Question : 60.Which of the following not considered a product cost? A. Direct materials. B. Research : 1258603

 

60.Which of the following is not considered a product cost?   

A. Direct materials.

B. Research and development costs.

C. Direct labor.

D. Inventoriable costs.

E. Indirect manufacturing costs.

61.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.

62.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.

63.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.

64.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.

65.Which of the following would be a line item for a variable costing income statement?   

A. Gross margin

B. Cost of goods available for sale

C. Total cost of goods sold

D. Contribution margin

E. Work-in-process inventory

66.Which of the following statements is true?   

A. A per unit cost that is constant at all production levels is a fixed cost per unit.

B. As more units are produced, the fixed costs per unit declines.

C. Fixed inventory costs are treated the same under both absorption costing and variable costing.

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.

67.Under absorption costing, which of the following statements is not 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.

68.When sales are more than production, operating income will be lower under absorption costing than under variable costing. If we assume no ending inventory balances, which of the following gives the best justification of the above statement?    

A. All costs incurred have been accounted for as expenses

B. Fixed manufacturing costs have not been used in calculating operating profits

C. Some of the fixed manufacturing overhead is still in the ending Finished Goods Inventory

D. Units in beginning Finished Goods Inventory have manufacturing fixed costs allocated to them

69.Mentor Corp. has provided the following information for the current year: 

Units produced3,500 units

Sale price$200 per unit

Direct materials$70 per unit

Direct labor$55 per unit

Variable manufacturing overhead$20 per unit

Fixed manufacturing overhead$350,000 per year

Variable selling and administrative costs$30 per unit

Fixed selling and administrative costs$150,000 per year

Calculate the unit product cost using absorption costing.  A. $245

B. $275

C. $55

D. $145

 

 

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
The price is based on these factors:
Academic level
Number of pages
Urgency
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more