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