Cost Management Paper 10


The difference between the sales price and total variable costs is


A difference between standard costs used for cost control and budgeted costs


A standard costing system is most often used by a firm in conjunction with


The term “gross margin” for a manufacturing firm refers to excess of sales over


Companies characterized by the production of basically homogeneous products will most likely use which of the following methods for the purpose of averaging costs and providing management with unit-cost data?


A standard-cost system may be used in
Process Costing
Job-Order Costing
Activity-Based Costing


Consider the cost of goods sold calculation shown below.
Beginning inventory $100,000
Plus cost of goods manufactured 2,500,000
Less ending inventory -125,000
Plus variable overhead efficiency variance 10,000
Cost of goods sold 2,485,000
This is an example of which cost measurement technique?


Sully, Inc., manufactures wall clocks. Sully sells each clock for $30. Variable manufacturing expense for each clock is $18. Sully plans to sell 400 clocks this month and anticipates incurring $2,600 of fixed expenses. What will be Sully’s total contribution margin this month?


Which one of the following is least likely to be a reason to adopt a standard cost system?


Lucy Sportswear manufactures a specialty line of T-shirts using a job-order costing system. During March, the following costs were incurred in completing job ICU2: direct materials, $13,700; direct labor, $4,800; administrative, $1,400; and selling, $5,600. Overhead was applied at the rate of $25 per machine hour, and job ICU2 required 800 machine hours. If job ICU2 resulted in 7,000 good shirts, the cost of goods sold per unit would be


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