Managerial Accounting Reports Assignment

Variable costs are costs that remain constant on a 22. What term a. factory over a. True b. False Chapter per-unit basis as the level of activity changes. 15. Direct materials and direct labor costs are examples of variable costs of production. b. period cos a. True c. convert d. direct b. False 16. Rental charges of $40,000 per year plus $3 for each machine hour over 18,000 hours is a fixed cost. a. True 23. C example of a b. False 17. The contribution margin ratio is the same as the profit-volume ratio. a. True b.False 18. If sales total $2,000,000, fixed costs total $800,000, and variable costs are 60% of sales, the contribution margin ratio is 60% a. True b. False 19. The data required for determining the break-even point for a business are the total estimated fixed costs for a period, stated as a percentage of net sales. a. True b. False

20. In order to be useful to managers, managerial accounting reports should possess all of the following characteristics except provide objective measures of past operations and subjective estimates about future decisions b. be prepared in accordance with generally accepted accounting principles c. be provided at any time management needs information d. be prepared to report information for any unit of the business to support decision making 21. Goods that are partially completed by a manufacturer are a. merchandise inventory in process inventory finished goods inventory d. materials inventory C. 2016 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

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