Cost Management Paper 7

1

The amount of raw materials left over from a production process or production cycle for which there is no further use is






2

"Jacob Corp. wishes to determine the fixed portion of its maintenance expense (a semivariable expense), as measured against direct labor hours, for the first 3 months of the year. The inspection costs are fixed; the adjustments necessitated by errors found during inspection account for the variable portion of the maintenance costs. Information for the first quarter is as follows:"
Direct Labor Hours Maintenance Expense
January 34,000 $610
February 31,000 $585
March 34,000 $610
What is the fixed portion of Jacob’s maintenance expense, rounded to the nearest dollar?






3

When compared with normal spoilage, abnormal spoilage






4

The upper limit of a company’s productive output capacity given its existing resources is called






5

Practical capacity as a plant capacity concept






6

A controllable expense






7

A cost that bears an observable and known relationship to a quantifiable activity base is a(n)






8

The cost associated with abnormal spoilage ordinarily is charged to






9

An imputed cost is






10

Committed costs are costs that






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