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Question
Classify each of the following cost items as a variable cost, a fixed cost, or a mixed cost by placing an X in the appropriate column. Each cost should be evaluated in terms of the volume of units of finished products produced. Also indicate with an X for each item if it is a product cost or a period cost.
| Variable, Fixed, or Mixed Cost | Product or Period Cost | ||||
| Cost Item | Variable | Fixed | Mixed | Product | Period |
| Executive salary | |||||
| Direct labor | |||||
| Direct materials | |||||
| Depreciation of manufacturing equipment | |||||
| Indirect labor | |||||
| Factory utilities | |||||
| Delivery expense | |||||
| Television advertising | |||||
| Indirect materials | |||||
Answer
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Related questions
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C. It does not matter because both alternatives have the same result.
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Q:
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Periods
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1.6901 3
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Q:
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Q:
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Q:
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Q:
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B. Neither product A nor product B should be processed further.
C. Only product B should be processed further.
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E. A processing further decision cannot be made from the available data.
Q:
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B. Income will increase by $7 per unit.
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D. Income will decrease by $12 per unit.
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Q:
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Q:
Assume markup percentage equals desired profit divided by total costs. What is the correct calculation to determine the dollar amount of the markup per unit?
A. Total cost times markup percentage.
B. Total cost per unit times markup percentage per unit.
C. Total cost per unit divided by markup percentage per unit.
D. Markup percentage per unit divided by total cost per unit.
E. Markup percentage divided by total cost.
Q:
Capital budgeting decisions are generally based on:
A. Tentative predictions of future outcomes.
B. Perfect predictions of future outcomes.
C. Results from past outcomes only.
D. Results from current outcomes only.
E. Speculation of interest rates and economic performance only.
Q:
If net present values are used to evaluate two investments that have equal costs and equal total cash flows, the one with more cash flows in the early years has the higher net present value.