Question 1

When a manager talks about cost behavior,she is referring to

Accepted Answer

A) the way in which total costs change in response to changes in the level of activity. 
B) the method used to determine whether a cost is accrued or expensed. 
C) both the way in which total costs change in response to changes in the level of activity and the method used to determine whether a cost is accrued or expensed. 
D) neither the way in which total costs change in response to changes in the level of activity or the method used to determine whether a cost is accrued or expensed. 
A) the way in which total costs change in response to changes in the level of activity. 
B) the method used to determine whether a cost is accrued or expensed. 
C) both the way in which total costs change in response to changes in the level of activity and the method used to determine whether a cost is accrued or expensed. 
D) neither the way in which total costs change in response to changes in the level of activity or the method used to determine whether a cost is accrued or expensed.

Question 2

J Bryson,Ltd.is a local coat retailer.The store's accountant prepared the following income statement for the month ended January 31.
   
Bryson sells its coats for $250 each.Selling expenses consist of fixed costs plus a commission of $6.50 per coat.Administrative expenses consist of fixed costs plus a variable component equal to 6% of sales.
Required: 
a.Prepare a contribution format income statement for January.
b.Using the format y = mx + b,develop a cost formula for the operating expenses.
c.If 2,700 coats are sold next month,what is the expected total contribution margin?

Accepted Answer

a.coats sold = $750,000 / $250 = 3,000 u

Question 3

GAAP-based income statements categorize expenses based on
A.business function.
B.cost behavior.
C.dollar amount.
D.contribution margin.

Accepted Answer

A) True 
 B)False

Question 4

Express the relationship between total cost TC,variable cost per

Accepted Answer

The answer of Express the relationship between total cost TC,variable...

Question 5

Any cost that varies in proportion to a business activity is a

Accepted Answer

A) fixed cost. 
B) variable cost. 
C) mixed cost. 
D) step cost. 
A) fixed cost. 
B) variable cost. 
C) mixed cost. 
D) step cost.

Question 6

To calculate the unit cost of the Neoprene stockingfoot waders he sells, Gary Guinn added up all his costs and divided by the number of waders he sold during the year. He then used this unit cost to estimate total costs for the coming year. Explain why Gary’s method is not useful in predicting total costs for the coming year.

Accepted Answer

Gary did not consider what portion of hi

Question 7

If an organization wants to make a profit,it must generate more sales revenue than the total costs it incurs.Which of the following is not a correct expression of the profit equation?

Accepted Answer

A) Operating income = Sales revenue - Total variable costs - Total fixed costs 
B) Operating income = Sales revenue - Discretionary costs - Fixed costs 
C) Operating income = [Sales price per unit - Variable cost per unit x # units sold] - Fixed cost 
D) Operating income = [Contribution margin per 
A) Operating income = Sales revenue - Total variable costs - Total fixed costs 
B) Operating income = Sales revenue - Discretionary costs - Fixed costs 
C) Operating income = [Sales price per unit - Variable cost per unit x # units sold] - Fixed cost 
D) Operating income = [Contribution margin per

Question 8

You are considering moving off campus.You have found a two-bedroom apartment for $1,200 per month,but you cannot afford that much rent.You are considering inviting up to three of your friends to become your roommates.The relationship between the number of roommates,the total cost,and the cost per person is:   This is an example of a

Accepted Answer

A) fixed cost. 
B) variable cost. 
C) mixed cost. 
D) step cost. 
A) fixed cost. 
B) variable cost. 
C) mixed cost. 
D) step cost.

Question 9

A contribution format income statement classifies costs by

Accepted Answer

A) behavior. 
B) function. 
C) constraints. 
D) product. 
A) behavior. 
B) function. 
C) constraints. 
D) product.

When a manager talks about cost behavior,she is referring to

GAAP-based income statements categorize expenses based on A.business function. B.cost behavior. C.dollar amount. D.contribution margin.

Express the relationship between total cost TC,variable cost per

Any cost that varies in proportion to a business activity is a

If an organization wants to make a profit,it must generate more sales revenue than the total costs it incurs.Which of the following is not a correct expression of the profit equation?

A contribution format income statement classifies costs by

Accounting As a Tool for Management

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity Based Management

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralizing and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Topic Focus Customer Profitability

Filters

Exam 2: Cost Behavior and Cost Estimation

When a manager talks about cost behavior,she is referring to

GAAP-based income statements categorize expenses based on A.business function. B.cost behavior. C.dollar amount. D.contribution margin.

Express the relationship between total cost TC,variable cost per

Any cost that varies in proportion to a business activity is a

If an organization wants to make a profit,it must generate more sales revenue than the total costs it incurs.Which of the following is not a correct expression of the profit equation?

A contribution format income statement classifies costs by

Accounting As a Tool for Management

Cost-Volume-Profit Analysis and Pricing Decisions

Product Costs and Job Order Costing

Planning and Forecasting

Performance Evaluation: Variance Analysis

Activity-Based Costing and Activity Based Management

Using Accounting Information to Make Managerial Decisions

Capital Budgeting

Decentralizing and Performance Evaluation

Performance Evaluation Revisited: a Balanced Approach

Financial Statement Analysis

Statement of Cash Flows

Topic Focus: Process Costing

Topic Focus Variable and Absorption Costing

Topic Focus Standard Costing Systems

Topic Focus Customer Profitability

Filters