Question 1

The term "relevant range" means the range within which:

Accepted Answer

A)  costs may fluctuate. 
B)  a particular cost formula is valid. 
C)  production may vary. 
D)  relevant costs are incurred. 
A)  costs may fluctuate. 
B)  a particular cost formula is valid. 
C)  production may vary. 
D)  relevant costs are incurred.

Question 2

In describing the cost formula equation Y = a + bX,which of the following statements is correct:

Accepted Answer

A)  "X" is the dependent variable. 
B)  "a" is the fixed component. 
C)  "b" is the fixed component. 
D)  as "X" increases "Y" decreases. 
A)  "X" is the dependent variable. 
B)  "a" is the fixed component. 
C)  "b" is the fixed component. 
D)  as "X" increases "Y" decreases.

Question 3

Significant reductions in committed fixed costs can usually be made on a temporary basis without seriously impairing the long-term goals of a firm.

Accepted Answer

A) True 
 B)False

Question 4

If the contribution margin is $70,000 and the total of variable expenses is $50,000,then total sales is $120,000.

Accepted Answer

A) True 
 B)False

Question 5

The best estimate of the variable cost per unit for Maxwell Company is?

Accepted Answer

A)  $0.56. 
B)  $1.79. 
C)  $1.95. 
D)  $2.00. 
A)  $0.56. 
B)  $1.79. 
C)  $1.95. 
D)  $2.00.

Question 6

What is the best estimate of the company's variable operating expenses per unit?

Accepted Answer

A)  $35.00 per unit. 
B)  $44.22 per unit. 
C)  $65.95 per unit. 
D)  $71.11 per unit. 
A)  $35.00 per unit. 
B)  $44.22 per unit. 
C)  $65.95 per unit. 
D)  $71.11 per unit.

Question 7

Expense A is a fixed cost;expense B is a variable cost.During the current year the activity level has increased,but is still within the relevant range.In terms of cost per unit of activity,we would expect that:

Accepted Answer

A)  expense A has remained unchanged. 
B)  expense B has decreased. 
C)  expense A has decreased. 
D)  expense B has increased. 
A)  expense A has remained unchanged. 
B)  expense B has decreased. 
C)  expense A has decreased. 
D)  expense B has increased.

Question 8

The expected contribution margin next month is?

Accepted Answer

A)  $11,200. 
B)  $14,400. 
C)  $16,000. 
D)  $17,600. 
A)  $11,200. 
B)  $14,400. 
C)  $16,000. 
D)  $17,600.

Question 9

Which of the following classifications best describes the behaviour of Cost B?

Accepted Answer

A)  Mixed. 
B)  Variable. 
C)  Fixed. 
D)  Direct. 
A)  Mixed. 
B)  Variable. 
C)  Fixed. 
D)  Direct.

Question 10

If 110,000 machine hours of activity are projected for next period,total expected overhead cost would be?

Accepted Answer

A)  $242,500. 
B)  $256,000. 
C)  $263,500. 
D)  $306,625. 
A)  $242,500. 
B)  $256,000. 
C)  $263,500. 
D)  $306,625.

Question 11

An example of a committed fixed cost is:

Accepted Answer

A)  a training program for salespersons. 
B)  executive travel expenses. 
C)  property taxes on the factory building. 
D)  new product research and development. 
A)  a training program for salespersons. 
B)  executive travel expenses. 
C)  property taxes on the factory building. 
D)  new product research and development.

Question 12

The following data pertains to activity and utility costs for two recent years:   Using the high-low method,the cost formula for utilities is?

Accepted Answer

A)  $1.20 per unit. 
B)  $1.50 per unit. 
C)  $3,000 plus $3.00 per unit. 
D)  $4,500 plus $0.75 per unit. 
A)  $1.20 per unit. 
B)  $1.50 per unit. 
C)  $3,000 plus $3.00 per unit. 
D)  $4,500 plus $0.75 per unit.

Question 13

At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600.Using the high-low method,the cost formula for maintenance is?

Accepted Answer

A)  $1.16 per unit. 
B)  $1.20 per unit. 
C)  $600 plus $1.10 per unit. 
D)  $1,200 plus $1.10 per unit. 
A)  $1.16 per unit. 
B)  $1.20 per unit. 
C)  $600 plus $1.10 per unit. 
D)  $1,200 plus $1.10 per unit.

Question 14

What is the best estimate of the company's variable operating expenses per unit?

Accepted Answer

A)  $0.24 per unit. 
B)  $0.71 per unit. 
C)  $0.90 per unit. 
D)  $4.17 per unit. 
A)  $0.24 per unit. 
B)  $0.71 per unit. 
C)  $0.90 per unit. 
D)  $4.17 per unit.

The term "relevant range" means the range within which:

In describing the cost formula equation Y = a + bX,which of the following statements is correct:

Significant reductions in committed fixed costs can usually be made on a temporary basis without seriously impairing the long-term goals of a firm.

If the contribution margin is $70,000 and the total of variable expenses is $50,000,then total sales is $120,000.

The best estimate of the variable cost per unit for Maxwell Company is?

What is the best estimate of the company's variable operating expenses per unit?

Expense A is a fixed cost;expense B is a variable cost.During the current year the activity level has increased,but is still within the relevant range.In terms of cost per unit of activity,we would expect that:

The expected contribution margin next month is?

Which of the following classifications best describes the behaviour of Cost B?

If 110,000 machine hours of activity are projected for next period,total expected overhead cost would be?

An example of a committed fixed cost is:

The following data pertains to activity and utility costs for two recent years: Using the high-low method,the cost formula for utilities is?

At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600.Using the high-low method,the cost formula for maintenance is?

What is the best estimate of the company's variable operating expenses per unit?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

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Exam 3: Systems Design: Activity-Based Costing

The term "relevant range" means the range within which:

In describing the cost formula equation Y = a + bX,which of the following statements is correct:

Significant reductions in committed fixed costs can usually be made on a temporary basis without seriously impairing the long-term goals of a firm.

If the contribution margin is $70,000 and the total of variable expenses is $50,000,then total sales is $120,000.

The best estimate of the variable cost per unit for Maxwell Company is?

What is the best estimate of the company's variable operating expenses per unit?

Expense A is a fixed cost;expense B is a variable cost.During the current year the activity level has increased,but is still within the relevant range.In terms of cost per unit of activity,we would expect that:

The expected contribution margin next month is?

Which of the following classifications best describes the behaviour of Cost B?

If 110,000 machine hours of activity are projected for next period,total expected overhead cost would be?

An example of a committed fixed cost is:

The following data pertains to activity and utility costs for two recent years: Using the high-low method,the cost formula for utilities is?

At an activity level of 6,000 units the cost for maintenance is $7,200 and at 10,000 units the cost for maintenance is $11,600.Using the high-low method,the cost formula for maintenance is?

What is the best estimate of the company's variable operating expenses per unit?

An Introduction to Managerial Accounting and Cost Concepts

Systems Design: Job-Order Costing

Systems Design: Process Costing

Cost Behavior: Analysis and Use

Cost-Volume-Profit Relationships

Profit Planning

Standard Costs

Flexible Budgets and Overhead Analysis

Decentralization

Relevant Costs for Decision Making

Capital Budgeting Decisions

How Well Am I Doing Statement of Cash Flows

How Well Am I Doing Financial Statement Analysis

Filters