Why is it important to know if a cost ofproduction is fixed or variable? Which oneof the following is an example of a periodcost? A. A change in benefits for the unionworkers who work in the New York plant of aFortune 1,000 manufacturer. B. Workers'compensation insurance on factory workers'wages allocated to the factory. C. A box costassociated with computers. D. A manager'ssalary for work that is done in the corporatehead office. Discuss the role of strategiccost management in the operations of anorganization.

Understanding the Importance of Fixed and Variable CostsLet's break down why it's crucial to…

Answered: Why is it important to know if a cost…

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter2: Building Blocks Of Managerial Accounting

Section: Chapter Questions

Problem 4PA: Listed as follows are various costs found in businesses. Classify each cost as a fixed or variable...

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Which one of the following is an example of a period cost? A change in benefits for the union workers who work in the New York plant of a Fortune 1000 manufacturer. Workers' compensation insurance on factory workers' wages allocated to the factory. A box cost associated with computers. A manager's salary for work that is done in the corporate head office.
1. Which of the following is not a component of factory overhead? a. Payroll taxes share of the employer b. Payroll taxes share of the employee-laborer c. Indirect labor d. Supervision 2. Which of the following is not a component of factory overhead? Utilities expense b. Depreciation expense c. Accumulated depreciation d. Food purchases by cafeteria service department a. 3. Which of the following is part of a regular year-end adjustment to factory overhead? a. Indirect materials b. Factory supplies c. Loss from reprocessing defective units. d. Deprecation 4. What account is credited at year-end adjusting entry for insurance premiums under the so-called "asset method" of accounting? а. Cash b. Prepaid Insurance c. Factory Overhead Control d. Applied Factory Overhead 5. What account is debited at year-end adjusting entry for insurance premiums under the so-called "expense method" of accounting? a. Applied Factory Overhead b, Factory Overhead Control c. Prepaid Insurance d. Insurance…
14. An example of labor-related costs is: a. fringe benefits b. factory labor c. bonus pay d. operating expense 15. Wages in excess of the regular rate paid for work after normal closing time is: a. Vacation and holiday pay b. Pension pay c. Overtime premium d. Regular wage 16. If the job is taken as a rush order with the knowledge that overtime will be necessary, the overtime premium should be charged to: a. General expense b. Factory overhead c. Specific job d. Selling expense 17. If the overtime premium is charge to specific job, it should be debited to: a. Work in process account b. General expense account c. Manufacturing overhead account d. Selling expense account
Company XYZ hired Ali as a factory security guard. The company agreed to pay Ali based on the number of shift hours he works. The salary of Ali can be classified as: Select one: O a. A variable direct labor cost O b. A fixed selling and administrative cost O c. A variable selling and administrative cost O d. A fixed manufacturing overhead cost O e. A variable manufacturing overhead cost
If a company fully allocates all of its overhead costs to jobs, does this guarantee that a profit will be earned for the period?
Which of the following is an “indirect labor” cost? Wages paid to factory janitors and factory security guards. Salaries paid to human resources (HR) personnel. All of the listed choices are correct. Wages paid to factory employees who convert raw materials into work-in-process and finished goods. Sales salaries and commissions paid to salespeople.
The ________ is the hourly price charged to clients for professional labor. salary rate billing rate wage rate job rate
Which one of the following best describes a job cost sheet? A. It is a form used to record the costs chargeable to a specific job and to determine the total and unit costs of the completed job. B. It is used to track manufacturing overhead costs for specific jobs. C. It is used by management to understand how direct costs affect profitability. D. It is a daily form that management uses for tracking worker productivity on which employee raises are based.
Rent on the Administrative building would be? O DM O DL о мон O MOH O elling & Administrative
Which of the following is not a period cost? Group of answer choices Sales commissions. Public relations costs. The salary of a company's chief financial officer (CFO). Legal costs. Wages of assembly-line workers.
Need Correct answer please provide it
Darnell Poston, owner of Poston Manufacturing, Inc., wants to determine the cost behavior of labor and overhead. Darnell pays his workers a salary; during busy times, everyone works to get the orders out. Temps (temporary workers hired through an agency) may be hired to pack and prepare completed orders for shipment. During slower times, Darnell catches up on bookkeeping and administrative tasks while the salaried workers do preventive maintenance, clean the lines and building, etc. Temps are not hired during slow times. Darnell found that workers salaries, temp agency payments, rentals, utilities, and plant and equipment depreciation are the largest dollar accounts. He believes that workers salaries and plant and equipment depreciation are fixed, temp agency payments are associated with the number of orders (since temp workers are used to pack and prepare completed orders for shipment), and electricity is associated with the number of machine hours. When the number of different parts stored by Poston exceeds the space in the materials storeroom, Darnell rents nearby warehouse space. He can rent as much or as little space as he wants on a month-to-month basis. Therefore, he believes warehouse rental payments are variable with the number of parts purchased and stored. The account balances for the past six months as well as the six-month total are as follows: Information on number of machine hours, orders, and parts for the six-month period follows: Required: 1. Calculate the monthly average account balance for each account. Calculate the average monthly amount for each of the three drivers. 2. Calculate fixed monthly cost and the variable rates for temp agency payments, warehouse rent, and electricity. Express the results in the form of an equation for total cost. 3. In July, Darnell predicts there will be 420 orders, 250 parts, and 5,900 machine hours. What is the total labor and overhead cost for July? 4. What if Darnell buys a new machine in July for 24,000? The machine is expected to last 10 years and will have no salvage value at the end of that time. What part of the cost equation will be affected? How? What is the new expected cost in July?

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