developer

7) Assume there is an increase in advertising expenditures and all other CVP parameters remain constant. This change will: A) reduce operating income B) reduce contribution margin C) increase variable costs D) increase selling price 8) Bassman Company operates on a contribution margin of 30% and currently has fixed costs of $400,000. Next year, sales are projected to be $2,000,000. An advertising campaign is being evaluated that costs an additional $60,000. How much would sales have to increase to justify the additional expenditure? A) $120,000 B) $180,000 C) $200,000 D) $600,000 Answer the following questions using the information below: Martha […]

1) ________ costing is used by a business to price homogeneous products. A) Actual B) Job C) Process D) Traditional 2) Process costing: A) allocates all product costs, including materials and labor B) results in different costs for different units produced C) is commonly used by general contractors who construct custom-built homes D) is used exclusively in manufacturing 3) ________ costing is used by a business to price unique products for different jobs. A) Actual B) Job C) Process D) Traditional 4) Job costing: A) can only be used in manufacturing B) records the flow of costs for each customer […]

21) Companies typically wait for accurate information regarding actual manufacturing overhead costs before pricing a job. 22) The budgeted indirect cost rate is the budgeted indirect costs divided by budgeted quantity of the cost allocation base. 23) Direct costs are traced the same way for actual costing and normal costing. 24) Normal costing assigns indirect costs based on an actual indirect-cost rate. 25) A budgeted indirect-cost rate is computed for each cost pool using budgeted indirect costs and the budgeted quantity of the cost-allocation base. 26) For normal costing, even though the budgeted indirect-cost rate is based on estimates, indirect […]

11) What is the journal entry used to write off the difference between allocated and actual overhead using the proration approach? A) Manufacturing Overhead Allocated              200,000     Work-in-Process Control              10,000     Finished Goods Control              20,000 Manufacturing Overhead Control              230,000 B) Manufacturing Overhead Allocated              225,000 Work-in-Process Control              1,250 Finished Goods Control              2,500 Cost of Goods Sold              21,250 Manufacturing Overhead Control              200,000 C) Manufacturing Overhead Control              225,000 Work-in-Process Control              1,250 Finished Goods Control              2,500 Cost of Goods Sold              21,250 Manufacturing Overhead Allocated              200,000 D) Manufacturing Overhead Allocated              200,000 Work-in-Process Control              1,250 Finished Goods Control              2,500 Cost of Goods Sold              21,250 Manufacturing Overhead […]

15.1   Distinguish among different types of saleable products, scrap and toxic waste.   1) Joint costs are incurred beyond the split off point and are assignable to individual products.   2) A byproduct has a minimal sales value.   3) Scrap frequently has a zero sales value.   4) There are no logical reasons for allocating joint costs.   5) Separable costs are assignable after the splitoff point.   6) Separable costs include manufacturing costs only.   7) The costs of production that yield multiple products simultaneously are known as joint costs.   8) The juncture in a joint production […]