Question 1

Triangle Associates is contemplating making a large charitable contribution. If their tax rate is 40%, what is the after-tax cost of making a $150,000 contribution?

Accepted Answer

A)  $210,000 
B)  $ 60,000 
C)  $150,000 
D)  $ 90,000 
A)  $210,000 
B)  $ 60,000 
C)  $150,000 
D)  $ 90,000

Question 2

Assuming that the number of units produced is less than the number of units sold, which of the following statements is true when comparing net operating income using absorption and variable costing?

Accepted Answer

A)  Absorption costing will yield a higher net operating income. 
B)  Variable costing will yield a higher net operating income. 
C)  Net operating income will be the same under both methods. 
D)  The sales price per unit will be less using absorption costing. 
A)  Absorption costing will yield a higher net operating income. 
B)  Variable costing will yield a higher net operating income. 
C)  Net operating income will be the same under both methods. 
D)  The sales price per unit will be less using absorption costing.

Question 3

A manager is considering a special project that will increase cash sales by $80,000 and increase costs by $30,000. All cash receipts are taxable and all costs are tax deductible. If the tax rate is 30%, what will be the after-tax profit from the special project?

Accepted Answer

After-tax profit wil

Triangle Associates is contemplating making a large charitable contribution. If their tax rate is 40%, what is the after-tax cost of making a $150,000 contribution?

Assuming that the number of units produced is less than the number of units sold, which of the following statements is true when comparing net operating income using absorption and variable costing?

A manager is considering a special project that will increase cash sales by $80,000 and increase costs by $30,000. All cash receipts are taxable and all costs are tax deductible. If the tax rate is 30%, what will be the after-tax profit from the special project?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

Job Costing, Process Costing, and Operations Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investment Decisions

The Use of Budgets in Planning and Decision Making

Variance Analysis A Tool for Cost Control and Performance Evaluation

Decentralization, Performance Evaluation, and the Balanced Scorecard

Financial Statement Analysis

The Statement of Cash Flows

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Exam 5: Cost Behavior

Triangle Associates is contemplating making a large charitable contribution. If their tax rate is 40%, what is the after-tax cost of making a $150,000 contribution?

Assuming that the number of units produced is less than the number of units sold, which of the following statements is true when comparing net operating income using absorption and variable costing?

A manager is considering a special project that will increase cash sales by $80,000 and increase costs by $30,000. All cash receipts are taxable and all costs are tax deductible. If the tax rate is 30%, what will be the after-tax profit from the special project?

Introduction to Managerial Accounting

Product Costing: Manufacturing Processes, Cost Terminology, and Cost Flows

Job Costing, Process Costing, and Operations Costing

Activity-Based Costing

Cost-Volume-Profit Analysis

Relevant Costs and Product Planning Decisions

Long-Term Capital Investment Decisions

The Use of Budgets in Planning and Decision Making

Variance Analysis A Tool for Cost Control and Performance Evaluation

Decentralization, Performance Evaluation, and the Balanced Scorecard

Financial Statement Analysis

The Statement of Cash Flows

Filters