(Identify the costs below as variable, fixed, or mixed) Moctezuma Furniture Corporation incurred the following costs

Identify the costs below as variable, fixed, or mixed.

E5-4 Moctezuma Furniture Corporation incurred the following costs.
1. Wood used in the production of furniture.
2. Fuel used in delivery trucks.
3. Straight-line depreciation on factory building.
4. Screws used in the production of furniture.
5. Sales staff salaries.
6. Sales commissions.
7. Property taxes.
8. Insurance on buildings
9. Hourly wages of furniture craftsmen.
10. Salaries of factory supervisors.
11. Utilities expense.

Click here for the solution: (Identify the costs below as variable, fixed, or mixed) Moctezuma Furniture Corporation incurred the following costs

For each of the following costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed (f) or variable (v)

2-19 Basic Concepts

For each of the following costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed (f) or variable (v) and whether they are most likely period costs (p) or product cost (m) and under full absorption costing.

1. Energy to run machines producing units of output in the factory.
2. Depreciation on the building for administrative staff offices.
3. Bonuses of top executives in the company.
4. Overtime pay for assembly workers.
5. Transportation-in costs on materials purchased.
6. Assembly line workers’ wages.
7. Sales commissions for sales personnel.
8. Administrative support for sales supervisors.
9. Controller’s office rental.
10. Cafeteria costs for the factory.


Click here for the solution: For each of the following costs incurred in a manufacturing firm, indicate whether the costs are most likely fixed (f) or variable (v)

How does the variable costing approach differ from the absorption costing approach?

16. How does the variable costing approach differ from the absorption costing approach? Explain the different income statement formats used with each approach.


Click here for the solution: How does the variable costing approach differ from the absorption costing approach?

In a decision analysis situation, which one of the following costs is not likely to contain a variable cost component?

MULTIPLE CHOICE

1) In a decision analysis situation, which one of the following costs is not likely to contain a variable cost component? (CMA adapted, 6/96)

2) You have been asked to help a student health center determine which costs will vary with the number of students who come to the health center. The health center employs one doctor, three nurses, and several other employees. How would you classify (1) the nurse's salary and (2) film and other materials used in radiology to give X-rays to students? The nurse’s salary would be considered a ______, while the film and other materials would be considered a ______.

3) Given the following information:
Sales $5,000
Fixed Expenses 2,000
Variable Expenses 1,750

What would expected net income be if the company experienced a 10 percent increase in fixed costs and 10 percent increase in sales volume?

4) Pete's Pizza Place wishes to determine which of its costs will vary with the number of pizzas made. The Pizza Place has four pizza makers and ten other employees who take orders from customers and perform other tasks. The four pizza makers and the other employees are paid an hourly wage. How would one classify (1) the wages paid to the pizza makers and other employees and (2) materials (e.g., cheeses, sauce, etc.) used to make the pizza? The employees’ wages would be considered a ______, while the materials to make the pizza are a ______.

5) Which of the following statements is (are) true?
(1). An asset is a cost that will be matched with revenues in a future accounting period.
(2). Opportunity costs are recorded as intangible assets in the current accounting period.

6) If the fixed costs for a product decrease and the variable costs (as a percentage of sales dollars) decrease, what will be the effect on the contribution margin ratio and the breakeven point respectively? The contribution margin ratio will _____ and the breakeven point will _____.

7) Which of the following activities would not be considered a value-added activity?

8) The development of just-in-time (JIT) methods of production focused on

9) The field of accounting that depends on generally accepted accounting principles (GAAP) is called

10) Inventoriable costs:


Click here for the solution: In a decision analysis situation, which one of the following costs is not likely to contain a variable cost component?

The Great Fish Taco Corporation currently has fixed operating costs of $15,000, sells its premade tacos for $6 per box, and incurs variable operating costs of $2.50 per box

E13-2 The Great Fish Taco Corporation currently has fixed operating costs of $15,000, sells its premade tacos for $6 per box, and incurs variable operating costs of $2.50 per box. If the firm has a potential investment that would simultaneously raise its fixed costs to $16,500 and allow it to charge a per-box sale price of $6.50 due to better-textured tacos, what will the impact be on its operating breakeven point in boxes?

Click here for the solution: The Great Fish Taco Corporation currently has fixed operating costs of $15,000, sells its premade tacos for $6 per box, and incurs variable operating costs of $2.50 per box