Question 1

Fill in the correct responses for the blanks with letters:

Accepted Answer

A)  (a)very low, (b)many, (c)high, (d)very unique 
B)  (a)very low, (b)few, (c)high, (d)not unique 
C)  (a)very high, (b)few, (c)low, (d)fairly unique 
D)  (a)low, (b)one, (c)high, (d)very unique 
A)  (a)very low, (b)many, (c)high, (d)very unique 
B)  (a)very low, (b)few, (c)high, (d)not unique 
C)  (a)very high, (b)few, (c)low, (d)fairly unique 
D)  (a)low, (b)one, (c)high, (d)very unique

Question 2

Absorption costing is to gross margin as variable costing is to:

Accepted Answer

A)  gross profit 
B)  territory margin 
C)  net income 
D)  contribution margin 
A)  gross profit 
B)  territory margin 
C)  net income 
D)  contribution margin

Question 3

Custom Choppers, Inc. produces two types of motorcycles, a standard model which sells for $5,000, and a customized model which sells for $10,000. Budgeted sales for the year are 300 standard models and 100 customized models. Variable expenses are $1,500 for the standard model and $3,500 for the customized model. Actual sales were 500 standard models at $6,000 and 150 customized models at $12,000.
Calculate:
a. Contribution Margin Variance
b. Budgeted Average Unit Contribution Margin
c. Contribution Margin Volume Variance
Indicate whether Favorable (F) or Unfavorable (U)
SUPPORTING CALCULATIONS:

Accepted Answer

a.
Budgeted Amounts:
 @#IMG-DLM& 
Actual Amounts:

Question 4

Profit-related variances focus on the difference between budgeted and actual prices, volumes, and contribution margin.

Accepted Answer

A) True 
 B)False

Fill in the correct responses for the blanks with letters:

Absorption costing is to gross margin as variable costing is to:

Profit-related variances focus on the difference between budgeted and actual prices, volumes, and contribution margin.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters

Exam 18: Pricing and Profitability Analysis

Fill in the correct responses for the blanks with letters:

Absorption costing is to gross margin as variable costing is to:

Profit-related variances focus on the difference between budgeted and actual prices, volumes, and contribution margin.

Introduction to Cost Management

Basic Cost Management Concepts

Cost Behavior

Activity-Based Costing

Product and Service Costing: Job-Order System

Process Costing

Allocating Costs of Support Departments and Joint Products

Budgeting for Planning and Control Key

Standard Costing: a Functional-Based Control Approach

Decentralization: Responsibility Accounting, Performance Evaluation, and Transfer Pricing

Strategic Cost Management

Activity-Based Management

The Balanced Scorecard: Strategic-Based Control

Quality and Environmental Cost Management

Lean Accounting and Productivity Measurement

Cost-Volume-Profit Analysis

Activity Resource Usage Model and Tactical Decision Making

Capital Investment

Inventory Management: Economic Order Quantity, Jit, and the Theory of Constraints

Filters