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Which one of the following categories of cost is most likely not considered a component of fixed factory overhead?
1- Rent
2- Property taxes
3- Depreciation
4- Power
Right answer is 4- power Electricity is considered a variable cost as it changes with the volume of production
The category of cost that is most likely not considered a component of fixed factory overhead is "Power" (Option 4). Fixed factory overhead typically
includes costs that remain relatively stable over time, regardless of the level of production, such as rent, property taxes, and depreciation. In contrast, power costs may vary with the level of production or activity in the
factory and are often classified as a variable cost. This is supported by multiple sources, including
Depreciation is the allocation of the cost of a tangible asset over its useful life and is typically treated as a separate item in the financial statements rather than as a component of overhead costs.
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which of the following is the best example of variable cost?
1- The Corporate presidnt's salary
2-Cost of raw material
3-Interst Charges
4-Propert taxes
Answer 2 is correct
materials. Variable costs are expenses that change in direct proportion to the level of production or activity within a business. When a company produces more units or provides more
services, the cost of raw materials increases accordingly. Conversely, when production decreases, the cost of raw materials decreases as well. This makes it a prime example of a variable cost
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Which one of the following is correct regarding a relevant range?
A. Total variable costs will not change.
B. Total fixed costs will not change.
C. The relevant range cannot be changed after being established.
D. The relevant range will remain the same as long as prices do not change.
Answer: B) Total fixed costs will not change
Explanation: The relevant range is the level of activity wherein total fixed costs and variable costs per unit are expected to be unchanged
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From the following budgeted data, calculate the budgeted indirect cost rate that would be used in a normal costing syste
Total direct labor hours 250,000
Direct costs $10,000,000
50,000 Total indirect labor hours
Total indirect-labor-related costs $ 5,000,000
Total indirect non-labor related costs $ 7,000,000
a. $20.
b. $28.
c. $40.
d. $48.
Total Direct Labor Hours: 250,000
Total Indirect-Labor-Related Costs: $5,000,000
Total Indirect Non-Labor Related Costs: $7,000,000
Now, plug these values into the formula
Budgeted Indirect Cost Rate = ($5,000,000 + $7,000,000) / 250,000
Budgeted Indirect Cost Rate = $12,000,000 / 250,000
Budgeted Indirect Cost Rate = $48 per direct labor hour
So, the correct answer is (d) $48
Under actual costing, rates are based on costs incurred, while in normal costing, rates are based on the anticipated total efficiency of production. For example, the actual number of units produced at each rate might be lower than your team expected, resulting in inefficient use of resources and higher costs per unit
في ظل التكاليف الفعلية، تعتمد الأسعار على التكاليف المتكبدة، بينما في التكاليف العادية، تعتمد الأسعار على الكفاءة الإجمالية المتوقعة للإنتاج. على سبيل المثال، قد يكون العدد الفعلي للوحدات المنتجة بكل معدل أقل مما توقعه فريقك، مما يؤدي إلى استخدام غير فعال للموارد وارتفاع التكاليف لكل وحدة
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A company provides fertilization, insect control, and disease control services for a variety of trees
plants, and shrubs on a contract basis. For $50 per month, the company will visit the subscriber's premises and
apply appropriate mixtures. If the subscriber has any problems between the regularly scheduled application
dates, the company’s personnel will promptly make additional service calls to correct the situation. Some
subscribers elect to pay for an entire year because the company offers an annual price of $540 if paid in advance
For a subscriber who pays the annual fee in advance, the company should recognize the related revenue
.A. When the cash is collected
.B. Evenly over the year as the services are performed
.C. At the end of the contract year after all of the services have been performed
.D. At the end of the fiscal year
Answer (B) is correct. Revenues should be recognized when (1) realized or realizable and (2) earned. The most common time at which these two conditions are met is when goods are delivered or services are rendered. In the situation presented, the performance of the service (monthly spraying) is so significant to creating a sufficient probability of a flow of future economic benefits that it should be the triggering event for revenue recognition
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?Which of the following classifications is correct? Prime Cost/ Conversion Cost
A-Direct labour and materials /Direct labour and material and manufacturing overhead
B-Direct labour and direct materials /Direct labour and manufacturing overhead
C-Direct materials/ Direct labour
D-Raw materials/ Work in process
Correct answer: (B)
Direct labour and direct materials /Direct labour and manufacturing overhead
Prime Cost = Direct Material Cost + Direct Labor Cost + Direct Expenses
Conversion Costs are the total of direct labor and factory overhead costs. They are combined because it is the labor and overhead together that convert the raw material into the finished product
موضوع: سؤال وجواب cma 2024 الجزء الثالث 
الخميس أبريل 18, 2024 10:25 am