COST CONCEPTS TEST 2
Question 11 - IMA 08-P2-104 - Classifications of Costs The marketing manager of Ames Company has learned the following about a new product that is being introduced by Ames. Sales of this product are planned at $100,000 for the first year. Sales commission expense is budgeted at 8% of sales plus the marketing manager's incentive budgeted at an additional 1/2%. The preparation of a product brochure will require 20 hours of marketing salaried staff time at an average rate of $100 per hour, and 10 hours, at $150 per hour, for an outside illustrator's effort. The variable marketing cost for this new product will be A. $8,500 B. $10,500 C. $8,000 D. $10,000 Question 12 - CMA 693 3-4 - Classifications of Costs A fixed cost that would be considered a direct cost is A. A cost accountant's salary when the cost object is a unit of product. B. A production supervisor's salary when the cost object is the Production Department. C. Board of directors' fees when the cost objec...