                                                 10,000

Correct Answer: 10,000

2) The following data pertains to Kandy Company

Monthly fixed cost (FC)                                  $200,000

Selling price per unit (SP/u)                           $12

Variable cost per unit (VC/u)                          $4

Income tax rate (t)                                          20%

Find contribution margin percentage

Correct answer: 66.67

3) Giving the following data for XY Company

Year                                                                2008                2009

Total Sales                                                     $145,000         $121,4000

Cost of goods sold                                       $880,000         $738,400

Selling & Administrative Expenses            $92,500           $80,700

Assume high-low method is adequate in this case, the total variable costs of selling and administrative expenses per unit is 

Correct answer: 5

Preguntas diferentes:

1) The following data pertains to Kandy Company

Monthly fixed cost (FC)                                  $200,000

Selling price per unit (SP/u)                           $12

Variable cost per unit (VC/u)                          $8

Income tax rate (t)                                          20%

Find contribution margin per unit 

Correct answer: $4

2) Giving the following data for XY Company

Year                                                                2008                2009

Total Sales                                                     $145,000         $121,4000

Cost of goods sold                                       $880,000         $738,400

Selling & Administrative Expenses            $92,500           $80,700

Assume high-low method is adequate in this case, the variable costs of cost goods sold per unit is

Correct answer: 60%

3) Total costs less overhead costs equals to material costs.

Correct answer: False

4) Common financial statements present all the financial statements items as percentages of a specific item.

Correct answer: True

1) Selling price per unit is $10 and variable cost per unit $6, contribution margin percentage is

Procedimiento: 10 - 6 = 4 / 100 = 40%

Correct answer: 40%

2) Assume all other factors remain constant, when the quantities of sales increase, the fixed cost per unit for the period (one year) decrease.

Correct answer: True

2) Assume all other factors remain constant, when the quantities of sales increase, the total variable cost for the period (one year) decrease.

Correct answer: False

3) Common financial statements present all the financial statements items as percentages of any item.

Correct answer: False 

4) Overhead is part of conversion costs and prime costs.

Correct answer: False

5) For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of $20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, fixed cost per unit, in dollars

Correct answer: Remain constants 

6) For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, fixed cost per unit as a percentage of unit sales

Correct answer: Decreased

7) For a manufacturing company has total monthly fixed costs of $100,000, variable costs per units $10, income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase, fixed costs per unit

Correct answer: Decreased

8) Total costs less conversion costs equals to material costs:

Correct answer: True

9) Contribution margin is the same as gross margin for generally accepted accounting principles (GAAP)

Correct answer: This is not correct 

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