WorksheetsManagerial Accounting
Total questions: 10
Worksheet time: 5mins
Which of the following is any cost which cannot be capitalized into a prepaid expense, inventory, or fixed asset?
Period cost
Product cost
Paradox cost
Premium cost
Which of the following is a sunk cost?
Money spent on materials currently in production
Manufacturing overhead
Money spent on an unfinished storage building
Money spent paying employees
Red Manufacturing produces a product at $25 per unit price, sells 1,000 units and accrues $10,500 in variable cost. Which of the following is the contribution margin per unit?
$11.50
$13.50
$12.50
$14.50
Which of the following cost accounting systems assigns manufacturing costs to a product or batches of products and is ideal for companies which produce unique products?
Activity-based costing
Project costing
Job-order costing
Process costing
Jake’s Jump Ropes has a total indirect cost of $500,000 and incurs a direct cost of $100,000. Which of the following is the overhead rate ratio?
5:1
1:5
2:1
1:2
Which of the following is the cost of goods sold for Stan’s Floral if they began the month with $500 inventory, purchased $1,000 of inventory during the month, and ended the month with $200 of inventory?
$1,200
$1,300
$1,400
$1,500
Calculate the purchase price variance for the following scenario. Otto’s Auto Repair purchased a car for $10 a part if they purchased 1,000 parts during the year. Otto’s only purchased 900 parts and they were charged $12 per part.
$1,200
$1,400
$1,600
$1,800
Which of the following is calculated by subtracting the actual amount from the budgeted amount?
Linear regression
Cost-profit value
Variance analysis
Cost
Calculate the selling price variance for the following scenario. Karen’s Office Supply sells a calculator for $50. A new business began selling the same calculator which forces Karen’s to sell the calculator for $44 a piece. Karen’s sold 4,000 calculators during the accounting period at this price.
$20,000
$16,000
$12,000
$8,000
Which of the following is the process of choosing whether to make a product in-house or purchase it from an external source?
Linear regression
Variance Analysis
Cost-profit decision
Make or buy decision
