Question :
51. Which of the following not a product cost?A. Direct : 1256624
51. Which of the following is not a product cost?A. Direct labor.B. Indirect manufacturing costs.C. Direct materials.D. Manufacturing overhead.E. Advertising costs.
52. Using a traditional costing approach, which of the following manufacturing costs are assigned to products?A. Direct materials and direct labor.B. Direct labor and variable manufacturing overhead.C. Fixed manufacturing overhead, direct materials, and direct labor.D. Variable manufacturing overhead, direct materials, and direct labor.E. Variable manufacturing overhead, direct materials, direct labor, and fixed manufacturing overhead.
53. Which of the following statements is true regarding absorption costing?A. It is a not the traditional costing approach.B. It is not permitted to be used for financial reporting.C. It is not permitted to be used for tax reporting.D. It assigns all manufacturing costs to products.E. It requires only variable costs to be treated as product costs.
54. Which of the following statements is true regarding variable costing?A. It is a traditional costing approach.B. Only manufacturing costs that change in total with changes in production level are included in product costs.C. It is not permitted to be used for managerial reporting.D. It treats overhead in the same manner as absorption costing.E. It makes it easier to manipulate earnings with changes in production levels.
55. Which of the following statements is true?A. Variable costing treats fixed overhead as a period cost.B. Absorption costing treats fixed overhead as a period cost.C. Absorption costing treats fixed overhead as an expense in the period it is incurred.D. Variable costing excludes all overhead from product costs.E. Managers can manipulate earnings more easily under variable costing by varying the production level.
56. Which of the following statements is true?A. A per unit cost that is constant at all production levels is a variable cost per unit.B. Reported income under variable costing is affected by production level changes.C. A per unit cost that is constant at all production levels is a fixed cost per unit.D. Reported income under absorption costing is not affected by production level changes.E. A cost that is constant over all levels of production is a variable cost.
57. Under absorption costing, which of the following statements is true?A. Over production and inventory buildup can occur because of how managers are evaluated and rewarded.B. The fixed costs per unit decline as more units are produced.C. Variable inventory costs are treated in the same manner as they are under variable costing.D. Fixed inventory costs are treated in the same manner as they are under variable costing.E. All manufacturing costs are assigned to products.
58. Under absorption costing, a company had the following unit costs when 8,000 units were produced.
Direct labor
$8.50 per unit
Direct material
$9.00 per unit
Variable overhead
$6.75 per unit
Fixed overhead ($60,000/8,000 units)
$7.50 per unit
Total production cost
$31.75 per unit
Compute the total production cost per unit under absorption costing if 30,000 units had been produced.A. $31.75
B. $27.25C. $26.25D. $24.25E. $17.50
59. Under absorption costing, a company had the following unit costs when 8,000 units were produced.
Direct labor
$8.50 per unit
Direct material
$9.00 per unit
Variable overhead
$6.75 per unit
Fixed overhead ($60,000/8,000 units)
$7.50 per unit
Total production cost
$31.75 per unit
Compute the total production cost per unit under variable costing if 20,000 units had been produced.A. $31.75
B. $27.25C. $26.25D. $24.25E. $17.50
60. Under absorption costing, a company had the following unit costs when 8,000 units were produced.
Direct labor
$8.50 per unit
Direct material
$9.00 per unit
Variable overhead
$6.75 per unit
Fixed overhead ($60,000/8,000 units)
$7.50 per unit
Total production cost
$31.75 per unit
Compute the total production cost per unit under variable costing if 25,000 units had been produced.A. $31.75
B. $27.25C. $26.25D. $24.25E. $17.50
