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Exam 2: Different Costs for Different Purposes

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Question 141

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Chapple Manufacturing provided the following information for last month: $\begin{array} { l r } \text { Sales } & \$ 12000 \\\text { Variable costs } & 4000 \\\text { Fixed costs } & 1000 \\\text { Operating profit } & \$ 7000\end{array}$ If sales double next month,what is the projected operating profit?

A) $19 000
B) $15 000
C) $18 000
D) $14 000

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Question 142

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The main difference between variable costing and absorption costing is the way in which fixed manufacturing costs are accounted for.

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Question 143

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For retail sector companies,period costs in the income statement are all costs not related to the cost of goods purchased for resale.

What term is used to describe the assignment of direct costs to a particular cost object?

Period costs are all costs in the income statement other than:

Which of the following reflects what products costs for financial statement purposes may include?

The income under variable costing will always be the same as the income under absorption costing.

Brenda Hicks is paid $10 an hour for straight-time and $15 an hour for overtime.One week she worked 42 hours,which included 2 hours of overtime.Compensation would be reported as:

What are costing systems that identify the cost of each activity,such as testing,design,or set-up called?

Costs which are not economically feasible to trace but which are related to a cost object are known as:

A manufacturing plant produces two product lines: football equipment and cricket equipment.Direct costs for the football equipment line are the:

Cost accumulation is the collection of cost data in some organised way by means of an:

Accountants define a resource sacrificed or forgone to achieve a specific objective.

________ is the collection of cost data in some organised way by means of an accounting system.

Combs,Inc. ,reports the following information for September sales: $\begin{array} { l r } \text { Sales } & \$ 25000 \\\text { Variable costs } & 6000 \\\text { Fixed costs } & \underline { 8000 } \\\text { Operating profit } & \$ 11000\end{array}$ Required: If sales double in October,what is the projected operating profit?

Answer the following questions using the information below: $\begin{array}{lr}\text { Beginning finished goods, } 1 / 1 / 2018 & \$ 80000 \\\text { Ending firished goods, } 12 / 31 / 2018 & 67000 \\\text { Cost of goods sold } & 270000 \\\text { Sales revenue } & 500000 \\\text { Operating expenses } & 145000\end{array}$ -What is operating profit for 2018?

For manufacturing sector companies,period costs in the income statement are all:

Variable costing regards fixed manufacturing overhead as a(n) :

For last year,Lewisburn Manufacturing reported the following: $\begin{array}{|l|r|}\hline \text { Revenue } & \$ 420,000 \\\hline \text { Beginning inventory of direct materials, January 1 } & 22,000 \\\hline \text { Purchases of direct materials } & 146,000 \\\hline \text { Ending inventory of direct materials, December 31 } & 16,000 \\\hline \text { Direct manufacturing labour } & 40,000 \\\hline \text { Indirect manufacturing costs } & 35,000 \\\hline \text { Beginning inventory of finished goods, January 1 } & 104,000 \\\hline \text { Cost of goods manufactured } & 36,000 \\\hline \text { Ending inventory of finished goods, December 31 } & 140,000\\\hline \end{array}$ How much of the above would be considered period costs for Lewisburn Manufacturing?

A retailer's inventory would normally include: