1. (TCO A) The variable portion of advertising costs is a: (Points : 6)
Conversion NO.... Period YES
2. (TCO A) Fixed costs expressed on a per unit basis: (Points : 6)
will decrease with increases in activity.
3. (TCO A) Depreciation of office buildings and equipment are also known as: (Points : 6)
4. (TCO A) When the activity level is expected to increase within the relevant range, what effects would be anticipated with respect to each of the following?
Fixed Cost Per Unit Variable Cost Per Unit
(Points : 6)
decrease No Change
5. (TCO F) Emco Company uses direct labor cost as a basis for computing its predetermined overhead rate. In computing the predetermined overhead rate for last year, the company included in direct labor cost a portion of indirect labor. The effect of this misclassification will be to: (Points : 6)
understate the predetermined overhead rate
6. (TCO F) Under a job-order costing system, the product being manufactured: (Points : 6)
can be custom manufactured..
7. (TCO F) Equivalent units for a process costing system using the FIFO method would be equal to: (Points : 6)
units started and completed during the period, plus equivalent units in the ending work in process inventory, plus work needed to complete units in the beginning work in process inventory
8. (TCO B) The contribution margin ratio always decreases when the: (Points : 6)
variable expenses as a percentage of net sales increase
9. (TCO B) The unit sales needed to attain the target profit is found by: (Points : 6)
adding target profit to the fixed expenses and then dividing the total by the unit contribution margin..
10. (TCO E) Under variable costing: (Points : 6)
inventory costs will be lower than under absorption costing
3. (TCO B) A cement manufacturer has supplied the following data:
Tons of cement produced and sold 220,000