Exam 11: Cost Behavior and Cost-Volume-Profit Analysis

Rouney Co.has budgeted salary increases to factory supervisors totaling 10%.If selling prices and all other cost relationships are held constant,next year's break-even point will

(Multiple Choice)

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Question 61

If employees accept a wage contract that decreases the unit contribution margin,the break-even point will decrease.

(True/False)

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Question 62

For purposes of analysis,mixed costs are generally

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Question 63

If direct materials cost per unit decreases,the break-even point will increase.

(True/False)

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Question 64

The following cost graphs illustrate various types of cost behaviors. For each of the following costs,identify the cost graph that best describes its cost behavior as the number of units produced and sold increases.

(Essay)

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Question 65

In cost-volume-profit analysis,all costs are classified into the following two categories:

(Multiple Choice)

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Question 66

Total variable costs change as the level of activity changes.

(True/False)

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Question 67

A rental cost of $40,000 plus $0.50 per machine hour of use is an example of a mixed cost.

(True/False)

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Question 68

Which of the following describes the behavior of the fixed cost per unit?

(Multiple Choice)

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Question 69

Break-even analysis is one type of cost-volume-profit analysis.

(True/False)

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Question 70

Currently,Zane Company's unit selling price is $30,the variable cost is $14,and the total fixed costs are $96,000.A proposal is being evaluated to increase the selling price to $34.

(Essay)

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Question 71

A mixed cost has characteristics of both a variable cost and a fixed cost.

(True/False)

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Question 72

The contribution margin ratio is

(Multiple Choice)

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Question 73

If a business sells two products,it is NOT possible to estimate the break-even point.

(True/False)

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Question 74

If fixed costs are $850,000 and variable costs are 70% of sales,what is the break-even point (in dollars)?

(Multiple Choice)

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Question 75

Fixed costs are costs that vary in total dollar amount as the level of activity changes.

(True/False)

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Question 76

Which of the following conditions would cause the break-even point to increase?

(Multiple Choice)

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Question 77

Rental charges of $60,000 per year plus $2 for each machine hour over 15,000 hours is an example of a fixed cost.

(True/False)

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Question 78

Cost behavior refers to the methods used to estimate costs for use in managerial decision making.

(True/False)

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Question 79

Which ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

(Multiple Choice)

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Question 80

Showing 61 - 80 of 139

Rouney Co.has budgeted salary increases to factory supervisors totaling 10%.If selling prices and all other cost relationships are held constant,next year's break-even point will

If employees accept a wage contract that decreases the unit contribution margin,the break-even point will decrease.

For purposes of analysis,mixed costs are generally

If direct materials cost per unit decreases,the break-even point will increase.

The following cost graphs illustrate various types of cost behaviors. For each of the following costs,identify the cost graph that best describes its cost behavior as the number of units produced and sold increases.

In cost-volume-profit analysis,all costs are classified into the following two categories:

Total variable costs change as the level of activity changes.

A rental cost of $40,000 plus $0.50 per machine hour of use is an example of a mixed cost.

Which of the following describes the behavior of the fixed cost per unit?

Break-even analysis is one type of cost-volume-profit analysis.

Currently,Zane Company's unit selling price is $30,the variable cost is $14,and the total fixed costs are $96,000.A proposal is being evaluated to increase the selling price to $34.

A mixed cost has characteristics of both a variable cost and a fixed cost.

The contribution margin ratio is

If a business sells two products,it is NOT possible to estimate the break-even point.

If fixed costs are $850,000 and variable costs are 70% of sales,what is the break-even point (in dollars)?

Fixed costs are costs that vary in total dollar amount as the level of activity changes.

Which of the following conditions would cause the break-even point to increase?

Rental charges of $60,000 per year plus $2 for each machine hour over 15,000 hours is an example of a fixed cost.

Cost behavior refers to the methods used to estimate costs for use in managerial decision making.

Which ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

The Role of Accounting in Business

Basic Accounting Concepts

Accrual Accounting Concepts

Accounting for Merchandising Businesses

Sarbanes-Oxley,internal Control,and Cash

Receivables and Inventories

Fixed Assets and Intangible Assets

Liabilities and Stockholders Equity

Financial Statement Analysis

Accounting Systems for Manufacturing Businesses

Differential Analysis and Product Pricing

Budgeting and Standard Cost Systems

Performance Evaluation for Decentralized Operations

Capital Investment Analysis

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