Question 1

If the proportions in a sales mix change, the

Accepted Answer

A)  contribution margin per unit increases. 
B)  break-even point will remain the same. 
C)  cost-volume-profit relationship also changes. 
D)  net income will not be altered. 
A)  contribution margin per unit increases. 
B)  break-even point will remain the same. 
C)  cost-volume-profit relationship also changes. 
D)  net income will not be altered. C

Question 2

Assuming a constant mix of 3 units of X for every 1 unit of Y, a selling price of $18 for X and $24 for Y, variable costs per unit of $12 for X and $14 for Y, and total fixed costs of $89,600, the break-even point in units would be

Accepted Answer

A)  9,600 units of X and 3,200 units of Y. 
B)  2,400 units of X and 800 units of Y. 
C)  3,200 units of X and 9,600 units of Y. 
D)  1,867 units of X and 622 units of Y. 
A)  9,600 units of X and 3,200 units of Y. 
B)  2,400 units of X and 800 units of Y. 
C)  3,200 units of X and 9,600 units of Y. 
D)  1,867 units of X and 622 units of Y. A

Question 3

Hampton Company, a producer of computer disks, has the following information:
  
-The contribution margin ratio equals

Accepted Answer

A)  revenue minus variable costs. 
B)  variable costs divided by revenue. 
C)  contribution margin divided by revenue. 
D)  variable costs divided by contribution margin. 
A)  revenue minus variable costs. 
B)  variable costs divided by revenue. 
C)  contribution margin divided by revenue. 
D)  variable costs divided by contribution margin. C

Question 4

The Alexander Company produces one type of machine. The following information is available for your review:   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 120.

Accepted Answer

a. $108,000/($4,800 - $3,600)

Question 5

Use the following information to answer the next question(s).
  
-If the firm wants to earn $70,000 in before-tax profit, contribution margin must equal

Accepted Answer

A)  $98,000. 
B)  $110,000. 
C)  $125,000. 
D)  $155,000. 
A)  $98,000. 
B)  $110,000. 
C)  $125,000. 
D)  $155,000.

Question 6

The variable-cost ratio is

Accepted Answer

A)  all variable costs divided by fixed costs. 
B)  net income divided by all variable costs. 
C)  fixed costs divided by all variable costs. 
D)  all variable costs divided by sales. 
A)  all variable costs divided by fixed costs. 
B)  net income divided by all variable costs. 
C)  fixed costs divided by all variable costs. 
D)  all variable costs divided by sales.

Question 7

If total fixed costs are $420,000, contribution margin per unit is $6.75, the tax rate is 40 percent, and the number of units to be sold is 130,000, then the after-tax net income will be

Accepted Answer

A)  $457,500. 
B)  $877,500. 
C)  $420,000. 
D)  $274,500. 
A)  $457,500. 
B)  $877,500. 
C)  $420,000. 
D)  $274,500.

Question 8

A cost that changes in direct proportion to changes in the cost driver.

Accepted Answer

The answer of A cost that changes in direct proportion...

Question 9

Hampton Company, a producer of computer disks, has the following information:
  
-What is the contribution margin per unit?

Accepted Answer

A)  0.40 
B)  0.60 
C)  1.00 
D)  None of the above. 
A)  0.40 
B)  0.60 
C)  1.00 
D)  None of the above.

Question 10

Reese, Inc. produces pliers. Each pair of pliers sells for $8.00. Variable costs per unit total $5.60 of which $2.50 is for direct materials and $2.10 is for direct labour.
-If total fixed costs are $213,000, then the break-even volume in sales dollars is

Accepted Answer

A)  $710,000. 
B)  $304,288. 
C)  $370,432. 
D)  $177,500. 
A)  $710,000. 
B)  $304,288. 
C)  $370,432. 
D)  $177,500.

Question 11

If the sales price per unit is $150.00, variable cost per unit is $80.00, targeted net income is $44,000, and total fixed costs are $33,000, the number of units that must be sold is

Accepted Answer

A)  513. 
B)  1,100. 
C)  963. 
D)  629. 
A)  513. 
B)  1,100. 
C)  963. 
D)  629.

Question 12

Hampton Company, a producer of computer disks, has the following information:
  
-The horizontal axis on the cost-volume-profit graph is the

Accepted Answer

A)  dollars of cost. 
B)  sales volume. 
C)  dollars of revenue. 
D)  net income. 
A)  dollars of cost. 
B)  sales volume. 
C)  dollars of revenue. 
D)  net income.

Question 13

Use the following information to answer the next question(s).
  
-Contribution margin per unit is

Accepted Answer

A)  $15. 
B)  $50. 
C)  $55. 
D)  $80. 
A)  $15. 
B)  $50. 
C)  $55. 
D)  $80.

Question 14

Hampton Company, a producer of computer disks, has the following information:
  
-What is the break-even point in units?

Accepted Answer

A)  36,000 
B)  90,000 
C)  60,000 
D)  54,000 
A)  36,000 
B)  90,000 
C)  60,000 
D)  54,000

Question 15

The relative proportions of quantities of products that comprise total sales.

Accepted Answer

The answer of The relative proportions of quantities of products...

Question 16

The manner in which the activities of an organization affect its costs.

Accepted Answer

The answer of The manner in which the activities of...

Question 17

The study of the effects of output volume on revenue, expenses, and net income.

Accepted Answer

Cost-volum

Question 18

Hampton Company, a producer of computer disks, has the following information:
  
-Barrell Company, a producer of computer disks, has the following information:   What sales volume in dollars is needed to obtain a targeted after-tax income of $12,000?

Accepted Answer

A)  $84,000 
B)  $180,000 
C)  $210,000 
D)  $230,000 
A)  $84,000 
B)  $180,000 
C)  $210,000 
D)  $230,000

Question 19

If fixed expenses doubled, the break-even point in units would double and the break-even point in dollars would be cut in half.

Accepted Answer

A) True 
 B)False

Question 20

The level of sales at which revenue equals expenses, and net income is zero.

Accepted Answer

The answer of The level of sales at which revenue...

If the proportions in a sales mix change, the

Assuming a constant mix of 3 units of X for every 1 unit of Y, a selling price of $18 for X and $24 for Y, variable costs per unit of $12 for X and $14 for Y, and total fixed costs of $89,600, the break-even point in units would be

Hampton Company, a producer of computer disks, has the following information: -The contribution margin ratio equals

The Alexander Company produces one type of machine. The following information is available for your review: 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 120.

Use the following information to answer the next question(s). -If the firm wants to earn $70,000 in before-tax profit, contribution margin must equal

The variable-cost ratio is

If total fixed costs are $420,000, contribution margin per unit is $6.75, the tax rate is 40 percent, and the number of units to be sold is 130,000, then the after-tax net income will be

A cost that changes in direct proportion to changes in the cost driver.

Hampton Company, a producer of computer disks, has the following information: -What is the contribution margin per unit?

Reese, Inc. produces pliers. Each pair of pliers sells for $8.00. Variable costs per unit total $5.60 of which $2.50 is for direct materials and $2.10 is for direct labour. -If total fixed costs are $213,000, then the break-even volume in sales dollars is

If the sales price per unit is $150.00, variable cost per unit is $80.00, targeted net income is $44,000, and total fixed costs are $33,000, the number of units that must be sold is

Hampton Company, a producer of computer disks, has the following information: -The horizontal axis on the cost-volume-profit graph is the

Use the following information to answer the next question(s). -Contribution margin per unit is

Hampton Company, a producer of computer disks, has the following information: -What is the break-even point in units?

The relative proportions of quantities of products that comprise total sales.

The manner in which the activities of an organization affect its costs.

The study of the effects of output volume on revenue, expenses, and net income.

Hampton Company, a producer of computer disks, has the following information: -Barrell Company, a producer of computer disks, has the following information: What sales volume in dollars is needed to obtain a targeted after-tax income of $12,000?

If fixed expenses doubled, the break-even point in units would double and the break-even point in dollars would be cut in half.

The level of sales at which revenue equals expenses, and net income is zero.

Management Accounting and Management Decisions

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters

Exam 2: Cost Behaviour and Cost-Volume Relationships

If the proportions in a sales mix change, the

Assuming a constant mix of 3 units of X for every 1 unit of Y, a selling price of $18 for X and $24 for Y, variable costs per unit of $12 for X and $14 for Y, and total fixed costs of $89,600, the break-even point in units would be

Hampton Company, a producer of computer disks, has the following information: -The contribution margin ratio equals

The Alexander Company produces one type of machine. The following information is available for your review: 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 120.

Use the following information to answer the next question(s). -If the firm wants to earn $70,000 in before-tax profit, contribution margin must equal

The variable-cost ratio is

If total fixed costs are $420,000, contribution margin per unit is $6.75, the tax rate is 40 percent, and the number of units to be sold is 130,000, then the after-tax net income will be

A cost that changes in direct proportion to changes in the cost driver.

Hampton Company, a producer of computer disks, has the following information: -What is the contribution margin per unit?

Reese, Inc. produces pliers. Each pair of pliers sells for $8.00. Variable costs per unit total $5.60 of which $2.50 is for direct materials and $2.10 is for direct labour. -If total fixed costs are $213,000, then the break-even volume in sales dollars is

If the sales price per unit is $150.00, variable cost per unit is $80.00, targeted net income is $44,000, and total fixed costs are $33,000, the number of units that must be sold is

Hampton Company, a producer of computer disks, has the following information: -The horizontal axis on the cost-volume-profit graph is the

Use the following information to answer the next question(s). -Contribution margin per unit is

Hampton Company, a producer of computer disks, has the following information: -What is the break-even point in units?

The relative proportions of quantities of products that comprise total sales.

The manner in which the activities of an organization affect its costs.

The study of the effects of output volume on revenue, expenses, and net income.

Hampton Company, a producer of computer disks, has the following information: -Barrell Company, a producer of computer disks, has the following information: What sales volume in dollars is needed to obtain a targeted after-tax income of $12,000?

If fixed expenses doubled, the break-even point in units would double and the break-even point in dollars would be cut in half.

The level of sales at which revenue equals expenses, and net income is zero.

Management Accounting and Management Decisions

Measurement of Cost Behaviour

Cost Management Systems

Cost Allocation and Activity-Based Costing Systems

Job-Costing Systems

Process-Costing Systems

Relevant Information and Decision Making: Marketing Decisions

Relevant Information and Decision Making: Production Decisions

Capital Budgeting Decisions

The Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems, the Balanced Scorecard, and Responsibility Accounting

Management Control in Decentralized Organizations

Filters