Cost Review

Managerial accounting is geared towards...

• Investors & Creditors

• The IRS

• External Users

• Internal Users

Which of the following is NOT a product cost?

• Direct Materials

• Direct Labor

• Advertising

• Manufacturing Overhead

Which of the following is a period cost?

• Shipping products

• Depreciation on production equipment

• Salary of factory supervisor

• Health insurance for factory employees

Variable cost per unit...

• Increases with activity

• Decreases with activity

• Does not change

• Cannot be calculated

Total fixed costs...

• Increases with activity

• Decreases with activity

• Does not change

• Cannot be calculated

Sales - variable expenses =

• Gross margin

• Contribution margin

• Net income

• Cost of goods sold

A cost that includes fixed and variable components is a...

• fixiable cost

• varifixed cost

• mixed cost

• period cost

Manufacturing overhead includes...

• Direct labor

• Direct materials

• Indirect labor

• Selling & admin

Break-even point is when...

• Sales = Expenses

• Contribution Margin = Fixed expenses

• Net Income = 0

• All are correct

Effective planning begins with a...

• Cash budget

• Sales budget

• Production budget

• Labor budget