Module 3 Quiz

 Correct Answers20  Incorrect Answers0  Points 40 /40 (100%)

Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced, the number of units sold, or other measures of volume. True False

 Which of the following activities would be classified as a batch-level activity?

A. Setting up equipment.

B. Designing a new product.

C. Training employees.

D. Milling a part required for the final product.

 

Allocating common fixed costs to segments on segmented income statements reduces the usefulness of such statements. True False

Net sales less segment fixed costs. The segment margin. D. C. The impact on net operating income of short-run changes in sales for a segment can be most clearly predicted by analyzing: A. True False   A cost center is also a responsibility center. The contribution margin ratio. The ratio of the segment margin to sales.   In activity-based costing. True False  Designing a new product is an example of (an): . True False   Activity-based costing is a costing method that is designed to provide managers with product cost information for external financial reports. B. some manufacturing costs may be excluded from product costs.

Batch-level activity. Organization-sustaining activity. C.700. $56. $69.800. D. . B. C. $45. Unit-level activity.  Younie Corporation has two divisions: the South Division and the West Division. The South Division's divisional segment margin is $42.800.700. D.900.900.A. B.800 and the West Division's divisional segment margin is $29. The corporation's net operating income is $26. Product-level activity. $72. What is the amount of the common fixed expense not traceable to the individual divisions? A.

$314. A cost center. What is the company's net operating income? A.  A segment is any part or activity of an organization about which a manager seeks cost.500  A segment of a business responsible for both revenues and expenses would be called: A. ($314.800 B. revenue.700. The total amount of common fixed expenses not traceable to the individual divisions is $163.800. B.000 and the Export Products Division's divisional segment margin is $59.800) C. $478. $151. The Governmental Products Division's divisional segment margin is $255. or profit data.100 D. True False  Dukelow Corporation has two divisions: the Governmental Products Division and the Export Products Division. .

500. $374.600.200). and traceable fixed expenses of $186. What is the company's net operating income? A. variable expenses of $301. The Alpha Division has sales of $510. B. A profit center. The Beta Division has sales of $580.500. and traceable fixed expenses of $222.400. True False  Miscavage Corporation has two divisions: the Beta Division and the Alpha Division.500. variable expenses of $178.000. C. ($34.   A responsibility center is a business segment whose manager has control over costs. .100.300. C.An investment center. Residual income. The total amount of common fixed expenses not traceable to the individual divisions is $235. D. or investments in operating assets. D. $609.900. $201. revenues.000.

$149.400.000.. D.400. $217. B. C. the costs of idle capacity and organization-sustaining costs) will not be assigned to products.700 and the GBI Division's divisional segment margin is $175.100. The corporation's net operating income is $42.e. Uchimura Corporation has two divisions: the AFE Division and the GBI Division. The AFE Division's divisional segment margin is $15. What is the amount of the common fixed expense not traceable to the individual divisions? A.700. $191. some manufacturing costs (i. .100  An activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles because: A. $57. B.

Specialized fixed costs. first-stage allocations may be based on subjective interview data. all of the above are reasons why an activity-based costing system that is designed for internal decision-making will not conform to generally accepted accounting principles. B. what is the best measure of the long-run profitability of a segment? .  In a segmented contribution format income statement.  In order to properly report segment margin as a guide to long-run segment profitability and performance. Traceable fixed costs. fixed costs must be separated into two broad categories.some non-manufacturing costs are assigned to products. D. Committed fixed costs. Discretionary fixed costs. C. D. What is the other category? A. One category is common fixed costs. C.

. B. B.A. Its segment margin minus an allocated portion of common fixed expenses. The contribution margin ratio. True False  The impact on net operating income of short-run changes in sales for a segment can be most clearly predicted by analyzing: A. Its contribution margin. D. C. Its gross margin.   Allocating common fixed costs to segments on segmented income statements reduces the usefulness of such statements. Its segment margin. C. The segment margin.

C. $98.300 and Division B has a contribution margin of $126. Net sales less segment fixed costs. $170.900. $168.400 and total common fixed costs are $34.600.200.200. $133. B. Division A has a contribution margin of $79. . what is J Corporation's net operating income? A.100. If total traceable fixed costs are $72. D.000.The ratio of the segment margin to sales.  J Corporation has two divisions. D.

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