Question 1

As production increases,the fixed cost per unit

Accepted Answer

A)  increases 
B)  decreases 
C)  remains the same 
D)  either increases or decreases,depending on the variable costs 
A)  increases 
B)  decreases 
C)  remains the same 
D)  either increases or decreases,depending on the variable costs

Question 2

Cost-volume-profit analysis cannot be used if which of the following occurs?

Accepted Answer

A)  Costs cannot be properly classified into fixed and variable costs. 
B)  The total fixed costs change. 
C)  The per-unit variable costs change. 
D)  Per-unit sales prices change. 
A)  Costs cannot be properly classified into fixed and variable costs. 
B)  The total fixed costs change. 
C)  The per-unit variable costs change. 
D)  Per-unit sales prices change.

Question 3

Harley Company has sales of $500,000,variable costs are 75% of sales,and operating income is $40,000.What is Harley's operating leverage?

Accepted Answer

A)  0.0 
B)  1.2 
C)  1.3 
D)  3.1 
A)  0.0 
B)  1.2 
C)  1.3 
D)  3.1

Question 4

A company with a break-even point at $900,000 in sales revenue had fixed costs of $225,000.When actual sales were
$1,000,000,variable costs were $750,000.Determine (a)the margin of safety expressed in dollars,(b)the margin of safety
expressed as a percentage of sales,(c)the contribution margin ratio,and (d)the operating income.

Accepted Answer

The answer of A company with a break-even point at...

Question 5

Cordell,Inc.has an operating leverage of 3.Sales are expected to increase by 9% next year.What is the expected change in operating income next year?

Accepted Answer

If sales increase 9% and the o

Question 6

Manley Co.manufactures office furniture.During the most productive month of the year,4,500 desks were manufactured at a total cost of $86,625.In its slowest month,the company made 1,800 desks at a cost of $49,500.Using the high-low method of cost estimation,total fixed costs are

Accepted Answer

A)  $61,875 
B)  $33,875 
C)  $24,750 
D)  cannot be determined from the data given 
A)  $61,875 
B)  $33,875 
C)  $24,750 
D)  cannot be determined from the data given

Question 7

Given the following cost data,what type of cost is shown? ​
​
  ​

Accepted Answer

A)  mixed cost 
B)  variable cost 
C)  fixed cost 
D)  period cost 
A)  mixed cost 
B)  variable cost 
C)  fixed cost 
D)  period cost

Question 8

Costs that vary in total in direct proportion to changes in an activity level are called

Accepted Answer

A)  fixed costs 
B)  sunk costs 
C)  variable costs 
D)  differential costs 
A)  fixed costs 
B)  sunk costs 
C)  variable costs 
D)  differential costs

Question 9

Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio.

Accepted Answer

A) True 
 B)False

Question 10

Copper Hill Inc.manufactures laser printers within a relevant range of production of 70,000 to 100,000 printers per year.The following partially completed manufacturing cost schedule has been prepared:
​
   ​
Complete the preceding cost schedule,identifying each cost by the appropriate letter (a)through (o).

Accepted Answer

The answer of Copper Hill Inc.manufactures laser printers within a...

Question 11

Roller Paint Co.reported the following data for the month of September.There were no beginning inventories and all units were completed (no work in process).
​
   ​
   In the month of September,28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.

Accepted Answer

@#IMG-DLM& (b) ​ @#IMG-DLM& (c) The difference of $14,000 in

Question 12

What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

Accepted Answer

A)  margin of safety ratio 
B)  contribution margin ratio 
C)  costs and expenses ratio 
D)  profit ratio 
A)  margin of safety ratio 
B)  contribution margin ratio 
C)  costs and expenses ratio 
D)  profit ratio

Question 13

Contribution margin is

Accepted Answer

A)  the excess of sales revenue over variable cost 
B)  another term for volume in the "cost-volume-profit" analysis 
C)  profit 
D)  the same as sales revenue 
A)  the excess of sales revenue over variable cost 
B)  another term for volume in the "cost-volume-profit" analysis 
C)  profit 
D)  the same as sales revenue

Question 14

Which of the following is not an assumption underlying cost-volume-profit analysis?

Accepted Answer

A)  The break-even point will be passed during the period. 
B)  Total sales and total costs can be represented by straight lines. 
C)  Costs can be accurately divided into fixed and variable components. 
D)  The sales mix is constant. 
A)  The break-even point will be passed during the period. 
B)  Total sales and total costs can be represented by straight lines. 
C)  Costs can be accurately divided into fixed and variable components. 
D)  The sales mix is constant.

Question 15

If fixed costs are $600,000 and the unit contribution margin is $40,what is the break-even point if fixed costs are increased by $90,000?

Accepted Answer

A)  17,250 
B)  15,000 
C)  8,333 
D)  9,667 
A)  17,250 
B)  15,000 
C)  8,333 
D)  9,667

Question 16

A mixed cost has characteristics of both a variable and a fixed cost.

Accepted Answer

A) True 
 B)False

Question 17

If variable costs per unit decreased because of a decrease in utility rates,the break-even point would

Accepted Answer

A)  decrease 
B)  increase 
C)  remain the same 
D)  increase or decrease,depending upon the percentage increase in utility rates 
A)  decrease 
B)  increase 
C)  remain the same 
D)  increase or decrease,depending upon the percentage increase in utility rates

Question 18

Mia Enterprises sells a product for $90 per unit.The variable cost is $40 per unit,while fixed costs are $75,000.Determine the (a)break-even point in sales units,and (b)break-even point in sales units if the selling price increased to $100 per unit.

Accepted Answer

a.SP $90 - VC $40 = CM $50 per

Question 19

Given the following cost data,what type of cost is shown? ​
  ​

Accepted Answer

A)  mixed cost 
B)  variable cost 
C)  fixed cost 
D)  period cost 
A)  mixed cost 
B)  variable cost 
C)  fixed cost 
D)  period cost

Question 20

Direct materials and direct labor costs are examples of variable costs of production.

Accepted Answer

A) True 
 B)False

Exam 19: Cost-Volume-Profit Analysis

As production increases,the fixed cost per unit

Cost-volume-profit analysis cannot be used if which of the following occurs?

Harley Company has sales of $500,000,variable costs are 75% of sales,and operating income is $40,000.What is Harley's operating leverage?

Cordell,Inc.has an operating leverage of 3.Sales are expected to increase by 9% next year.What is the expected change in operating income next year?

Manley Co.manufactures office furniture.During the most productive month of the year,4,500 desks were manufactured at a total cost of $86,625.In its slowest month,the company made 1,800 desks at a cost of $49,500.Using the high-low method of cost estimation,total fixed costs are

Given the following cost data,what type of cost is shown? ​ ​ ​

Costs that vary in total in direct proportion to changes in an activity level are called

Variable costs as a percentage of sales are equal to 100% minus the contribution margin ratio.

Roller Paint Co.reported the following data for the month of September.There were no beginning inventories and all units were completed (no work in process). ​ ​ In the month of September,28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.

What ratio indicates the percentage of each sales dollar that is available to cover fixed costs and to provide a profit?

Contribution margin is

Which of the following is not an assumption underlying cost-volume-profit analysis?

If fixed costs are $600,000 and the unit contribution margin is $40,what is the break-even point if fixed costs are increased by $90,000?

A mixed cost has characteristics of both a variable and a fixed cost.

If variable costs per unit decreased because of a decrease in utility rates,the break-even point would

Mia Enterprises sells a product for $90 per unit.The variable cost is $40 per unit,while fixed costs are $75,000.Determine the (a)break-even point in sales units,and (b)break-even point in sales units if the selling price increased to $100 per unit.

Given the following cost data,what type of cost is shown? ​ ​

Direct materials and direct labor costs are examples of variable costs of production.

Introduction to Accounting and Business

Analyzing Transactions

The Adjusting Process

Completing the Accounting Cycle

Accounting for Merchandising Businesses

Inventories

Internal Control and Cash

Receivables

Long-Term Assets: Fixed and Intangible

Liabilities: Current,installment Notes,and Contingencies

Liabilities: Bonds Payable

Corporations: Organization, stock Transactions, and Dividends

Statement of Cash Flows

Financial Statement Analysis

Introduction to Managerial Accounting

Job Order Costing

Process Cost Systems

Activity-Based Costing

Variable Costing for Management Analysis

Budgeting

Evaluating Variances From Standard Costs

Evaluating Decentralized Operations

Differential Analysis and Product Pricing

Capital Investment Analysis

Lean Manufacturing and Activity Analysis

Filters

Given the following cost data,what type of cost is shown?

Roller Paint Co.reported the following data for the month of September.There were no beginning inventories and all units were completed (no work in process). In the month of September,28,000 of the 30,000 units manufactured were sold at a price of $80 per unit.

Given the following cost data,what type of cost is shown?