A) either fixed or variable cost components, but not both. B) only variable cost components, both within and outside of the relevant range. C) only fixed cost components, both within and outside of the relevant range. D) both fixed and variable cost components. A) either fixed or variable cost components, but not both. B) only variable cost components, both within and outside of the relevant range. C) only fixed cost components, both within and outside of the relevant range. D) both fixed and variable cost components.

A) is the same as a fixed cost. B) is an activity that causes total costs to change. C) is the same as margin of safety. D) is a method of calculating mixed costs. A) is the same as a fixed cost. B) is an activity that causes total costs to change. C) is the same as margin of safety. D) is a method of calculating mixed costs.

A) is fixed over a wider range of activity than a step cost. B) is a fixed cost over the relevant range and a variable cost everywhere else. C) contains both fixed and variable components. D) always increases on a per unit basis. A) is fixed over a wider range of activity than a step cost. B) is a fixed cost over the relevant range and a variable cost everywhere else. C) contains both fixed and variable components. D) always increases on a per unit basis.

Exam 5: Cost Behavior and Estimation

Laurel Company sold 500 units for $450 each. Variable costs were $280 per unit, and total fixed expenses were $53,000. Prepare a contribution margin income statement.

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Question 81

A mixed cost has:

(Multiple Choice)

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Question 82

Sage, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: a. What is Sage's total fixed cost? b. What is Sage's variable cost per unit? c. What total cost would Sage predict for a month in which they sold 10,000 units?

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Question 83

Chill Out Novelties sells ice cream bars from a kiosk near campus. Fixed costs are $200 per week and the variable cost is $0.50 per ice cream bar. Complete the following table for the levels of ice cream bars sold per week. Round your answers to two decimal places.

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Question 84

Firms may choose to use absorption costing or variable costing for external financial reporting purposes

(True/False)

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Question 85

Variable costing uses a contribution margin income statement

(True/False)

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Question 86

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: What is Star's variable cost per unit?

(Multiple Choice)

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Question 87

Profit will be the same under variable costing as under full absorption costing whenever:

(Multiple Choice)

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Question 88

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: What is Star's total fixed cost?

(Multiple Choice)

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Question 89

Jasper Enterprises had the following cost and production information for April: What is Jasper Enterprise's income under absorption costing?

(Multiple Choice)

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Question 90

A cost driver:

(Multiple Choice)

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Question 91

Carson, which uses the high-low method, reported total costs of $24 per unit at its lowest activity level, when production equaled 10,000 units. When production doubled, at its highest activity level, the total cost per unit dropped to $15. Carson would estimate variable cost per unit as:

(Multiple Choice)

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Question 92

Step costs are fixed over some range of activity and then increase like a variable cost

(True/False)

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Question 93

A fixed cost will stay constant on a per unit basis as the volume increases

(True/False)

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Question 94

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: What total cost would Star predict for a month in which production is 2,000 units?

(Multiple Choice)

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Question 95

A mixed cost:

(Multiple Choice)

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Question 96

Boxwood Company sells wooden boxes from a kiosk in a mall. Fixed costs are $2,500 per month and the variable cost is $2.75 per item. Complete the following table for the levels of units sold.

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Question 97

Acme Company sold 900 units for $110 each. Variable costs were $75 per unit and total fixed expenses were $22,000. Prepare a contribution margin income statement.

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Question 98

Mohave, Inc. produces approximately 4,000 units per month, and it places a quality assurance logo on each of its units. To use this logo, it must pay the quality assurance firm $5,000 per month plus $1 per unit. The cost to Mohave of using the quality assurance logo would be a:

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Question 99

Harbor Images has collected the following cost data for various levels of activity: a. Using the high-low method, determine the variable cost per image created and the total fixed cost. b. Estimate the total costs when 5,500 images are created.

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Question 100

Showing 81 - 100 of 127

Laurel Company sold 500 units for $450 each. Variable costs were $280 per unit, and total fixed expenses were $53,000. Prepare a contribution margin income statement.

A mixed cost has:

Sage, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: a. What is Sage's total fixed cost? b. What is Sage's variable cost per unit? c. What total cost would Sage predict for a month in which they sold 10,000 units?

Chill Out Novelties sells ice cream bars from a kiosk near campus. Fixed costs are $200 per week and the variable cost is $0.50 per ice cream bar. Complete the following table for the levels of ice cream bars sold per week. Round your answers to two decimal places.

Firms may choose to use absorption costing or variable costing for external financial reporting purposes

Variable costing uses a contribution margin income statement

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: What is Star's variable cost per unit?

Profit will be the same under variable costing as under full absorption costing whenever:

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: What is Star's total fixed cost?

Jasper Enterprises had the following cost and production information for April: What is Jasper Enterprise's income under absorption costing?

A cost driver:

Carson, which uses the high-low method, reported total costs of $24 per unit at its lowest activity level, when production equaled 10,000 units. When production doubled, at its highest activity level, the total cost per unit dropped to $15. Carson would estimate variable cost per unit as:

Step costs are fixed over some range of activity and then increase like a variable cost

A fixed cost will stay constant on a per unit basis as the volume increases

Star, Inc. used Excel to run a least-squares regression analysis, which resulted in the following output: What total cost would Star predict for a month in which production is 2,000 units?

A mixed cost:

Boxwood Company sells wooden boxes from a kiosk in a mall. Fixed costs are $2,500 per month and the variable cost is $2.75 per item. Complete the following table for the levels of units sold.

Acme Company sold 900 units for $110 each. Variable costs were $75 per unit and total fixed expenses were $22,000. Prepare a contribution margin income statement.

Mohave, Inc. produces approximately 4,000 units per month, and it places a quality assurance logo on each of its units. To use this logo, it must pay the quality assurance firm $5,000 per month plus $1 per unit. The cost to Mohave of using the quality assurance logo would be a:

Harbor Images has collected the following cost data for various levels of activity: a. Using the high-low method, determine the variable cost per image created and the total fixed cost. b. Estimate the total costs when 5,500 images are created.

Introduction to Managerial Accounting

Job-Order Costing

Process Costing

Activity-Based Cost Management

Cost-Volume-Profit Analysis

Incremental Analysis for Short-Term Decision Making

Budgeting and Planning

Standard Costing and Variances

Decentralized Performance Evaluation

Capital Budgeting

Statement of Cash Flows

Financial Statement Analysis

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