Which of the following is not an advantage of standard costing? It enables managers to manage by exception It works well with long and short product life cycles It provides a means of performance evaluation and employee rewards It provides a basis for sensible cost comparisons

Mastery Problem: Contribution Margin, Cost-Volume-Profit Analysis and Break-Even Point (Overview) Fixed, Variable and Mixed Costs An appreciation of cost behavior is needed in order for management to understand and predict profitability as the costs of material, labor and other operating expenses and levels of production and sales change. It's important to review the cost behavior of fixed, variable and mixed costs before contribution margins, cost-volume-profit analysis, and break-even points.   1.  In the table below, Have-A-Seat Inc. has outlined many of the costs associated with producing office chairs. With respect to the production and sale of office chairs, classify each cost as: a.fixed b.mixed c.variable.   a.  Pressure-molded plastic for chair frames   b.  Pension cost: $0.50 per employee hour on the job   c.  Insurance premiums for inventory: $2,100 per month plus $0.01 for each dollar of inventory over $2 million   d.  Property taxes: $120,000 per year for…

QUESTION 23 Expenses can be categorized by whether the cost incurred is directly related to production or not.     If directly related, it will not change with the production level, thus called Fixed Cost.     If directly related, it will change with the production level, thus called Fixed Cost.     If not directly related, it will not change with the production level, thus called Variable Cost.     If not directly related, it will change with the production level, thus called Variable Cost.     None of the above is a correct statement.

Contribution Margin, Cost-Volume-Profit Analysis and Break-Even Point (Overview) Fixed, Variable and Mixed Costs An appreciation of cost behavior is needed in order for management to understand and predict profitability as the costs of material, labor and other operating expenses and levels of production and sales change. It's important to review the cost behavior of fixed, variable and mixed costs before contribution margins, cost-volume-profit analysis, and break-even points. 1.   In the table below, Have-A-Seat Inc. has outlined many of the costs associated with producing office chairs. With respect to the production and sale of office chairs, classify each cost as fixed, mixed, or variable. a.  Pressure-molded plastic for chair frames   b.  Pension cost: $0.50 per employee hour on the job   c.  Insurance premiums for inventory: $2,100 per month plus $0.01 for each dollar of inventory over $2 million   d.  Property taxes: $120,000 per year for the factory building and…

QUESTION 28 Which of the following is not a reason for cost allocation?   A. Maximization of direct cost efficiency   B. Cost-based reimbursement   C. Cost determination of product or service   D. Cross-department monitoring