Managerial Accounting Review (50 MC Questions)

See the attached file for the full list of questions.

Please select the correct choice for each one ...

Use the following to answer question 1:

Marger, Inc., provided the following data for two recent months: (see attachment)

1. Which of the following classifications best describes the behavior of Cost T?
A) Variable
B) Fixed
C) Mixed
D) None of the above

2. The following data pertains to activity and maintenance costs for two recent years:

Using the high-low method, the cost formula for maintenance would be:
A) $1.50 per unit.
B) $1.25 per unit.
C) $3,000 plus $1.50 per unit.
D) $6,000 plus $0.75 per unit.

3. Rible Company has observed that at an activity level of 8,000 units the cost for maintenance is $15,000, and at 10,000 units the cost for maintenance is $16,500. Using the high-low method, the cost formula for maintenance is:
A) $15,000 plus $0.15 per unit.
B) $9,000 plus $0.75 per unit.
C) $1.65 per unit.
D) $1.875 per unit.

4. Which of the following types of firms likely would have a high proportion of variable costs in its cost structure?
A) Public utility.
B) Airline.
C) Fast food outlet.
D) Architectural firm.

5. Factory overhead is an example of a:
A) mixed cost.
B) fixed cost.
C) variable cost.
D) irrelevant cost.

Please see attachment for complete list of questions (50 in all).

Attachments

Solution Summary

The solutions to the 50 questions are computed by hand on the .pdf files attached to the solution. There are good detail explanations and the material is readable.