The following information is for Joshua Corporation: $\begin{array}{ll} \text { Tot al fixed costs } & \$ 333,500 \\ \text { Variable costs per unit } & \$ 99 \\ \text { Selling price per unit } & \$ 154 \end{array}$ If total fixed costs increased to $394,850, then break- even volume in dollars would increase by:

A) 34.3% B) 12.3% C) 18.4% D) 10.0% A) 34.3% B) 12.3% C) 18.4% D) 10.0% C

The following information is for Allen Corporation: $\begin{array}{ll} \text { Total fixed costs } & \$ 313,500 \\ \text { Variable costs per unit } & \$ 101 \\ \text { Selling price per unit } & \$ 163 \end{array}$ The contribution- margin ratio is:

A) 64.3% B) 55.6% C) 38.0% D) 35.7% A) 64.3% B) 55.6% C) 38.0% D) 35.7%

Knothole Company sells desks at $480 per desk. The costs associated with each desk are as follows: $\begin{array}{ll} \text { Direct materials } & \$ 195 \\ \text { Direct labor } & 126 \\ \text { Variable factory overhead } & 51 \end{array}$ Total fixed costs for the period are $456,840. The break- even volume in dollars is:

A) $1,573,560 B) $2,030,400 C) $456,840 D) None of these answers is correct. A) $1,573,560 B) $2,030,400 C) $456,840 D) None of these answers is correct.

Exam 2: Introduction to Cost Behavior and Cost Volume Relationships

The following information is for Joshua Corporation: Tot al fixed costs \ 333,500 Variable costs per unit \ 99 Selling price per unit \ 154 If total fixed costs increased to $394,850, then break- even volume in dollars would increase by:

Free

(Multiple Choice)

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Question 1

Correct Answer:

Verified

If total fixed costs are $84,000, contribution margin per unit is $6.00, and targeted after- tax net income is $18,000 with a 40% tax rate, then the number of units which must be sold is:

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

The horizontal axis on the cost- volume- profit graph is the:

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

is how the activities of an organization affect its costs.

(Multiple Choice)

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Question 4

The behavior of revenues and expenses on the CVP graph

(Short Answer)

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Question 5

Too Hot To Handle Company produces fireworks and has provided the following information: Total fixed costs \1 00,000 Unit variable costs \6 Planned unit sales 30,000 The break- even point is 25,000 units. Required: a. Compute the selling price per unit. b. Compute the contribution- margin ratio. c. Compute the break- even volume in dollars. d. Compute the margin of safety.

(Essay)

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Question 6

What are the assumptions used for CVP analysis?

(Essay)

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Question 7

Which of the following statements about highly leveraged companies is true?

(Multiple Choice)

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Question 8

Jefferson Company produces only product A. The following information is available: Selling price per unit \ 95 Variable costs per \ 70 unit Total fixed costs \ 130,000 Required: a. Compute break- even point in units. b. Compute break- even volume in dollars. c. Compute the margin of safety assuming planned unit sales of 6,000.

(Essay)

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Question 9

Target sales - variable expenses - fixed expenses = target net income.

(True/False)

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Question 10

Cost drivers are output measures of both resources and activities.

(True/False)

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Question 11

The change in total results (such as revenue, expenses, or income) under a new condition in comparison with some given or known condition.

(Short Answer)

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Question 12

The following information is for Allen Corporation: Total fixed costs \ 313,500 Variable costs per unit \ 101 Selling price per unit \ 163 The contribution- margin ratio is:

(Multiple Choice)

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Question 13

Knothole Company sells desks at $480 per desk. The costs associated with each desk are as follows: Direct materials \ 195 Direct labor 126 Variable factory overhead 51 Total fixed costs for the period are $456,840. The break- even volume in dollars is:

(Multiple Choice)

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Question 14

As the cost- driver activity level increases within the relevant range:

(Multiple Choice)

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Question 15

Which value chain function would include depreciation of plant and machinery?

(Multiple Choice)

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Question 16

(change in volume in units) x (contribution margin per unit) x (1 - tax rate)

(Short Answer)

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Question 17

An accountant may have difficulty classifying costs as fixed or variable because:

(Multiple Choice)

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Question 18

The is the change in total results under a new condition, in comparison with some given or known condition.

(Multiple Choice)

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Question 19

A good example of a cost driver for production labor wages is the number of machine hours.

(True/False)

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Question 20

Showing 1 - 20 of 194

The following information is for Joshua Corporation: Tot al fixed costs \ 333,500 Variable costs per unit \ 99 Selling price per unit \ 154 If total fixed costs increased to $394,850, then break- even volume in dollars would increase by:

If total fixed costs are $84,000, contribution margin per unit is $6.00, and targeted after- tax net income is $18,000 with a 40% tax rate, then the number of units which must be sold is:

The horizontal axis on the cost- volume- profit graph is the:

is how the activities of an organization affect its costs.

The behavior of revenues and expenses on the CVP graph

What are the assumptions used for CVP analysis?

Which of the following statements about highly leveraged companies is true?

Target sales - variable expenses - fixed expenses = target net income.

Cost drivers are output measures of both resources and activities.

The change in total results (such as revenue, expenses, or income) under a new condition in comparison with some given or known condition.

The following information is for Allen Corporation: Total fixed costs \ 313,500 Variable costs per unit \ 101 Selling price per unit \ 163 The contribution- margin ratio is:

Knothole Company sells desks at $480 per desk. The costs associated with each desk are as follows: Direct materials \ 195 Direct labor 126 Variable factory overhead 51 Total fixed costs for the period are $456,840. The break- even volume in dollars is:

As the cost- driver activity level increases within the relevant range:

Which value chain function would include depreciation of plant and machinery?

(change in volume in units) x (contribution margin per unit) x (1 - tax rate)

An accountant may have difficulty classifying costs as fixed or variable because:

The is the change in total results under a new condition, in comparison with some given or known condition.

A good example of a cost driver for production labor wages is the number of machine hours.

Managerial Accounting and the Business Organization

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information and Decision-Making: Marketing Decisions

Relevant Information and Decision-Making: Product Decisions

The Master Budget

Flexible Budget and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Job-Costing

Process-Costing Systems

Overhead Application: Variable and Absorbtion Costing

Basic Accounting Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

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