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# Could you help me another one Neo? (or tomorrow?)

This would be the last one!

Thanks.

No problem but you have not accepted the last set yet.

Customer: replied 5 years ago.

Oops, sorry. I just did.

No problem. :)

Customer: replied 5 years ago.

So, could you help me right now? or tomorrow morning again..?

Customer: replied 5 years ago.

Oh, never mind. What time are you available tomorrow?

I will be available tomorrow at 8AM.

Customer: replied 5 years ago.
Good morning Neo!
Good morning! :)

Customer: replied 5 years ago.
 1. Which of the following is correct concerning reactions to INCREASES in activity? a. Total Variable Costb. Variable Cost Per Unit(Points : 2) a. Increases, b. Decreases a. Constant, b. Decreases a. Decreases, b. Constant a. Increases, b. Constant

 2. A mattress manufacturer has provided the following cost data. The cost of fabric, foam, springs, and lumber is \$68,000. The cost of indirect materials is \$21,000. Labor cost of assembly workers is \$52,000 and for production supervisors is \$14,000. How much indirect cost is included in the above costs? (Points : 2) \$21,000 \$35,000 \$89,000 \$103,000

 3. How much sunk cost is represented in the following list? Annual operating cost \$80,000Fixed operating costs other than depreciation \$14,000Resale value, if sold now \$25,000Original cost of current machine \$68,000(Points : 2) \$80,000 \$14,000 \$25,000 \$68,000

 4. Rotonga Manufacturing Company leases a vehicle that it uses to deliver its finished products to customers. Which of the following terms could be used to correctly describe the monthly lease payments made on the delivery vehicle? a. Direct Costb. Fixed Cost(Points : 2) a. Yes, b. Yes a. Yes, b. No a. No, b. Yes a. No, b. No

 5. A manufacturing plant produces two product lines: football equipment and hockey equipment. An indirect cost for the hockey equipment line is the: (Points : 2) material used to make the hockey sticks labor to bind the shaft to the blade of the hockey stick shift supervisor for the hockey line plant supervisor

 6. At a sales volume of 20,000 units, Choice Corporation's sales commmissions (a cost that is variable with respect to sales volume) total \$132,000. To the nearest whole cent, what should be the average sales commission per unit at a sales volume of 18,500 units? (Assume that this sales volume is within the relevant range.)(Points : 2) \$6.60 \$6.87 \$7.17 \$7.14

 7. The potential benefit that is given up when one alternative is selected over another is called: (Points : 2) A sunk cost. An opportunity cost. Both a sunk cost and an opportunity cost. Neither a sunk cost nor an opportunity cost.

 8. An example of a fixed cost that would be considered a direct cost is: (Points : 2) a cost accountant's salary when the cost object is a unit of product. the rental cost of a warehouse to store a finished goods when the cost object is the Purchasing Department. a production supervisor's salary when the cost objective is the Production department. Board of Director's fees when the cost object is the Marketing Department.

 9. An example of a cost object is: (Points : 2) a product a customer a department All of these are correct.

 10. When the level of activity decreases within the relevant range, the fixed cost per unit will: (Points : 2) decrease. increase. remain the same. The effect cannot be predicted.

 11. Haala Inc. is a merchandising company. Last month the company's cost of goods sold was \$68,000. The company's beginning merchandise inventory was \$11,000 and its ending merchandise inventory was \$17,000. What was the total amount of the company's merchandise purchases for the month? (Points : 2) \$96,000 \$62,000 \$68,000 \$74,000

 12. A sunk cost is: (Points : 2) a cost that is planned to be incurred in the near future. irrelevant for decision making. a cost connected with drilling for oil affected by changes in the level of activity.

 13. Mark is an engineer who has designed a telecommunications device. He is convinced that there is a big potential market for the device. Accordingly, he has decided to quit his present job and start a company to manufacture and market the device. Mark purchased a machine two years ago to make experimental boards. The machine will be used to manufacture the new board. The cost of this machine is:(Points : 2) an opportunity cost a sunk cost a differential cost a period cost

 14. Cost distortion is common in conventional costing systems because: (Points : 2) of the recent change in cost structure the number of products being manufactured is increasing fixed costs are allocated using a volume measure fixed costs create higher risks for a company

 15. At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total \$733,400. To the nearest whole dollar, what should be the total property taxes at a sales volume of 37,200 units? (Assume that this sales volume is within the relevant range.)(Points : 2) \$725,680 \$733,400 \$749,172 \$717,960

 16. Indirect manufacturing costs: (Points : 2) can be traced to the product that created the costs may have a cause-and-effect relationship with capacity rather than with individual units of production generally include the cost of material and the cost of labor are included in period costs

 17. A manufacturing plant produces two product lines: football equipment and hockey equipment. Direct costs for the football equipment line are the: (Points : 2) beverages provided daily in the plant break room monthly lease payments for a specialized piece of equipment needed to manufacture the football helmet salaries of the clerical staff that work in the company administrative offices utilities paid for the manufacturing plant

 18. At a sales volume of 38,000 units, Tirri Corporation's property taxes (a cost that is fixed with respect to sales volume) total \$733,400. To the nearest whole center, what should be the average property tax per unit at a sales volume of 37,300 units? (Assume that this sales volume is within the relevant range.)(Points : 2) \$19.30 \$19.66 \$19.72 \$19.48

 19. A recent college graduate has the choice of buying a new auto for \$20,000 or to invest the money for four years with a 12% expected rate of return. If the graduate decides to purchase the auto, the BEST estimate of the opportunity cost of that decision is: (Points : 2) \$2,400 \$11,470 \$20,000 There is no opportunity cost for this decision.

 20. The fixed portion of the cost of electricity for a manufacturing plant is: a. Period costb. Product cost(Points : 2) a. Yes, b. No a. Yes, b. Yes a. No, b. Yes a. No, b. No