Question 1

The relative proportions or combinations of quantities of products that comprise total sales

Accepted Answer

The answer of The relative proportions or combinations of quantities...

Question 2

On the CVP graph, the horizontal difference between the sales line and the total expenses line measures the net income or net loss.

Accepted Answer

A) True 
 B)False

Question 3

A major simplifying assumption of cost-volume-profit analysis is that costs can be classified as either variable or fixed with respect to a single measure of the volume of output activity.

Accepted Answer

A) True 
 B)False

Question 4

An industry that has a high contribution-margin percentage is the airlines.

Accepted Answer

A) True 
 B)False

Question 5

An assumption of the CVP analysis is that the sales mix can fluctuate.

Accepted Answer

A) True 
 B)False

Question 6

The reliability of computer models used in CVP analysis depends on the accuracy of their underlying assumptions about how revenues and costs may actually be affected.

Accepted Answer

A) True 
 B)False

Question 7

fixed expenses + target net income) / unit contribution margin

Accepted Answer

Target sal

Question 8

The horizontal axis of the CVP graph

Accepted Answer

The answer of The horizontal axis of the CVP graph...

Question 9

The horizontal axis on the cost-volume?profit graph is the _____.

Accepted Answer

A) dollars of cost 
B) sales volume in units 
C) dollars of revenue 
D) net income 
A) dollars of cost 
B) sales volume in units 
C) dollars of revenue 
D) net income

Question 10

_____ is the ratio of fixed costs to variable costs.

Accepted Answer

A) Contribution margin 
B) Break-even point 
C) Operating leverage 
D) The margin of safety 
A) Contribution margin 
B) Break-even point 
C) Operating leverage 
D) The margin of safety

Question 11

Knothole Company sells desks at $480 per desk.The costs associated with each desk are as follows: $$\begin{array} { l r } 
\text { Direct materials } & \$ 195 \
\text { Direct labor } & 126 \
\text { Variable factory overhead } & 51
\end{array}$$ Total fixed costs for the period are $456,840.The break-even volume in dollars is _____.

Accepted Answer

A) $456,840 
B) $1,573,560 
C) $2,030,400 
D) none of these answers is correct 
A) $456,840 
B) $1,573,560 
C) $2,030,400 
D) none of these answers is correct

Question 12

Output measures of both resources and activities are _____.

Accepted Answer

A) cost drivers 
B) stages of production 
C) fixed activities 
D) variable activities 
A) cost drivers 
B) stages of production 
C) fixed activities 
D) variable activities

Question 13

General Hospital has total variable costs of 90% of total revenues and fixed costs of $50 million per year.There are 50,000 patient-days estimated for next year.What is the average daily revenue per patient necessary to breakeven?

Accepted Answer

A) $1,000 is the average daily revenue per patient necessary to breakeven. 
B) $4,000 is the average daily revenue per patient necessary to breakeven. 
C) $250 is the average daily revenue per patient necessary to breakeven. 
D) $10,000 is the average daily revenue per patient necessary to breakeven. 
A) $1,000 is the average daily revenue per patient necessary to breakeven. 
B) $4,000 is the average daily revenue per patient necessary to breakeven. 
C) $250 is the average daily revenue per patient necessary to breakeven. 
D) $10,000 is the average daily revenue per patient necessary to breakeven.

Question 14

Which value chain function would include depreciation on transportation cost?

Accepted Answer

A) The distribution function would include depreciation on transportation cost. 
B) The customer service function would include depreciation on transportation cost. 
C) The production function would include depreciation on transportation cost. 
D) The marketing function would include depreciation on transportation cost. 
A) The distribution function would include depreciation on transportation cost. 
B) The customer service function would include depreciation on transportation cost. 
C) The production function would include depreciation on transportation cost. 
D) The marketing function would include depreciation on transportation cost.

Question 15

Total fixed expenses / contribution-margin ratio

Accepted Answer

Break-even

Question 16

The horizontal axis on the CVP graph is the dollars of cost and revenue.

Accepted Answer

A) True 
 B)False

Question 17

_____ is the relative proportions or combinations of quantities of products that comprise total sales.

Accepted Answer

A) Sales mix 
B) Gross margin 
C) Contribution-margin ratio 
D) Variable-cost ratio 
A) Sales mix 
B) Gross margin 
C) Contribution-margin ratio 
D) Variable-cost ratio

Question 18

The range of activity over which the relationship between cost and activity is valid

Accepted Answer

The answer of The range of activity over which the...

Question 19

The break-even point is the level of sales at which revenue equals fixed costs.

Accepted Answer

A) True 
 B)False

Question 20

A cost that does not change in total as the volume increases, assuming the volume is within the relevant range

Accepted Answer

The answer of A cost that does not change in...

The relative proportions or combinations of quantities of products that comprise total sales

On the CVP graph, the horizontal difference between the sales line and the total expenses line measures the net income or net loss.

A major simplifying assumption of cost-volume-profit analysis is that costs can be classified as either variable or fixed with respect to a single measure of the volume of output activity.

An industry that has a high contribution-margin percentage is the airlines.

An assumption of the CVP analysis is that the sales mix can fluctuate.

The reliability of computer models used in CVP analysis depends on the accuracy of their underlying assumptions about how revenues and costs may actually be affected.

fixed expenses + target net income) / unit contribution margin

The horizontal axis of the CVP graph

The horizontal axis on the cost-volume?profit graph is the _____.

_____ is the ratio of fixed costs to variable costs.

Knothole Company sells desks at $480 per desk.The costs associated with each desk are as follows: Direct materials \ 195 Direct labor 126 Variable factory overhead 51 Total fixed costs for the period are $456,840.The break-even volume in dollars is _____.

Output measures of both resources and activities are _____.

General Hospital has total variable costs of 90% of total revenues and fixed costs of $50 million per year.There are 50,000 patient-days estimated for next year.What is the average daily revenue per patient necessary to breakeven?

Which value chain function would include depreciation on transportation cost?

Total fixed expenses / contribution-margin ratio

The horizontal axis on the CVP graph is the dollars of cost and revenue.

_____ is the relative proportions or combinations of quantities of products that comprise total sales.

The range of activity over which the relationship between cost and activity is valid

The break-even point is the level of sales at which revenue equals fixed costs.

A cost that does not change in total as the volume increases, assuming the volume is within the relevant range

Managerial Accounting, the Business Organization, and Professional Ethics

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters

Exam 2: Introduction to Cost Behavior and Cost-Volume Relationships

The relative proportions or combinations of quantities of products that comprise total sales

On the CVP graph, the horizontal difference between the sales line and the total expenses line measures the net income or net loss.

A major simplifying assumption of cost-volume-profit analysis is that costs can be classified as either variable or fixed with respect to a single measure of the volume of output activity.

An industry that has a high contribution-margin percentage is the airlines.

An assumption of the CVP analysis is that the sales mix can fluctuate.

The reliability of computer models used in CVP analysis depends on the accuracy of their underlying assumptions about how revenues and costs may actually be affected.

fixed expenses + target net income) / unit contribution margin

The horizontal axis of the CVP graph

The horizontal axis on the cost-volume?profit graph is the _____.

_____ is the ratio of fixed costs to variable costs.

Knothole Company sells desks at $480 per desk.The costs associated with each desk are as follows: Direct materials \ 195 Direct labor 126 Variable factory overhead 51 Total fixed costs for the period are $456,840.The break-even volume in dollars is _____.

Output measures of both resources and activities are _____.

General Hospital has total variable costs of 90% of total revenues and fixed costs of $50 million per year.There are 50,000 patient-days estimated for next year.What is the average daily revenue per patient necessary to breakeven?

Which value chain function would include depreciation on transportation cost?

Total fixed expenses / contribution-margin ratio

The horizontal axis on the CVP graph is the dollars of cost and revenue.

_____ is the relative proportions or combinations of quantities of products that comprise total sales.

The range of activity over which the relationship between cost and activity is valid

The break-even point is the level of sales at which revenue equals fixed costs.

A cost that does not change in total as the volume increases, assuming the volume is within the relevant range

Managerial Accounting, the Business Organization, and Professional Ethics

Measurement of Cost Behavior

Cost Management Systems and an Introduction to Activity-Based Costing

Relevant Information and Decision Making With a Focus on Pricing Decisions

Relevant Information and Decision Making: Operational Decisions

Introduction to Budgets and Preparing the Master Budget

Flexible Budgets and Variance Analysis

Management Control Systems and Responsibility Accounting

Management Control in Decentralized Organizations

Capital Budgeting

Cost Allocation

Accounting for Overhead Costs

Job-Costing and Process-Costing Systems

Basic Accounting: Concepts, Techniques, and Conventions

Understanding Corporate Annual Reports: Basic Financial Statements

Understanding and Analyzing Consolidated Financial Statements

Filters