The following information is available for Adam Ltd $\begin{array}{|l|r|r|r|} \hline &{\text { Budget }} &{\text { Actual }} &{\text { Variance }} \\ \hline \text { Sales units } & 7,500 & 8,000 & 500 \mathrm{~F} \\ \hline \text { Sales dollars } & \$ 375,000 & \$ 376,000 & \$ 1000 \mathrm{~F} \\ \hline \text { Variable Expenses } & \$ 262,500 & \$ 296,000 & \$ 33,500 \mathrm{U} \\ \hline \text { Contribution margin } & \$ 112,500 & \$ 80,000 & \$ 35,000 \mathrm{U} \\ \hline \end{array}$ The variable expense variance is:

A) $22,000 U B) $33,500 U C) $16,000 U D) $22,500 F A) $22,000 U B) $33,500 U C) $16,000 U D) $22,500 F C

Beachcomber Ltd produces and sells two models of surf boards: \[\begin{array} { l c c } & \text { Standard } & \text { Super } \\ \text { Selling price } & \$ 100 & \$ 280 \\ \text { Variable costs } & 80 & 140 \end{array}\] Total fixed costs are $180 000 and the company sells 5 Standards models for every Super model.What quantity of the Super model will be sold at break-even point?

A) 750 B) 2250 C) 3750 D) 4500 A) 750 B) 2250 C) 3750 D) 4500

Yamhill Marketing purchases novelty gift items from a wholesaler at a cost of $2 each and sells them at retail for $5 each.Yamhill's monthly expenses are as follows: \[\begin{array} { l r } \text { Rent } & \$ 375 + 5 \% \text { of sales } \\ \text { Sales commissions } & 10 \% \text { of sales } \\ \text { Utilities } & \$ 115 \text { per month } \\ \text { Depreciation on equipment } & \$ 200 \text { per month } \end{array}\] If 400 units are sold during January what is Yamhill's total contribution margin for the month?

A) $300 B) $900 C) $1000 D) $800 A) $300 B) $900 C) $1000 D) $800

Exam 11: Cost-Volume-Profit Analysis for Decision Making

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The following information is available for Adam Ltd Budget Actual Variance Sales units 7,500 8,000 500 Sales dollars \ 375,000 \ 376,000 \ 1000 Variable Expenses \ 262,500 \ 296,000 \ 33,500 Contribution margin \ 112,500 \ 80,000 \ 35,000 The variable expense variance is:

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(Multiple Choice)

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Question 1

Correct Answer:

Verified

What will be the effect on the breakeven point if advertising is increased?

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(Multiple Choice)

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Question 2

Correct Answer:

Verified

On a per unit basis,a variable cost will:

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(Multiple Choice)

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Question 3

Correct Answer:

Verified

In terms of cost behaviour,telephone expense and direct materials are classified as:

(Multiple Choice)

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Question 4

In a cost-volume-profit graph the break-even point will be found:

(Multiple Choice)

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Question 5

The contribution margin approach to the income statement makes a primary classification of expenses according to cost b_________.

(Short Answer)

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Question 6

Product X sells for $20 per unit and has a contribution margin rate of 40 percent.Fixed expenses total $120 000 annually.How many units of Product X must be sold to yield a profit of $30 000?

(Multiple Choice)

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Question 7

The r___________ range is the range of activity within which a firm normally operates.

(Short Answer)

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Question 8

Beachcomber Ltd produces and sells two models of surf boards: Standard Super Selling price \ 100 \ 280 Variable costs 80 140 Total fixed costs are $180 000 and the company sells 5 Standards models for every Super model.What quantity of the Super model will be sold at break-even point?

(Multiple Choice)

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Question 9

The horizontal axis of the cost-volume-profit chart represents u_________.

(Short Answer)

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Question 10

Contribution margin is:

(Multiple Choice)

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Question 11

Which statement relating to the visual fit of a scatter diagram technique is not true?

(Multiple Choice)

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Question 12

Suppose the break-even point for revenue for Knitwear Inc.is $1,000,000.Fixed costs are $400,000.Compute the contribution margin percentage.

(Multiple Choice)

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Question 13

It is not an assumption of cost-volume-profit analysis that:

(Multiple Choice)

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Question 14

Contribution margin can be calculated as:

(Multiple Choice)

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Question 15

Yamhill Marketing purchases novelty gift items from a wholesaler at a cost of $2 each and sells them at retail for $5 each.Yamhill's monthly expenses are as follows: Rent \ 375+5\% of sales Sales commissions 10\% of sales Utilities \ 115 per month Depreciation on equipment \ 200 per month If 400 units are sold during January what is Yamhill's total contribution margin for the month?

(Multiple Choice)

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Question 16

Which statement relating to margin of safety is not true?

(Multiple Choice)

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Question 17

The difference between actual and planned results is known as a v__________.

(Short Answer)

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Question 18

Which question can cost-volume-profit analysis not assist in answering?

(Multiple Choice)

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Question 19

A m__________ cost contains both fixed and variable components.

(Short Answer)

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Question 20

Showing 1 - 20 of 42

Exam 11: Cost-Volume-Profit Analysis for Decision Making

The following information is available for Adam Ltd Budget Actual Variance Sales units 7,500 8,000 500 Sales dollars \ 375,000 \ 376,000 \ 1000 Variable Expenses \ 262,500 \ 296,000 \ 33,500 Contribution margin \ 112,500 \ 80,000 \ 35,000 The variable expense variance is:

What will be the effect on the breakeven point if advertising is increased?

On a per unit basis,a variable cost will:

In terms of cost behaviour,telephone expense and direct materials are classified as:

In a cost-volume-profit graph the break-even point will be found:

The contribution margin approach to the income statement makes a primary classification of expenses according to cost b_________.

Product X sells for $20 per unit and has a contribution margin rate of 40 percent.Fixed expenses total $120 000 annually.How many units of Product X must be sold to yield a profit of $30 000?

The r___________ range is the range of activity within which a firm normally operates.

Beachcomber Ltd produces and sells two models of surf boards: Standard Super Selling price \ 100 \ 280 Variable costs 80 140 Total fixed costs are $180 000 and the company sells 5 Standards models for every Super model.What quantity of the Super model will be sold at break-even point?

The horizontal axis of the cost-volume-profit chart represents u_________.

Contribution margin is:

Which statement relating to the visual fit of a scatter diagram technique is not true?

Suppose the break-even point for revenue for Knitwear Inc.is $1,000,000.Fixed costs are $400,000.Compute the contribution margin percentage.

It is not an assumption of cost-volume-profit analysis that:

Contribution margin can be calculated as:

Which statement relating to margin of safety is not true?

The difference between actual and planned results is known as a v__________.

Which question can cost-volume-profit analysis not assist in answering?

A m__________ cost contains both fixed and variable components.

Decision Making and the Role of Accounting

Financial Statements for Decision Making

Recording Transactions

Adjusting the Accounts and Preparing Financial Statements

Completing the Accounting Cycle

Accounting for Retailing

Accounting for Systems

Accounting for Manufacturing

Cost Accounting Systems

Cash Management and Internal Control

Budgeting for Planning and Control

Performance Evaluation for Managers

Differential Analysis,profitability Analysis and Capital Budgeting

Partnerships: Formation,operation and Reporting

Companies: Formation and Operations

Regulation and the Conceptual Framework

Receivables

Inventories

Non-Current Assets: Acquisition and Depreciation

Non-Current Assets: Revaluation,disposal and Other Aspects

Liabilities

Presentation of Financial Statements

Liabilities

Analysis and Interpretation of Financial Statements

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