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In: Computers and Technology

Submitted By patrickm88
Words 99469
Pages 398
PART 3A
COST MEASUREMENT CONCEPTS
457 QUESTIONS

[1] Source: CMA 0690 5-27
Costs that arise from periodic budgeting decisions that have no strong input-output relationship are commonly called

A. Committed costs.

B. Discretionary costs.

C. Opportunity costs.

D. Differential costs.

[Fact Pattern #1]
The estimated unit costs for a company using absorption
(full) costing and planning to produce and sell at a level of
12,000 units per month are as follows.

Estimated Cost Item Unit Cost --------- --------- Direct materials $32 Direct labor 20 Variable manufacturing overhead 15 Fixed manufacturing overhead 6 Variable selling 3 Fixed selling 4

[2] Source: CMA 1291 3-27
(Refers to Fact Pattern #1)
Estimated conversion costs per unit are

A. $35.

B. $41.

C. $48.

D. $67.

[3] Source: CMA 1291 3-28
(Refers to Fact Pattern #1)
Estimated prime costs per unit are

A. $73.

B. $32.

C. $67.

D. $52.

[4] Source: CMA 1291 3-29
(Refers to Fact Pattern #1)
Estimated total variable costs per unit are

A. $38.

B. $70.

C. $52.

D. $18.

[5] Source: CMA 1291 3-30
(Refers to Fact Pattern #1)
Estimated total costs that would be incurred during a month with a production level of 12,000 units and a sales level of
8,000 units are

A. $692,000.

B. $960,000.

C. $948,000.

D. $932,000.

[6] Source: CMA 0692 3-6
Departmental overhead rates are usually preferred to plant-wide overhead rates when

A. The activities of each of the various departments in the plant are not homogeneous.

B. The costs of many service...

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