Question 1

Which of the following is NOT an example of a cost that varies in total as the number of units produced changes?

Accepted Answer

A)  Electricity per KWH to operate factory equipment 
B)  Direct materials cost 
C)  Straight-line depreciation on factory equipment 
D)  Wages of assembly worker 
A)  Electricity per KWH to operate factory equipment 
B)  Direct materials cost 
C)  Straight-line depreciation on factory equipment 
D)  Wages of assembly worker

Question 2

If the property tax rates are increased, this change in fixed costs will result in a decrease in the break-even point.

Accepted Answer

A) True 
 B)False

Question 3

The following data are available from the accounting records of Suwanee Co. for the month ended May 31, 2012. 17,000 units were manufactured and sold during the accounting period at a price of $60 per unit. There was no beginning inventories and all units were completed (no work in process).

Accepted Answer

The answer of The following data are available from the...

Question 4

Global Publishers has collected the following data for recent months:
   Required:
a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation.
b. What is the estimated cost for a month in which 19,000 issues are published?

Accepted Answer

a. Variable cost per unit = ($22,464 - $

Question 5

Douglas Company has a contribution margin ratio of 30%. If Douglas has $336,420 in fixed costs, what amount of sales will need to be generated in order for the company to break even?

Accepted Answer

$336,420 /

Question 6

If yearly insurance premiums are increased, this change in fixed costs will result in an increase in the break-even point.

Accepted Answer

A) True 
 B)False

Question 7

Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000?

Accepted Answer

A)  $8,000 increase 
B)  $8,000 decrease 
C)  $30,000 decrease 
D)  $30,000 increase 
A)  $8,000 increase 
B)  $8,000 decrease 
C)  $30,000 decrease 
D)  $30,000 increase

Question 8

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

Accepted Answer

A)  Varies in increasing proportion with changes in the activity level 
B)  Varies in decreasing proportion with changes in the activity level 
C)  Remains constant with changes in the activity level 
D)  Varies in direct proportion with the activity level 
A)  Varies in increasing proportion with changes in the activity level 
B)  Varies in decreasing proportion with changes in the activity level 
C)  Remains constant with changes in the activity level 
D)  Varies in direct proportion with the activity level

Question 9

Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are:   Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in units?

Accepted Answer

A)  40,000 units 
B)  12,000 units 
C)  35,000 units 
D)  28,000 units 
A)  40,000 units 
B)  12,000 units 
C)  35,000 units 
D)  28,000 units

Question 10

The Keith Company reports the following data.

Accepted Answer

Determine Keith Company's oper

Question 11

The Dean Company has sales of $500,000, and the break-even point in sales dollars of $300,000. Determine the company's margin of safety percentage.

Accepted Answer

40% = ($50

Question 12

The manufacturing cost of Mocha Industries for three months of the year are provided below:

Accepted Answer

Using the high-low method, determine the

Question 13

If fixed costs are $450,000 and the unit contribution margin is $50, the sales necessary to earn an operating income of $50,000 are 10,000 units.

Accepted Answer

A) True 
 B)False

Question 14

The ratio that indicates the percentage of each sales dollar available to cover the fixed costs and to provide operating income is termed the contribution margin ratio.

Accepted Answer

A) True 
 B)False

Question 15

Given the following cost data, what type of cost is shown?

Accepted Answer

A)  mixed cost 
B)  variable cost 
C)  fixed cost 
D)  none of the above 
A)  mixed cost 
B)  variable cost 
C)  fixed cost 
D)  none of the above

Question 16

Given the following cost and activity observations for Taco Company's utilities, use the high-low method to calculate Taco's variable utilities costs per machine hour.

Accepted Answer

A)  $10.00 
B)  $.60 
C)  $.40 
D)  $.52 
A)  $10.00 
B)  $.60 
C)  $.40 
D)  $.52

Question 17

The graph of a variable cost when plotted against its related activity base appears as a:

Accepted Answer

A)  circle 
B)  rectangle 
C)  straight line 
D)  curved line 
A)  circle 
B)  rectangle 
C)  straight line 
D)  curved line

Question 18

Which of the following activity bases would be the most appropriate for food costs of a hospital?

Accepted Answer

A)  Number of cooks scheduled to work 
B)  Number of x-rays taken 
C)  Number of patients who stay in the hospital 
D)  Number of scheduled surgeries 
A)  Number of cooks scheduled to work 
B)  Number of x-rays taken 
C)  Number of patients who stay in the hospital 
D)  Number of scheduled surgeries

Question 19

Variable costs are costs that vary in total in direct proportion to changes in the activity level.

Accepted Answer

A) True 
 B)False

Question 20

Copper Hill Inc. manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year. The following partially completed manufacturing cost schedule has been prepared:

Accepted Answer

Complete the preceding cost sc

Which of the following is NOT an example of a cost that varies in total as the number of units produced changes?

If the property tax rates are increased, this change in fixed costs will result in a decrease in the break-even point.

The following data are available from the accounting records of Suwanee Co. for the month ended May 31, 2012. 17,000 units were manufactured and sold during the accounting period at a price of $60 per unit. There was no beginning inventories and all units were completed (no work in process).

Global Publishers has collected the following data for recent months: Required: a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. b. What is the estimated cost for a month in which 19,000 issues are published?

Douglas Company has a contribution margin ratio of 30%. If Douglas has $336,420 in fixed costs, what amount of sales will need to be generated in order for the company to break even?

If yearly insurance premiums are increased, this change in fixed costs will result in an increase in the break-even point.

Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000?

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

Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are: Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in units?

The Keith Company reports the following data.

The Dean Company has sales of $500,000, and the break-even point in sales dollars of $300,000. Determine the company's margin of safety percentage.

The manufacturing cost of Mocha Industries for three months of the year are provided below:

If fixed costs are $450,000 and the unit contribution margin is $50, the sales necessary to earn an operating income of $50,000 are 10,000 units.

The ratio that indicates the percentage of each sales dollar available to cover the fixed costs and to provide operating income is termed the contribution margin ratio.

Given the following cost data, what type of cost is shown?

Given the following cost and activity observations for Taco Company's utilities, use the high-low method to calculate Taco's variable utilities costs per machine hour.

The graph of a variable cost when plotted against its related activity base appears as a:

Which of the following activity bases would be the most appropriate for food costs of a hospital?

Variable costs are costs that vary in total in direct proportion to changes in the activity level.

Copper Hill Inc. manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year. The following partially completed manufacturing cost schedule has been prepared:

Job Order Costing

Process Cost Systems

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Filters

Exam 4: Cost Behavior and Cost-Volume-Profit Analysis

Which of the following is NOT an example of a cost that varies in total as the number of units produced changes?

If the property tax rates are increased, this change in fixed costs will result in a decrease in the break-even point.

The following data are available from the accounting records of Suwanee Co. for the month ended May 31, 2012. 17,000 units were manufactured and sold during the accounting period at a price of $60 per unit. There was no beginning inventories and all units were completed (no work in process).

Global Publishers has collected the following data for recent months: Required: a. Using the high-low method, find variable cost per unit, total fixed costs, and the total cost equation. b. What is the estimated cost for a month in which 19,000 issues are published?

Douglas Company has a contribution margin ratio of 30%. If Douglas has $336,420 in fixed costs, what amount of sales will need to be generated in order for the company to break even?

If yearly insurance premiums are increased, this change in fixed costs will result in an increase in the break-even point.

Variable costs as a percentage of sales for Lemon Inc. are 80%, current sales are $600,000, and fixed costs are $130,000. How much will operating income change if sales increase by $40,000?

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

Carter Co. sells two products, Arks and Bins. Last year Carter sold 14,000 units of Arks and 56,000 units of Bins. Related data are: Assuming that last year's fixed costs totaled $960,000, what was Carter Co.'s break-even point in units?

The Keith Company reports the following data.

The Dean Company has sales of $500,000, and the break-even point in sales dollars of $300,000. Determine the company's margin of safety percentage.

The manufacturing cost of Mocha Industries for three months of the year are provided below:

If fixed costs are $450,000 and the unit contribution margin is $50, the sales necessary to earn an operating income of $50,000 are 10,000 units.

The ratio that indicates the percentage of each sales dollar available to cover the fixed costs and to provide operating income is termed the contribution margin ratio.

Given the following cost data, what type of cost is shown?

Given the following cost and activity observations for Taco Company's utilities, use the high-low method to calculate Taco's variable utilities costs per machine hour.

The graph of a variable cost when plotted against its related activity base appears as a:

Which of the following activity bases would be the most appropriate for food costs of a hospital?

Variable costs are costs that vary in total in direct proportion to changes in the activity level.

Copper Hill Inc. manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year. The following partially completed manufacturing cost schedule has been prepared:

Job Order Costing

Process Cost Systems

Variable Costing for Management Analysis

Budgeting

Performance Evaluation Using Variances From Standard Costs

Performance Evaluation for Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Cost Allocation and Activity-Based Costing

Cost Management for Just-In-Time Environments

Statement of Cash Flows

Financial Statement Analysis

Managerial Accounting Concepts and Principles

Filters