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Vega Enterprises has computed the following unit costs for the year just ended: Vega Enterprises has computed the following unit costs for the year just ended: Under variable costing, each unit of the company's inventory would be carried at: A) $35. B) $55. C) $65. D) $84. E) None of the answers is correct. Under variable costing, each unit of the company's inventory would be carried at:


A) $35.
B) $55.
C) $65.
D) $84.
E) None of the answers is correct.

F) A) and E)
G) A) and D)

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Riverton Corp., which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $260,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The contribution margin that the company would disclose on a variable-costing income statement is:


A) $97,500.
B) $147,000.
C) $166,500.
D) $370,000.
E) None of the answers is correct.

F) C) and D)
G) B) and C)

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Cost-volume-profit analysis and break-even calculations account for fixed manufacturing overhead as a lump sum.

A) True
B) False

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True

Which of the following situations would cause variable-costing income to be higher than absorption-costing income?


A) Units sold equaled 39,000 and units produced equaled 42,000.
B) Units sold and units produced were both 42,000.
C) Units sold equaled 55,000 and units produced equaled 49,000.
D) Sales prices decreased by $7 per unit during the accounting period.
E) Selling expenses increased by 10% during the accounting period.

F) A) and B)
G) A) and C)

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The optimum level of product quality is where:


A) external failure costs are at a minimum.
B) total quality costs are at a minimum.
C) prevention costs are at a minimum.
D) internal failure costs are at a minimum.
E) all of the answers are correct.

F) A) and C)
G) B) and D)

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Fort Smith Technologies incurred the following costs during the past year when planned production and actual production each totaled 20,000 units: Fort Smith Technologies incurred the following costs during the past year when planned production and actual production each totaled 20,000 units: If Fort Smith uses absorption costing, the total inventoriable costs for the year would be: A) $400,000. B) $460,000. C) $560,000. D) $620,000. E) $660,000. If Fort Smith uses absorption costing, the total inventoriable costs for the year would be:


A) $400,000.
B) $460,000.
C) $560,000.
D) $620,000.
E) $660,000.

F) None of the above
G) A) and D)

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What is the difference between a product's quality of design and its quality of conformance?

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A product's quality of design is how wel...

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All of the following are inventoried under variable costing except:


A) direct materials.
B) direct labor.
C) variable manufacturing overhead.
D) fixed manufacturing overhead.
E) variable manufacturing overhead and fixed manufacturing overhead.

F) A) and E)
G) None of the above

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Assuming the number of units sold and produced are the same, which of the following statements is true when comparing net income using absorption and variable costing?


A) Net income will be the same under both methods.
B) Variable costing will yield a higher net income.
C) Variable costing will have higher sales revenue.
D) Absorption costing will yield a higher net income.
E) None of these statements is true.

F) C) and D)
G) A) and B)

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Income reported under absorption and variable costing can be reconciled by focusing on the effects of the five places where the two statements differ.

A) True
B) False

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On a global scale, there are four primary environmental agreements addressing the atmosphere, hazardous substances, the marine environment, nature conservation, and nuclear power issues.

A) True
B) False

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List and define four types of product quality costs.

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Four types of product quality costs are ...

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What are three strategies of environmental cost management? Define each strategy.

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The three strategies are:
1.End-of-pipe ...

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Income reported under absorption costing and variable costing is:


A) always the same.
B) typically different.
C) always higher under absorption costing.
D) always higher under variable costing.
E) always the same or higher under absorption costing.

F) None of the above
G) D) and E)

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B

Jordan Manufacturing has the following cost information for year 20X9: Jordan Manufacturing has the following cost information for year 20X9: During 20X9, Jordan produced 12,500 units, out of which 11,000 were sold for $60 each. What is Jordan's net income assuming the company uses variable costing: A) $421,600. B) $412,000. C) $425,000. D) $513,000. E) None of the answers is correct. During 20X9, Jordan produced 12,500 units, out of which 11,000 were sold for $60 each. What is Jordan's net income assuming the company uses variable costing:


A) $421,600.
B) $412,000.
C) $425,000.
D) $513,000.
E) None of the answers is correct.

F) B) and D)
G) D) and E)

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ProTech began business at the start of the current year.The company planned to produce 40,000 units, and actual production conformed to expectations.Sales totaled 37,000 units at $42 each.Costs incurred were: ProTech began business at the start of the current year.The company planned to produce 40,000 units, and actual production conformed to expectations.Sales totaled 37,000 units at $42 each.Costs incurred were: If there were no variances, the company's absorption-costing income would be: A) $155,000. B) $230,000. C) $240,500. D) $592,000. E) None of the answers is correct. If there were no variances, the company's absorption-costing income would be:


A) $155,000.
B) $230,000.
C) $240,500.
D) $592,000.
E) None of the answers is correct.

F) A) and B)
G) A) and D)

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Under absorption costing, which of the following is not considered a product cost?


A) direct labor.
B) direct materials.
C) variable manufacturing overhead.
D) administrative costs.
E) fixed manufacturing overhead.

F) B) and D)
G) A) and E)

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D

Foxtrot reported $65,000 of income for the year by using absorption costing.The company had no beginning inventory, planned and actual production of 20,000 units, and sales of 18,000 units.Standard variable manufacturing costs were $20 per unit, and total budgeted fixed manufacturing overhead was $100,000.If there were no variances, income under variable costing would be:


A) $15,000.
B) $55,000.
C) $65,000.
D) $75,000.
E) $115,000.

F) A) and B)
G) B) and D)

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Which of the following statements is false regarding absorption costing?


A) Variable overhead is treated as a product cost.
B) Fixed overhead is treated as a product cost.
C) Fixed overhead is expensed in the period incurred.
D) Absorption costing is required for tax purposes.
E) Absorption costing is required for external financial statements prepared in accordance with generally

F) C) and D)
G) A) and E)

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On an absorption-costing income statement, fixed overhead costs are period costs.

A) True
B) False

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