Frazier Manufacturing Company collected the following production data for the past month: \[\begin{array} { c r } \text { Units Produced } & \text { Total Cost } \\ \hline 1,600 & \$ 66,000 \\ 1,300 & 57,000 \\ 1,500 & 67,500 \\ 1,100 & 49,500 \end{array}\] If the high-low method is used what is the monthly total cost equation?

A) Total cost = $13200 + $33/unit B) Total cost = $16500 + $30/unit C) Total cost = $0 + $45/unit D) Total cost = $9900 + $36/unit A) Total cost = $13200 + $33/unit B) Total cost = $16500 + $30/unit C) Total cost = $0 + $45/unit D) Total cost = $9900 + $36/unit

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit.Additional information follows: \[\begin{array} { l c c } \text { Month } & \text { Units produced } & \text { Total costs } \\ \hline \text { June } & 2,000 & \$ 32,000 \\ \text { July } & 1,000 & 20,000 \end{array}\] If Ponszko's produces 2300 units in August how much is its total cost expected to be?

A) $8000 B) $39600 C) $27600 D) $35600 A) $8000 B) $39600 C) $27600 D) $35600

Two costs at Bradshaw Company appear below for specific months of operation. \[\begin{array} { l l r c } & \text { Month } & \text { Amount } & \text { Units Produced } \\ \text { Delivery costs } & \text { September } & \$ 40,000 & 40,000 \\ & \text { October } & 55,000 & 60,000 \\ \text { Utilities } & \text { September } & \$ 84,000 & 40,000 \\ & \text { October } & 126,000 & 60,000 \end{array}\] Which type of costs are these?

A) Delivery costs and utilities are both variable. B) Delivery costs and utilities are both mixed. C) Utilities are mixed and delivery costs are variable. D) Delivery costs are mixed and utilities are variable. A) Delivery costs and utilities are both variable. B) Delivery costs and utilities are both mixed. C) Utilities are mixed and delivery costs are variable. D) Delivery costs are mixed and utilities are variable.

Exam 12: Budgetary Planning

Frazier Manufacturing Company collected the following production data for the past month: Units Produced Total Cost 1,600 \ 66,000 1,300 57,000 1,500 67,500 1,100 49,500 If the high-low method is used what is the monthly total cost equation?

(Multiple Choice)

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Question 21

A fixed cost remains constant in total and on a per unit basis at various levels of activity.

(True/False)

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Question 22

Which of the following is not a cost classification?

(Multiple Choice)

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Question 23

The break-even point cannot be determined by

(Multiple Choice)

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Question 24

Which one of the following is a name for the range over which a company expects to operate?

(Multiple Choice)

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Question 25

In CVP analysis the term "cost" includes manufacturing costs and selling and administrative expenses.

(True/False)

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Question 26

Cost activity indexes might help classify costs as

(Multiple Choice)

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Question 27

The difference between the costs at the high and low levels of activity represents the fixed cost element of a mixed cost.

(True/False)

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Question 28

Changes in the level of activity will cause unit variable and unit fixed costs to change in opposite directions.

(True/False)

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Question 29

Greg's Golf Carts produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sales of 350 units with a contribution margin of $50 each.If sales of Model 26 increase by 100 units how much will profit change?

(Multiple Choice)

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Question 30

The relevant range of activity refers to the

(Multiple Choice)

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Question 31

A cost-volume-profit graph shows the amount of net income or loss at each level of sales.

(True/False)

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Question 32

The break-even point is where

(Multiple Choice)

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Question 33

Cost-volume-profit analysis includes all of the following assumptions except

(Multiple Choice)

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Question 34

Which of the following is not a plausible explanation of why variable costs often behave in a curvilinear fashion?

(Multiple Choice)

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Question 35

Kaplan Inc.produces flash drives for computers which it sells for $27 each.The variable cost to make each flash drive is $13.During April 700 drives were sold.Fixed costs for April were $2 per unit for a total of $1400 for the month.How much is the monthly break-even level of sales in dollars for Kaplan?

(Multiple Choice)

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Question 36

Cunningham Inc.sells MP3 players for $60 each.Variable costs are $40 per unit and fixed costs total $120000.What sales are needed by Cunningham to break even?

(Multiple Choice)

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Question 37

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit.Additional information follows: Month Units produced Total costs June 2,000 \ 32,000 July 1,000 20,000 If Ponszko's produces 2300 units in August how much is its total cost expected to be?

(Multiple Choice)

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Question 38

A CVP income statement shows contribution margin instead of gross profit.

(True/False)

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Question 39

Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs September \ 40,000 40,000 October 55,000 60,000 Utilities September \ 84,000 40,000 October 126,000 60,000 Which type of costs are these?

(Multiple Choice)

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Question 40

Frazier Manufacturing Company collected the following production data for the past month: Units Produced Total Cost 1,600 \ 66,000 1,300 57,000 1,500 67,500 1,100 49,500 If the high-low method is used what is the monthly total cost equation?

A fixed cost remains constant in total and on a per unit basis at various levels of activity.

Which of the following is not a cost classification?

The break-even point cannot be determined by

Which one of the following is a name for the range over which a company expects to operate?

In CVP analysis the term "cost" includes manufacturing costs and selling and administrative expenses.

Cost activity indexes might help classify costs as

The difference between the costs at the high and low levels of activity represents the fixed cost element of a mixed cost.

Changes in the level of activity will cause unit variable and unit fixed costs to change in opposite directions.

Greg's Golf Carts produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sales of 350 units with a contribution margin of $50 each.If sales of Model 26 increase by 100 units how much will profit change?

The relevant range of activity refers to the

A cost-volume-profit graph shows the amount of net income or loss at each level of sales.

The break-even point is where

Cost-volume-profit analysis includes all of the following assumptions except

Which of the following is not a plausible explanation of why variable costs often behave in a curvilinear fashion?

Cunningham Inc.sells MP3 players for $60 each.Variable costs are $40 per unit and fixed costs total $120000.What sales are needed by Cunningham to break even?

Ponszko Nursery used high-low data from June and July to determine its variable cost of $12 per unit.Additional information follows: Month Units produced Total costs June 2,000 \ 32,000 July 1,000 20,000 If Ponszko's produces 2300 units in August how much is its total cost expected to be?

A CVP income statement shows contribution margin instead of gross profit.

Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs September \ 40,000 40,000 October 55,000 60,000 Utilities September \ 84,000 40,000 October 126,000 60,000 Which type of costs are these?

Introduction to Financial Statements

A Further Look at Financial Statements

The Accounting Information System

Accrual Accounting Concepts

Fraud, Internal Control, and Cash

Reporting and Analyzing Long-Lived Assets

Reporting and Analyzing Liabilities and Stockholders Equity

Financial Analysis: the Big Picture

Managerial Accounting

Cost-Volume-Profit

Incremental Analysis

Budgetary Control and Responsibility Accounting

Standard Costs and Balanced Scorecard

Planning for Capital Investments

Activity Based Costing

Cost-Volume Profit Analysis: Additional Issues

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