Question 1

Increased sales of high contribution margin products increase the break-even point.

Accepted Answer

A) True 
 B)False

Question 2

The __________ is where total revenues equal total costs.

Accepted Answer

break-e ve

Question 3

Figure 16 - 1 The Cumberland Company provides the following information:
  Refer to Figure 16-1. What is the break-even point in sales dollars for Cumberland?

Accepted Answer

A)  $125,000 
B)  $100,000 
C)  $37,500 
D)  $300,000 
A)  $125,000 
B)  $100,000 
C)  $37,500 
D)  $300,000

Question 4

Assuming all other things are equal, if there was a decrease in the break-even point, fixed costs must have:

Accepted Answer

A)  decreased 
B)  increased first, then decreased 
C)  increased 
D)  remained the same 
A)  decreased 
B)  increased first, then decreased 
C)  increased 
D)  remained the same

Question 5

In multiple-product analysis, direct fixed costs can be __________ to each segment.

Accepted Answer

The answer of In multiple-product analysis, direct fixed costs can...

Question 6

The Mildmanner Corporation has the following data for 2014:   The margin of safety in units will be (round to the nearest whole unit)

Accepted Answer

A)  667. 
B)  2,500. 
C)  4,000. 
D)  7,500. 
A)  667. 
B)  2,500. 
C)  4,000. 
D)  7,500.

Question 7

The Mildmanner Corporation has the following data for 2014:   If sales decrease to 7,500 units in 2015, Mildmanner's operating leverage will be

Accepted Answer

A)  0.25. 
B)  2.00. 
C)  4.00. 
D)  undefined. 
A)  0.25. 
B)  2.00. 
C)  4.00. 
D)  undefined.

Question 8

Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in units for Biscuit Company?

Accepted Answer

A)  250 units 
B)  3,600 units 
C)  375 units 
D)  2,400 units 
A)  250 units 
B)  3,600 units 
C)  375 units 
D)  2,400 units

Question 9

The Old Towne Manufacturing Company produces the following three products:
   Fixed costs are $76,000 per year.
Fifty percent of all sales in units are Saws, 30 percent are Knives, and 20 percent are Measuring Tapes..
Required:
Calculate the following values:

Accepted Answer

The answer of The Old Towne Manufacturing Company produces the...

Question 10

In a cost-volume-profit graph, the slope of the total revenue line represents

Accepted Answer

A)  the selling price per unit. 
B)  the contribution margin per unit. 
C)  the variable cost per unit. 
D)  total contribution margin. 
A)  the selling price per unit. 
B)  the contribution margin per unit. 
C)  the variable cost per unit. 
D)  total contribution margin.

Question 11

Assuming all other things are the same, if there was an increase in the break-even point variable cost per unit must have:

Accepted Answer

A)  increased first, then decreased 
B)  increased 
C)  remained the same 
D)  depends on the circumstances 
A)  increased first, then decreased 
B)  increased 
C)  remained the same 
D)  depends on the circumstances

Question 12

At a price of $48, the estimated monthly sales of a product are 18,000 units. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month.
Required:
Determine each of the following values:

Accepted Answer

The answer of At a price of $48, the estimated...

Question 13

In cost-volume-profit analysis income taxes __________ the break even point.

Accepted Answer

The answer of In cost-volume-profit analysis income taxes __________ the...

Question 14

Figure 16 - 1 The Cumberland Company provides the following information:
  Refer to Figure 16-1. What is the variable cost per unit for Cumberland?

Accepted Answer

A)  $1.25 
B)  $0.85 
C)  $0.40 
D)  $0.75 
A)  $1.25 
B)  $0.85 
C)  $0.40 
D)  $0.75

Question 15

In 2014, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. Samantha's 2014 break-even sales volume was

Accepted Answer

A)  $36,000. 
B)  $54,000. 
C)  $49,500. 
D)  $37,500. 
A)  $36,000. 
B)  $54,000. 
C)  $49,500. 
D)  $37,500.

Question 16

In a cost-volume-profit graph, the total revenue line rises with a slope equal to

Accepted Answer

A)  the selling price. 
B)  the contribution margin. 
C)  the variable cost per unit. 
D)  none of the above. 
A)  the selling price. 
B)  the contribution margin. 
C)  the variable cost per unit. 
D)  none of the above.

Question 17

Assume the following information:   What volume of sales dollars is needed to break even?

Accepted Answer

A)  $75,000 
B)  $300,000 
C)  $48,000 
D)  $12,000 
A)  $75,000 
B)  $300,000 
C)  $48,000 
D)  $12,000

Question 18

Figure 16 - 1 The Cumberland Company provides the following information:
  Refer to Figure 16-1. What is the contribution margin ratio for Cumberland?

Accepted Answer

A)  0.16 
B)  0.76 
C)  0.50 
D)  0.34 
A)  0.16 
B)  0.76 
C)  0.50 
D)  0.34

Increased sales of high contribution margin products increase the break-even point.

The __________ is where total revenues equal total costs.

Figure 16 - 1 The Cumberland Company provides the following information: Refer to Figure 16-1. What is the break-even point in sales dollars for Cumberland?

Assuming all other things are equal, if there was a decrease in the break-even point, fixed costs must have:

In multiple-product analysis, direct fixed costs can be __________ to each segment.

The Mildmanner Corporation has the following data for 2014: The margin of safety in units will be (round to the nearest whole unit)

The Mildmanner Corporation has the following data for 2014: If sales decrease to 7,500 units in 2015, Mildmanner's operating leverage will be

Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in units for Biscuit Company?

The Old Towne Manufacturing Company produces the following three products: Fixed costs are $76,000 per year. Fifty percent of all sales in units are Saws, 30 percent are Knives, and 20 percent are Measuring Tapes.. Required: Calculate the following values:

In a cost-volume-profit graph, the slope of the total revenue line represents

Assuming all other things are the same, if there was an increase in the break-even point variable cost per unit must have:

At a price of $48, the estimated monthly sales of a product are 18,000 units. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month. Required: Determine each of the following values:

In cost-volume-profit analysis income taxes __________ the break even point.

Figure 16 - 1 The Cumberland Company provides the following information: Refer to Figure 16-1. What is the variable cost per unit for Cumberland?

In 2014, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. Samantha's 2014 break-even sales volume was

In a cost-volume-profit graph, the total revenue line rises with a slope equal to

Assume the following information: What volume of sales dollars is needed to break even?

Figure 16 - 1 The Cumberland Company provides the following information: Refer to Figure 16-1. What is the contribution margin ratio for Cumberland?

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

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

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

Filters

Exam 16: Cost-Volume-Profit Analysis

Increased sales of high contribution margin products increase the break-even point.

The __________ is where total revenues equal total costs.

Figure 16 - 1 The Cumberland Company provides the following information: Refer to Figure 16-1. What is the break-even point in sales dollars for Cumberland?

Assuming all other things are equal, if there was a decrease in the break-even point, fixed costs must have:

In multiple-product analysis, direct fixed costs can be __________ to each segment.

The Mildmanner Corporation has the following data for 2014: The margin of safety in units will be (round to the nearest whole unit)

The Mildmanner Corporation has the following data for 2014: If sales decrease to 7,500 units in 2015, Mildmanner's operating leverage will be

Biscuit Company sells its product for $50. In addition, it has a variable cost ratio of 45 percent and total fixed costs of $6,875. What is the break-even point in units for Biscuit Company?

The Old Towne Manufacturing Company produces the following three products: Fixed costs are $76,000 per year. Fifty percent of all sales in units are Saws, 30 percent are Knives, and 20 percent are Measuring Tapes.. Required: Calculate the following values:

In a cost-volume-profit graph, the slope of the total revenue line represents

Assuming all other things are the same, if there was an increase in the break-even point variable cost per unit must have:

At a price of $48, the estimated monthly sales of a product are 18,000 units. Variable costs include manufacturing costs of $27 and distribution costs of $9. Fixed costs are $60,000 per month. Required: Determine each of the following values:

In cost-volume-profit analysis income taxes __________ the break even point.

Figure 16 - 1 The Cumberland Company provides the following information: Refer to Figure 16-1. What is the variable cost per unit for Cumberland?

In 2014, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. Samantha's 2014 break-even sales volume was

In a cost-volume-profit graph, the total revenue line rises with a slope equal to

Assume the following information: What volume of sales dollars is needed to break even?

Figure 16 - 1 The Cumberland Company provides the following information: Refer to Figure 16-1. What is the contribution margin ratio for Cumberland?

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

Activity Resource Usage Model and Tactical Decision Making

Pricing and Profitability Analysis

Capital Investment

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

Filters