Question 1

As the cost-driver activity level increases within the relevant range _____.

Accepted Answer

A) total fixed costs increase 
B) fixed costs per unit decrease 
C) total variable costs decrease 
D) variable costs per unit decrease 
A) total fixed costs increase 
B) fixed costs per unit decrease 
C) total variable costs decrease 
D) variable costs per unit decrease

Question 2

As sales exceed the break?even point, a high contribution?margin percentage _____.

Accepted Answer

A) increases profits faster than does a low contribution?margin percentage 
B) increases profits at the same rate as a low contribution?margin percentage 
C) decreases profits at the same rate as a low contribution?margin percentage 
D) increases profits slower than does a low contribution?margin percentage 
A) increases profits faster than does a low contribution?margin percentage 
B) increases profits at the same rate as a low contribution?margin percentage 
C) decreases profits at the same rate as a low contribution?margin percentage 
D) increases profits slower than does a low contribution?margin percentage

Question 3

Due to limited resources, sales of every type of product cannot be maximized.

Accepted Answer

A) True 
 B)False

Question 4

Sales volume of a given product helps guide executives who must decide to emphasize or deemphasize particular products.

Accepted Answer

A) True 
 B)False

Question 5

Small increases in profits occur for high contribution-margin ratio companies when sales grow.

Accepted Answer

A) True 
 B)False

Question 6

Manufacturers of industrial equipment have high contribution-margin percentages.

Accepted Answer

A) True 
 B)False

Question 7

The cost of the merchandise that a company acquires or produces and then sells

Accepted Answer

The answer of The cost of the merchandise that a...

Question 8

A small margin of safety may indicate a risky situation.

Accepted Answer

A) True 
 B)False

Question 9

The study of the effects of output volume on sales, costs, and profit

Accepted Answer

Cost-volum

Question 10

Which of the following would be a good cost driver for salaries of product and supervisory salaries?

Accepted Answer

A) Number of hours worked is a good cost driver for salaries of product and supervisory salaries. 
B) Number of people supervised is a good cost driver for salaries of product and supervisory salaries. 
C) Number of department transactions is a good cost driver for salaries of product and supervisory salaries. 
D) Number of customers served is a good cost driver for salaries of product and supervisory salaries. 
A) Number of hours worked is a good cost driver for salaries of product and supervisory salaries. 
B) Number of people supervised is a good cost driver for salaries of product and supervisory salaries. 
C) Number of department transactions is a good cost driver for salaries of product and supervisory salaries. 
D) Number of customers served is a good cost driver for salaries of product and supervisory salaries.

Question 11

Hug Me Company produces dolls.Each doll sells for $20.00.Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor.If total fixed costs are $435,000, then the break?even point is _____.

Accepted Answer

A) 21,750 dolls 
B) 31,071 dolls 
C) 51,176 dolls 
D) 72,500 dolls 
A) 21,750 dolls 
B) 31,071 dolls 
C) 51,176 dolls 
D) 72,500 dolls

Question 12

If the proportions in a sales mix change, the _____.

Accepted Answer

A) contribution margin per unit increases 
B) break-even point will remain the same 
C) cost-volume-profit relationship also changes 
D) net income will not be altered 
A) contribution margin per unit increases 
B) break-even point will remain the same 
C) cost-volume-profit relationship also changes 
D) net income will not be altered

Question 13

Given a break?even point of 88,000 units and a contribution margin per unit of $9.60, the total number of units that must be sold to reach a net pre-tax profit of $18,096 is _____.

Accepted Answer

A) 89,885 units 
B) 88,000 units 
C) 1,885 units 
D) indeterminable 
A) 89,885 units 
B) 88,000 units 
C) 1,885 units 
D) indeterminable

Question 14

Which value chain function would include depreciation of plant and machinery?

Accepted Answer

A) The distribution function would include depreciation of plant and machinery. 
B) The customer service function would include depreciation of plant and machinery. 
C) The production function would include depreciation of plant and machinery. 
D) The marketing function would include depreciation of plant and machinery. 
A) The distribution function would include depreciation of plant and machinery. 
B) The customer service function would include depreciation of plant and machinery. 
C) The production function would include depreciation of plant and machinery. 
D) The marketing function would include depreciation of plant and machinery.

Question 15

The cost of advertisements is part of this value-chain function

Accepted Answer

The answer of The cost of advertisements is part of...

As the cost-driver activity level increases within the relevant range _____.

As sales exceed the break?even point, a high contribution?margin percentage _____.

Due to limited resources, sales of every type of product cannot be maximized.

Sales volume of a given product helps guide executives who must decide to emphasize or deemphasize particular products.

Small increases in profits occur for high contribution-margin ratio companies when sales grow.

Manufacturers of industrial equipment have high contribution-margin percentages.

The cost of the merchandise that a company acquires or produces and then sells

A small margin of safety may indicate a risky situation.

The study of the effects of output volume on sales, costs, and profit

Which of the following would be a good cost driver for salaries of product and supervisory salaries?

Hug Me Company produces dolls.Each doll sells for $20.00.Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor.If total fixed costs are $435,000, then the break?even point is _____.

If the proportions in a sales mix change, the _____.

Given a break?even point of 88,000 units and a contribution margin per unit of $9.60, the total number of units that must be sold to reach a net pre-tax profit of $18,096 is _____.

Which value chain function would include depreciation of plant and machinery?

The cost of advertisements is part of this value-chain function

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

As the cost-driver activity level increases within the relevant range _____.

As sales exceed the break?even point, a high contribution?margin percentage _____.

Due to limited resources, sales of every type of product cannot be maximized.

Sales volume of a given product helps guide executives who must decide to emphasize or deemphasize particular products.

Small increases in profits occur for high contribution-margin ratio companies when sales grow.

Manufacturers of industrial equipment have high contribution-margin percentages.

The cost of the merchandise that a company acquires or produces and then sells

A small margin of safety may indicate a risky situation.

The study of the effects of output volume on sales, costs, and profit

Which of the following would be a good cost driver for salaries of product and supervisory salaries?

Hug Me Company produces dolls.Each doll sells for $20.00.Variable costs per unit total $14.00, of which $6.25 is for direct materials and $5.25 is for direct labor.If total fixed costs are $435,000, then the break?even point is _____.

If the proportions in a sales mix change, the _____.

Given a break?even point of 88,000 units and a contribution margin per unit of $9.60, the total number of units that must be sold to reach a net pre-tax profit of $18,096 is _____.

Which value chain function would include depreciation of plant and machinery?

The cost of advertisements is part of this value-chain function

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