Inventory Costing And Capacity Analysis
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- The Manager and Management AccountingAn Introduction to Cost Terms and PurposesCost-Volume-Profit AnalysisJob CostingActivity-Based Costing and Activity-Based ManagementMaster Budget and Responsibility AccountingFlexible Budgets, Direct-Cost Variances, and Management ControlFlexible Budgets, Overhead Cost Variances, and Management ControlInventory Costing and Capacity AnalysisDetermining How Costs BehaveDecision Making and Relevant InformationStrategy, Balanced Scorecard, and Strategic Profitability AnalysisPricing Decisions and Cost ManagementCost Allocation, Customer-Profitability Analysis, and Sales-Variance AnalysisAllocation of Support-Department Costs, Common Costs, and RevenuesCost Allocation: Joint Products and ByproductsProcess CostingSpoilage, Rework, and ScrapBalanced Scorecard: Quality and TimeInventory Management, Just-in-Time, and Simplified Costing MethodsCapital Budgeting and Cost AnalysisManagement Control Systems, Transfer Pricing, and Multinational ConsiderationsPerformance Measurement, Compensation, and Multinational Considerations
Question 1
Free
Multiple Choice
Which of the following costs is inventoried when using variable costing?
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rent on factory building
electricity consumed in manufacturing process
sales commission paid on each sale
advertising costs incurred for the product
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Question 2
Free
Multiple Choice
Which of the following costs is inventoried when using absorption costing?
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variable selling costs
fixed administrative costs
variable manufacturing costs
fixed selling costs
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Question 3
Free
Multiple Choice
Which of the following best describes how fixed cost are treated in a variable cost method?
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They are part of the product cost
They are excluded from inventory cost and are treated as period costs
They are allocated to the product cost using a denominator-level capacity choice
They are classified as nonmanufacturing costs
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Question 4
Free
Multiple Choice
________ is a method of inventory costing in which all variable manufacturing costs and all fixed manufacturing costs are included as inventoriable costs.
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Variable costing
Mixed costing
Absorption costing
Standard costing
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Question 5
Free
Multiple Choice
Which of the following is true of absorption costing?
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It expenses marketing costs as cost of goods sold.
It treats direct manufacturing costs as a period cost.
It includes fixed manufacturing overhead as an inventoriable cost.
It treats indirect manufacturing costs as a period cost.
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Question 6
Multiple Choice
Which of the following is true of variable costing?
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It expenses administrative costs as cost of goods sold.
It treats direct manufacturing costs as a product cost.
It includes fixed manufacturing overhead as an inventoriable cost.
It is required for external reporting to shareholders.
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Question 7
Multiple Choice
In ________ , fixed manufacturing costs are included as inventoriable costs.
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variable costing
absorption costing
throughput costing
activity-based costing
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Question 8
Multiple Choice
________ method includes fixed manufacturing overhead costs as inventoriable costs.
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Variable costing
Absorption costing
Throughput costing
Activity-based costing
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Question 9
Multiple Choice
Which of the following costs will be treated as period costs under absorption costing?
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raw materials used in the production
sales commission paid on sale of product
depreciation on factory equipment
rent for factory building
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Question 10
Multiple Choice
Under absorption costing, fixed manufacturing costs ________ .
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are period costs
are inventoriable costs
are treated as an expense
are sunk costs
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Question 11
Multiple Choice
________ is a method of inventory costing in which only variable manufacturing costs are included as inventoriable costs.
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Fixed costing
Variable costing
Absorption costing
Mixed costing
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Question 12
Multiple Choice
Variable costing regards fixed manufacturing overhead as a(n) ________ .
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administrative cost
inventoriable cost
period cost
product cost
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Question 13
Multiple Choice
AAA Manufacturing Inc, makes a product with the following costs per unit:
Direct materials $180
Direct labor $20
Manufacturing overhead (variable) $30
Manufacturing overhead (fixed) $130
Marketing costs $75
What would be the inventoriable cost per unit under variable costing and what would it be under absorption costing?
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$180 for variable costing and $305 under absorption costing
$230 for variable costing and $305 under absorption costing
$230 for variable costing and $360 under absorption costing
$200 for variable costing and $305 under absorption costing
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Question 14
Multiple Choice
Time Again, LLC produces and sells a mantel clock for $100 per unit. In 2017, 42,125 clocks were produced and 37,958 were sold. Other information for the year includes:
What is the inventoriable cost per unit using variable costing?
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$66.00
$51.50
$48.00
$103.50
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Question 15
Multiple Choice
Time Again LLC produces and sells a mantel clock for $100 per unit. In 2017, 41,000 clocks were produced and 37,000 were sold. Other information for the year includes:
What is the inventoriable cost per unit using absorption costing?
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$49.00
$53.00
$117.00
$106.00
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Question 16
Multiple Choice
Fast Track Auto produces and sells an auto part for $60 per unit. In 2017, 120,000 parts were produced and 75,000 units were sold. Other information for the year includes:
What is the inventoriable cost per unit using variable costing?
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$20
$25
$28
$35
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Question 17
Multiple Choice
Fast Track Auto produces and sells an auto part for $85 per unit. In 2017, 110,000 parts were produced and 90,000 units were sold. Other information for the year includes:
What is the inventoriable cost per unit using absorption costing?
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$30.00
$36.00
$37.18
$40.00
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Question 18
True/False
Variable costing only includes direct manufacturing costs in inventoriable costs.
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True
False
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Question 19
True/False
The unit cost of a product is always higher in variable costing than in absorption costing.
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True
False
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Question 20
True/False
Under variable costing, lease charges paid on the factory building is an inventoriable cost.
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True
False
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