Question 1

The relevant range applies to ________.

Accepted Answer

A) variable costs 
B) fixed costs 
C) fixed costs and variable costs 
D) none of the above 
A) variable costs 
B) fixed costs 
C) fixed costs and variable costs 
D) none of the above

Question 2

Which value chain function would use the following cost driver: weight of items delivered?

Accepted Answer

A) marketing 
B) distribution 
C) customer service 
D) none of the above 
A) marketing 
B) distribution 
C) customer service 
D) none of the above

Question 3

Due to limited resources,sales of every type of product cannot be maximized.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) incremental effect 
B) detrimental effect 
C) conditional effect 
D) exclusive effect 
A) incremental effect 
B) detrimental effect 
C) conditional effect 
D) exclusive effect

Question 5

The CVP graph shows how costs behave over different relevant ranges.

Accepted Answer

A) True 
 B)False

Question 6

Highly leveraged companies are less risky than companies with low leverage.

Accepted Answer

A) True 
 B)False

Question 7

Selling expenses are found in the cost of goods sold.

Accepted Answer

A) True 
 B)False

Question 8

The following information is available for Kismer Corporation:   If management has a targeted net income of $59,400,then sales revenue should be ________.

Accepted Answer

A) $239,721 
B) $580,067 
C) $671,220 
D) $932,250 
A) $239,721 
B) $580,067 
C) $671,220 
D) $932,250

Question 9

Goy Company has a break-even point of 88,000 units.The contribution margin per unit is $9.60.The desired pre-tax profit is $18,096.How many units must be sold to achieve the desired profit?

Accepted Answer

A) 1,885 units 
B) 88,000 units 
C) 89,885 units 
D) indeterminate 
A) 1,885 units 
B) 88,000 units 
C) 89,885 units 
D) indeterminate

Question 10

What happens when the cost-driver level increases within the relevant range?

Accepted Answer

A) total fixed costs remain unchanged 
B) fixed costs per unit increases 
C) total variable costs decrease 
D) variable costs per unit increases 
A) total fixed costs remain unchanged 
B) fixed costs per unit increases 
C) total variable costs decrease 
D) variable costs per unit increases

Question 11

If the contribution margin per unit increases,what is the effect on the break-even point? (Assume no other changes.)

Accepted Answer

A) The break-even point increases. 
B) The break-even point decreases. 
C) The break-even point remains the same. 
D) The break-even point will be zero. 
A) The break-even point increases. 
B) The break-even point decreases. 
C) The break-even point remains the same. 
D) The break-even point will be zero.

Question 12

Assume the following facts for two products,Zip and Zap:   If total fixed costs are $53,760,the break-even point in units would be ________.

Accepted Answer

A) 4,800 units of Zip and 1,600 units of Zap 
B) 1,200 units of Zip and 400 units of Zap 
C) 1,600 units of Zip and 4,800 units of Zap 
D) 8,400 units of Zip and 2,800 units of Zap 
A) 4,800 units of Zip and 1,600 units of Zap 
B) 1,200 units of Zip and 400 units of Zap 
C) 1,600 units of Zip and 4,800 units of Zap 
D) 8,400 units of Zip and 2,800 units of Zap

The relevant range applies to ________.

Which value chain function would use the following cost driver: weight of items delivered?

Due to limited resources,sales of every type of product cannot be maximized.

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

The CVP graph shows how costs behave over different relevant ranges.

Highly leveraged companies are less risky than companies with low leverage.

Selling expenses are found in the cost of goods sold.

The following information is available for Kismer Corporation: If management has a targeted net income of $59,400,then sales revenue should be ________.

Goy Company has a break-even point of 88,000 units.The contribution margin per unit is $9.60.The desired pre-tax profit is $18,096.How many units must be sold to achieve the desired profit?

What happens when the cost-driver level increases within the relevant range?

If the contribution margin per unit increases,what is the effect on the break-even point? (Assume no other changes.)

Assume the following facts for two products,Zip and Zap: If total fixed costs are $53,760,the break-even point in units would be ________.

Managerial Accounting, the Business Organization

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 2: Introduction to Cost Behavior and Cost-Volume Relationships

The relevant range applies to ________.

Which value chain function would use the following cost driver: weight of items delivered?

Due to limited resources,sales of every type of product cannot be maximized.

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

The CVP graph shows how costs behave over different relevant ranges.

Highly leveraged companies are less risky than companies with low leverage.

Selling expenses are found in the cost of goods sold.

The following information is available for Kismer Corporation: If management has a targeted net income of $59,400,then sales revenue should be ________.

Goy Company has a break-even point of 88,000 units.The contribution margin per unit is $9.60.The desired pre-tax profit is $18,096.How many units must be sold to achieve the desired profit?

What happens when the cost-driver level increases within the relevant range?

If the contribution margin per unit increases,what is the effect on the break-even point? (Assume no other changes.)

Assume the following facts for two products,Zip and Zap: If total fixed costs are $53,760,the break-even point in units would be ________.

Managerial Accounting, the Business Organization

Measurement of Cost Behavior

Cost Management Systems and Activity-Based Costing

Relevant Information for Decision Making With a Focus

Relevant Information for Decision Making With a Focus

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Order Costing and Process-Costing Systems

Basic Accounting: Concepts, techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters