[M3-E1] Evaluation (Interactive Activity)

Delivery date May 31 at 1:00 p.m. Points 100 Questions 13

Available March 22 at 0:00 - May 31 at 1:00 pm 2 months
Time limit 45 minutes Attempts allowed Unlimited

Instructions
We invite you to develop the evaluation of the module, applying the central contents learned
during week 1.

This evaluation is mandatory, and the grade you obtain will be averaged with the other modules.
Remember that if you obtain a presentation grade equal to or greater than 4.0, you will be
qualified to take the Final Exam of the subject.

or ATTENTION

You have unlimited attempts to take the Assessment, within a period of 45 minutes .

In this evaluation you will find three levels of complexity of questions, in which you must
manage concepts, apply knowledge and think before answering them. Read the activity
carefully, as you may encounter single-choice, combinatorial (association of concepts) and
multiple-choice questions (where there is more than one correct alternative).

To do this, you must:

1. Click on “Take the evaluation” .

2. Read each statement carefully and select the correct answer.

Take the exam again

Attempt history
Tried Hour Score
MORE RECENT Attempt 1 17 minutes 25.83 out of 100
Score for this attempt: 25.83 out of 100
Delivered on May 26 at 3:20 p.m.
This attempt lasted 17 minutes.

Learning result

Analyzes, applies and interprets the procedure and results of costing methods
for decision making, in the production-company context.

Unique selection

In the next item you must recognize the error raised in a given situation. To do this,
read each statement comprehensively, identifying the elements that make up the
situation or case described, which will allow you to identify the only error raised.
Then select the only alternative that identifies said error.
 Question 1 0 / 8.5 pts

A question arises within an organization, which uses variable costing for its
operations, where the cost of production includes all costs related directly and
indirectly to the productive function. Identify the error in the above case:

Variable costing includes indirect manufacturing costs to determine production costs.

®
Traditional costing does not include variable manufacturing overhead costs to determine production
costs.

Answered

Variable costing includes costs related to the structure of the company and whose value varies directly
with the level of production.

Traditional costing does not include indirect manufacturing costs whose value varies directly with the
level of production.

correct answer Q
Variable costing includes costs related to production and whose value varies directly with the level of
production.

Question 2 0 / 8.5 pts

A company works with a direct methodology for the costing of its products and
presentation of the Income Statement. Have a
 monthly disbursement of $2,000,000 for the lease of the productive factory, this is
classified as an indirect manufacturing cost and production cost. Identify the error
in the above case:

®
Answered All rents must be classified as administrative expenses

correct answer Q
It is a fixed disbursement, therefore, it is reflected in the income statement

The disbursement is variable because it is not known how long the rent will be paid.

The lease must be classified as a direct material, understanding that it is necessary for production.

It is a mixed disbursement, it cannot be determined if it is fixed or variable

Question 3___ 0 / 8.5 pts

The operations supervisor is having a conversation with the general manager,

trying to explain the existing costing methods to decide on one, he comments that
the direct method is more logical, understanding that, in the case of not selling all
the production for the period, A fixed cost such as factory rent will be kept in
inventory (asset). Identify the error in the above case:
Answered ®
Factory rent is a fixed cost and should be classified as an indirect manufacturing cost.

Under this assumption, the traditional costing method should be chosen, because costs cannot be
active.

Companies always sell all the units manufactured during the period

either
Fixed costs in the variable methodology are always reflected in the income statement

correct answer

Rental costs should be classified as administrative and selling expenses.

Question 4___ 0 / 8.5 pts

The company TURIÑO SA carries out both costing methods to compare them in
each period and so that they are consistent at the time of being presented. While
determining the income statements for both costing methods, they realized that in
the first month of operations the result was the same, and from then on they began
to differentiate. It is proposed that there must be an error because these results
can never be the same. Identify the error in the above case:
 The result from the absorbent methodology must always be greater than that of the variable
methodology

Answered
®
The results for both costing methods cannot be the same due to the classification of their costs.

The result using absorbent methodology must always be greater than that of the traditional
methodology

either
correct answer The results for both methods can be the same due to the classification of their costs under certain
requirements.

The result from the absorbent methodology must always be lower than that of the variable
methodology.

Question 5___ 8.5 / 8.5 pts

The operations supervisor is having a conversation with the general manager

trying to explain the existing costing methods to decide on one. He comments that
the direct method always leaves a better result, unlike the traditional method which
is quite subjective. Identify the error in the above case:

The traditional and direct methodology are the same, so it does not matter which of them is chosen
 Variable costing methodology is more likely to generate negative results

Correct!
The variable costing methodology will have better results as long as sales are greater than production

Correct. In the variable or traditional methodology, fixed costs, regardless of whether they are
production or marketing, are reflected in the income statement, therefore, for the result to increase, it
is necessary that sales be higher than the production of the period.

The variable costing methodology will have better results while sales are less than production

The traditional costing methodology will have better results as long as sales are greater than
production.

Question 6 0 / 8.5 pts

A new company, which uses the absorption methodology for the costing of its
products and presentation of the Income Statement, has some doubt regarding the
classification of the linear depreciation of its productive machinery, since it is
believed that it could be a fixed production cost. or even be recognized as an
administrative expense. Identify the error in the above case:

correct answer C
Linear depreciation of machinery under traditional costing methodology should be classified as an
indirect manufacturing cost.
Depreciation for units produced of machinery under variable costing methodology must be classified
as an indirect manufacturing cost.

Linear depreciation of machinery under variable costing methodology must be classified as a variable
manufacturing indirect cost.
Answered
Depreciation for units produced of machinery under absorbent costing methodology must be classified
as a fixed manufacturing indirect cost.

The straight-line depreciation of a productive machine should always be classified as an administrative

expense because it cannot be attributable to the products manufactured.

Multiple choice

In this item you must analyze the statement and recognize the causes of the error
raised in the situation. To do this, read the statement comprehensively and analyze
it looking for the causes of the error, then review the
 alternatives and choose those that correspond to the causes of the error raised.
Correct. The absorbent methodology to classify your costs
includes fixed and variable costs, therefore, it is impossible that if the
production increases costs increase with behavior
variable.
____

correct answer □
Question 7 graph is a scheme that represents variable costs under direct
The proposed
5.67 / 8.5 pts
methodology

A company dedicated to the manufacture of tables, which works according to

traditional costing, is having problems explaining to its workers how costs are
classified undergraph
The proposed this ismethodology. To do this,
a diagram that represents they present
the increase the following graph and
in the mixed
indicate
costs that,
of the in this situation,
organization thecosting.
under direct mixed and variable costs are equal:

Correct! □
Mixed costs are not the same as variable or fixed costs, they have a
different behavior

Correct. Mixed
The operations supervisor costs that
explains are those
the that
graphhaveclearly
a fixed behavior
shows within
how ainrange
thisand
traditional costing
then are variable from a certain level of production.
methodology, production is equal to costs, that is, the more produced, the more expensive it is.
Additionally, it indicates that this is the main difference with the direct method, where production
is not proportional to costs, since these do not vary according to the level of production. Identify
the errors in the previous case:

Question 8 0 / 8.5 pts

The proposed graph is a diagram that represents the increase in the organization's fixed costs under traditional costing.

A□ company that uses the traditional costing method has doubts

Correct! The costs under
regarding the the absorption
following costing methodology
classifications are not equitable with
of disbursements production, that is, they vary by
made:
production level.

Concept Classification
Office supplies Non-production variable cost
Linear depreciation of productive Variable Manufacturing
machinery Overhead Cost
Sales commissions Administration and sales
expense
Fixed indirect materials Direct raw material
 Identify the errors in the previous case:

correct answer □
Office supplies should be classified as administrative and sales
expenses.

The company should work with the variable methodology to classify its
costs and expenses

Correct! Q Indirect materials do not correspond to direct raw materials

Correct. As its name says, indirect materials cannot be classified as MPD,

but rather as an indirect manufacturing cost. They are related to production,
but are not directly attributable to each product.

Answered □ Sales commissions are variable non-production costs

correct answer □
Linear depreciation of productive machinery corresponds to an indirect
manufacturing cost

Question 9___ 5.67 / 8.5 pts

The operations supervisor is having a conversation with the general

manager, trying to explain the existing costing methods to decide on
one. He comments that the traditional method is more logical, this is
due to an assumption he heard: “In the variable costing
methodology, sales commissions or any variable cost that is non-
production are left in the inventory in case the units are not sold.
sold, this is because they are part of the unit variable cost, however,
in the
 “Traditional methodology in the inventory only materials and labor
remain.” Identify the errors in the previous case:

correct answer O
When comparing costing methodologies, none is more logical than another, they
only adapt to the needs of the company.

In traditional method inventories, the three cost elements are kept as long as they
are variable.

Correct!
□
Variable marketing costs are not part of the unit cost, and therefore are known not
to be left in inventory.

Correct. Although the variable marketing costs are added to the production costs
in the variable income statement, these are only calculated or integrated into the
units already sold. For example, a sales commission is not determined on a
product that will remain in inventory to be sold in the following period.

When comparing costing methodologies, it is always more logical to use the

variable, always understanding the classification of its costs.

Correct!
Q
In traditional method inventories, the three elements of cost, raw materials, labor
and cif are kept.

Correct. On the contrary, as stated in the case, inventories according to the

traditional method include what is necessary for the manufacture of the products,
regardless of whether fixed or variable costs, the three cost elements must be
included.

Question 10 0 / 8.5 pts

 The operations supervisor of a certain company is developing
calculations to find the unit variable cost of the products
manufactured during the period, but has problems with the
classification of commissions to sellers. He recognizes that this is
an indirect manufacturing cost, but believes that it is not variable,
because sales generally remain constant, therefore, commissions
as well. Identify the errors in the previous statement:

□
Answered Sales commissions have no relation to the cost of the products or the income
statement.

correct answer O

Sales commissions should be classified as marketing costs

correct answer
□ Sales commissions are variable costs

Sales commissions should be classified as variable indirect labor

Sales commissions are fixed marketing costs

Dropdown list

1 2 3
 In this item you must relate the solutions to the error(s) presented,
the errors can be presented as a concept or a phrase. When
answering you should keep in mind that errors may relate to more
than one solution.

Question 11 1 / 5 pts

A new company is evaluating which costing methodology to use and

the production supervisor comments that his last workplace only
relied on the traditional methodology, for the following reasons:
- Fixed costs should always be reflected in the income statement.
- It is easier to obtain positive results or income.
- Variable costs are classified between production and non-
production, which provides greater detail of costs.
- Administrative expenses are usually lower than marketing costs.
- Linear depreciation of machinery will never be reflected in product
inventory because they are fixed costs.
Relate the list of solutions to the errors present in the previous case:

Answered An analysis cannot be Wrong classification of

made between GAV and
Production Costs.
Marketing because they are
different costing
methodologies

Correct Answer It is assumed that

expenses are less
than marketing
costs.
Answered
Ease of obtaining
Fixed costs must be
differentiated between
production and non-production
to be classified in the absorbent
methodology.

Correct answer Wrong classification of

fixed and variable
costs

Correct! In the absorbent Wrong classification of

methodology it is not
relevant whether the costs
are variable or fixed.

Answered The results will depend It is assumed that the

on the production level of expenses
a period

Correct answer Ease of obtaining

favorable results

Answered
The depreciations under Ease of obtaining
absorbent methodology —
They are classified as CIF

Correct answer Wrong classification of

fixed and variable
costs
 Question 12 1 / 5 pts

The company FRAMBU Ltda. During the period, it manufactured

4,000 units and sold a total of 2,900, whose selling price is $570
each. The details of the costs and expenses of the period are
available: - Direct raw materials: $10,000 - Factory lease: $15,000
- Variable labor: $12,000
- Linear depreciation of machinery: $4,000
- Fixed CIF: $6,000
- Office rental: $8,000
- Factory insurance: $2,000
- Office insurance: $1,400
The organization works with an absorbent methodology and
classified its disbursements as follows:
Variable Production Costs Fixed costs

Factory Lease Fixed CIF

Variable labor Office insurance
Linear Depreciation Office rental

Therefore, the variable unit cost would be: ($15,000 + $12,000 +

$4,000) / 2,900 units = $10.69
Relate the list of solutions to the errors present in the previous case:

Answered The classification of Classification error

costs must be between production

and non-production
 Yo

Correct answer Costs are classified

according to
variable
methodology and
some
disbursements
were excluded.

Answered Identify all Determination of cost

disbursements that are
related to the factory

Correct answer Error in classification of

production and
non-production
costs

Answered Add all disbursements Costs are classified

corresponding to MPD,
MOD and CIF to find the
total production cost

Correct answer Error in classification of

production and
non-production
costs

Correct! Determine unit cost Determination of cost

among the units
manufactured

Answered Determine unit cost of Costs are classified

production, non-variable
Correct answer Unit cost determination

Question 13 4 / 5 pts

The company MICHIS SA is dedicated to the manufacture of cat food

and they work with a variable cost methodology. For a month of
operations, it is known that 6,000 KG of food were manufactured and
only 4,800 KG were sold. at a price of $240 each. They have the
following details of their costs and expenses during the month:

Raw material $40.000

Fixed salary factory workers $30.000
Indirect Variable Materials $8.000
Basic factory services $15.600
Sales premises rental $14.000
Sellers Commission $3.800
Machinery depreciation per KG $2.500
produced
Variable salary factory workers $9.500
Factory supervisor fixed remuneration $22.000
CIF variables $6.200
Fixed administrative salaries $18.000

The results statement by variable methodology is as follows:

Sales $1.440.000
- Cost of
Sales $ 133.800
= Gross Margin $ 1.306.200
- Costs
Fixed $ 35.800
= Net result $ 1.270.400
Relate the list of solutions to the errors present in the previous case:
Correct! Variable cost is the sum of Sum of production costs
all costs that are not
constant.

Correct! Modify gross margin to

State of Re Scheme
contribution margin in the
Income Statement

Correct! Fixed costs are the sum Sum of non-p costs

of all costs that are
constant

Correct! Determination of sales

It is assumed that
with units actually sold everything

Answered Modify cost of sales to Sum of costs of not

variable cost in the
Income Statement

Correct Answer Scheme State of

Results

Exam score: 25.83 out of 100