Contrast the effects of changes in the activity level on total fixed costs and on unit fixed costs.

In a modified B/C ratio: (a) Disbenefits are put in the denominator. (b) Benefits are subtracted from costs. (c) M&O costs are put in the denominator. (d) M&O costs are put in the numerator.

The 16-ounce box costs $3.36. The 24-ounce box costs$3.96. The smaller box costs how much more per ounce than the larger box?

Match each term with its description.

A. conversion costs

i. total of direct material costs and direct labor costs ii. manufacturing costs of the items sold iii. number of units produced if each unit was produced sequentially iv. total of direct labor costs, indirect labor costs, indirect material costs, and manufacturing overhead v. where costs in a process cost system are reported before being applied to the product vi. detailed listing of the total costs of the product including the value of work in process vii. cost of materials or conversion for a specific department during production viii. product of the total cost per unit and the number of units completed and transferred during the time period

The 2-pound box costs $2.72. The 48-ounce box costs$3.60. The smaller box costs how much more per ounce than the larger box?

The $16$-ounce box costs $\$ 1.12$. The $24$ -ounce box costs $\$1.32$. The smaller box costs how much more per ounce than the larger box?

Langley, Inc. is the manufacturer of lawn care equipment. The company incurs the following costs while manufacturing edgers:

• Handle and shaft of edger
• Motor of edger
• Factory labor for workers assembling edgers
• Lubricant used on bearings in the edger (not traced to the product)
• Glue to hold the housing together
• Plant janitorial wages
• Depreciation on factory equipment
• Rent on plant
• Sales commissions
• Administrative salaries
• Plant utilities
• Shipping costs to deliver finished edgers to customers

Requirements

1. Describe the difference between period costs and product costs.
2. Classify Langley's costs as period costs or product costs. If the costs are product costs, further classify them as direct materials, direct labor, or manufacturing overhead.

The $18$-ounce container costs $\$ 2.16$. The $1$-quart container costs $\$3.36$. The smaller container costs how much more per ounce than the larger container?

"Variable costs and differential costs mean the same thing." Do you agree? Explain.

Which of the following statements is false?

a. Fixed costs are never relevant.
b. Variable costs are never relevant.
c. Usually, variable costs are irrelevant.
d. Step costs are irrelevant when a decision alternative requires moving outside of the existing relevant range.
e. All of these.

A concert ticket costs t dollars, a hamburger costs h dollars, and soda costs s dollars. Write an expression that represents the total cost of a ticket, hamburger, and soda for n people.

List and explain the costs of owning a vehicle. Which of these costs will be the most expensive over time? How will you minimize the costs of ownership and extend the useful life of your car?

If a car decelerates at $250$ m/s$^2$ (about the maximum a human body can survive) during an accident, and the car was going at $96$ km/h at impact, over what distance must an airbag stop a person in order to survive the crash?

Match each term with its description.

H. transferred out costs

i. total of direct material costs and direct labor costs ii. manufacturing costs of the items sold iii. number of units produced if each unit was produced sequentially iv. total of direct labor costs, indirect labor costs, indirect material costs, and manufacturing overhead v. where costs in a process cost system are reported before being applied to the product vi. detailed listing of the total costs of the product including the value of work in process vii. cost of materials or conversion for a specific department during production viii. product of the total cost per unit and the number of units completed and transferred during the time period