MA mid test PG night

The components of prime cost are​ (a)   and ​ (b)  

• direct material
• factory overhead
• direct labor
• manufacturing overhead

Conversion cost are consisted of ​ (a)   and​ (b)  

• direct labor
• direct material
• overhead
• production wages

If the vertical lines represent monetary value, the red line is ..... graph

• total fixed cost

• total variable cost

• total cost

Managerial accounting is bounded with rules, reflected in the accounting standard determined by the profession association.

• TRUE

• FALSE

A company produces many varieties of products, being sold at almost the same prices due to the mass production in nature even in different packages and simple features. What costing method that you will recommend? ​ (a)  

• Process costing
• ABC costing
• Job order costing

Match the company and the suitable costing method.

• job order costing

• Garments - producing customizes clothings

• activity-based costing

• Car producers - many varieties of car, at many different prices range, processed with complex activities.

• process costing

• Aice Ice cream - producing many products with almost the same price

Factory overhead applied data: $4.900. Your subordinates reports these cost components at the end of production: (1) wages by $3.200, (2) machine depreciation: $500, (3) factory supplies $1.000, marketing office telecommunication expenses $500. The position of factory overhead is

• Underapplied by $200

• Overapplied by $300

• Underapplied by $300

• Overapplied by $200

Esai 1 - Explain your understanding on the differences between managerial accounting and financial accounting? (5 points)

a)      Explain the graph of cost behavior. Mentions the examples and also types of each cost. (5 Points)

b)      If the company is facing a very high fixed cost. What will you firstly analyze and reduce? Discretionary fixed cost or committed fixed cost? Why? (5 points)

Essay 3 - These are the data of electricity billing during the year. Using the high low method, you are required to predict the budget of electricity bill for the next year. The company predicts that next year, they will increase the electricity usage by 10-20% due to the increased demand of products. Provide the budget range for next year? (15)