6. Under variable costing, fixed manufacturing overhead costs would be classified as:a. Product costs.b. Period costs.c. Selling costs.d. Inventory costs.7. A 10% internal rate of return (IRR) on a proposed capital investment indicates all of the following except:a. The economic rate of return on the project is expected to be 10%.b. Use of a 10% discount rate would result in an estimated project NPV of zero.c. A positive net present value (NPV) if the company required rate of return is less than 10%.d. The project would be "accepted" if the company required rate of return is greater than 10%.8. Any system of compensation:a. May encourage unethical behavior.b. Should be designed by top management.c. Must be approved by the auditor.d. Must include bonuses.9. A firm with a declining market share percentage may still earn a higher operating income if the:a. Market as a whole is declining.b. Market as a whole is stable.c. Market as a whole is shifting.d. Market as a whole is growing.10. The manager acting independently in such a way as to simultaneously achieve top management'sobjectives is exhibiting:a. Performance evaluation.b. Operational control.c. Goal congruence.d. Management control.

Name: 6. Under variable costing, fixed manufacturing overhead costs would b
Uploaded: 2024-03-20T06:32:49.000Z
Channel: Bartleby
Description: 6. Under variable costing, fixed manufacturing overhead costs would be classified as:a. Product costs.b. Period costs.c. Selling costs.d. Inventory costs.7. A 10% internal rate of return (IRR) on a proposed capital investment indicates all of the fo

The question is based on the concept of Cost Accounting. As per the Bartleby guidelines we are…

Answered: 6. Under variable costing, fixed…

Business

Accounting

6. Under variable costing, fixed manufacturing overhead costs would be classified as: a. Product costs. b. Period costs. c. Selling costs. d. Inventory costs.

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter7: Variable Costing For Management analysis

Section: Chapter Questions

Problem 4BE

See similar textbooks

Similar questions

In linear breakeven analysis, if process A has a variable cost of $45 per unit and process B has a variable cost of $31 per unit, which alternative would be preferred if the breakeven point is 7400 units and production is expected to be 6200 units? (a) Process A (b) Process B (c) Process B if its fixed cost is lower than the fixed cost of Process A (d) Cannot tell; need more information
sing the following data, estimate the new Return on Investment if there is a 6% increase in sales - with average operating assets as the base. Sales $2,640,795 Contribution margin 38% Controllable fixed costs 248,297 Average operating assets $4,486,486 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign. Using the following data, estimate the new Return on Investment if there is a 9% decrease in variable and fixed costs- with average operating assets as the base. Sales $3,023,201 Contribution margin 37% Controllable fixed costs 244,010 Average operating assets $5,136,160 Round to two decimal places. Be sure to enter the answer as a percentage but do not include the % sign.
a) Identify an example of i) a sunk cost, ii) an opportunity cost, and iii) a semi-variable cost in the above. b) Calculate Simon's i) break-even point ii) margin of safety (as a percentage) given anticipated annual sales of 4,800 units and c) his anticipated annual profit on sales of 4,800 units per annum
When studying a project, the following variable costs were estimated for a normal production capacityof 140,000 units, with a maximum capacity of 200,000 units: Materials $120,000Labor $300,000Other $80,000Fixed costs are estimated, according to the level of production, in: Production Fixed Cost 0 – 40,000 $320,000 40,001 – 130,000 $380,000 130,001 – 180,000 $420,000 180,001 – 200,000 $500,000 If the selling price of each unit is $15 and the expected production is 100,000 units per year, what isthe minimum number of additional units that need to be sold at the price of $11 per unit to show aprofit of $762,000 per year? To raise sales to 120,000 units per year, how much could be spentadditionally in advertising (fixed cost) so that by maintaining a price of $15, a profit of20% on sales?
The management of Brinkley Corporation is interested in using simulation to estimate the profit per unit for a new product. The selling price for the product will be $45 per unit. Probability distributions for the purchase cost, the labor cost, and the transportation cost are estimated as follows: ProcurementCost ($) Probability LaborCost ($) Probability TransportationCost ($) Probability 10 0.2 18 0.25 2 0.74 12 0.35 20 0.35 5 0.26 13 0.45 22 0.1 25 0.3 Compute profit per unit for the base-case, worst-case, and best-case scenarios.Profit per unit for the base-case: $ fill in the blank 1Profit per unit for the worst-case: $ fill in the blank 2Profit per unit for the best-case: $ fill in the blank 3 Construct a simulation model to estimate the mean profit per unit. If required, round your answer to the nearest cent.Mean profit per unit = $ fill in the blank 4 Why is the simulation approach to risk analysis preferable to generating a variety of…
A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. (A) Which alternative has the lowest break-even quantity? (B) Which alternative will produce the highest profits for an annual output of 10,000 units? (C) Which alternative would require the lowest volume of output to generate an annual profit of $50,000?
At a production level of 6,500 units, a project has total costs of $95,000. The variable cost per unit is $10.80. a) What is the amount of the total fixed costs? b) If the production level is increased to 7,000 units, without any change in the total fixed assets, what is the Total Costs?
A firm is considering three capacity alternatives: A, B, and C. Alternative A would have an annual fixed cost of $100,000 and variable costs of $22 per unit. Alternative B would have annual fixed costs of $120,000 and variable costs of $20 per unit. Alternative C would have fixed costs of $80,000 and variable costs of $30 per unit. Revenue is expected to be $50 per unit. Which alternative has the lowest break-even quantity?
Please reject this A firm manufactures a product that sells for $16 per unit. Variable cost per unit is $8 and fixed cost per period is $1760 Capacity per period is 1400 units (a) Develop an algebraic statement for the revenue function and the cost function (b) Determine the number of units required to be sold to break even. (c) Compute the break-even point as a percent of capacity (d) Compute the break-even point in sales dollars (a) The revenue function is TR= (Type an expression using x as the variable Do not inciude the $ symbol in your answer) The cost function is TC (Type an expression using x as the variable Do not includo the $ symbol in your answer) (b) The number of units required to be sold to break even is units (Round up to the nearest whole number) (c) The break-even point as a porcent of capacity is% (Round to two decimal places as needed.) (d) The break-even point in sales dollars is $ (Round to the nearest cent as needed.)
A Corp has the following data:• Prime cost of 800,000• Variable Mfg OH of 100,000• Fixed Mfg OH of 160,000• Variable OPEX of 80,000• Fixed OPEX of 40,000. What is the inventoriable cost under variable costing?
A Corp has the following data: Prime cost of 800,000 Variable Mfg OH of 100,000 Fixed Mfg OH of 160,000 Variable OPEX of 80,000 Fixed OPEX of 40,000 What is the inventoriable cost under variable costing? What is the inventoriable cost under absorption costing?
Assume that a manufacturer can purchase a needed component from a supplier at a cost of $9.50 per unit, or it can invest $60,000 in equipment and produce the item at a cost of $7.00 per unit. (a) Determine the quantity for which total costs are equal for the make and buy alternatives. (b) What is the minimum cost alternative if 15,000 units are required? What is the minimum cost? (c) If the number of units required of the component is close to trhe break even quantity, what factors might might influence the final decision to make or buy