Question 1

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 2

Symbiosis Company had the following information:   Suppose Symbiosis could reduce setup costs by $500 per setup and could reduce the number of engineering hours
Needed to 1,216.66 hours. How many units must be sold to break even in this case?

Accepted Answer

A)  30,000 units 
B)  25,050 units 
C)  11,250 units 
D)  25,650 units 
A)  30,000 units 
B)  25,050 units 
C)  11,250 units 
D)  25,650 units

Question 3

Under ABC, cost drivers are separated into unit-based and non-unit-based drivers.

Accepted Answer

A) True 
 B)False

Question 4

The following diagram is a cost-volume-profit graph for a manufacturing company:   Select the answer that best describes the labeled item on the diagram.

Accepted Answer

A)  Area CDE represents the area of net loss. 
B)  Line AC graphs total fixed costs. 
C)  Point D represents the point at which the contribution margin per unit increases. 
D)  Line AC graphs total costs. 
A)  Area CDE represents the area of net loss. 
B)  Line AC graphs total fixed costs. 
C)  Point D represents the point at which the contribution margin per unit increases. 
D)  Line AC graphs total costs.

Question 5

Assuming all other things are the same, if there was a decrease in the break-even point, selling price per unit must have:

Accepted Answer

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

Question 6

Assume the following cost behavior data for Graphic Arts Company: Sales price $18.00 per unit
Variable costs $13.50 per unit
Fixed costs $22,500
Tax rate 40%
What volume of sales dollars is required to earn a before-tax income of $27,000?

Accepted Answer

A)  $90,000 
B)  $180,000 
C)  $198,000 
D)  $270,000 
A)  $90,000 
B)  $180,000 
C)  $198,000 
D)  $270,000

Question 7

In 2016, 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 2016 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 8

In a CVP graph, the intersection of the total costs line and the total sales revenue line is the break-even point in units.

Accepted Answer

A) True 
 B)False

Question 9

Sensitivity analysis is a what-if technique that examines the impact of changes in assumptions.

Accepted Answer

A) True 
 B)False

Question 10

In a profit-volume graph, the slope of the profit 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

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

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

In the cost-volume-profit analysis, income taxes

Accepted Answer

A)  are treated as a fixed cost. 
B)  increase the sales volume required to break even. 
C)  increase the sales volume required to earn a desired profit. 
D)  are treated as a fixed cost 
A)  are treated as a fixed cost. 
B)  increase the sales volume required to break even. 
C)  increase the sales volume required to earn a desired profit. 
D)  are treated as a fixed cost

Question 14

Information about the Harmonious Company's two products includes:   Monthly fixed costs are as follows:
  If the sales mix in units is 50 percent Product X and 50 percent Product Y, the monthly break-even total sales dollars is

Accepted Answer

A)  $75,000. 
B)  $318,746. 
C)  $275,000. 
D)  $315,000. 
A)  $75,000. 
B)  $318,746. 
C)  $275,000. 
D)  $315,000.

Question 15

Using cost-volume-profit analysis, we can conclude that a 20 percent reduction in variable costs will

Accepted Answer

A)  reduce the break-even sales volume by 20 percent. 
B)  reduce total costs by 20 percent. 
C)  reduce the slope of the total cost line by 20 percent. 
D)  not affect the break-even sales volume if there is an offsetting 20 percent increase in fixed costs. 
A)  reduce the break-even sales volume by 20 percent. 
B)  reduce total costs by 20 percent. 
C)  reduce the slope of the total cost line by 20 percent. 
D)  not affect the break-even sales volume if there is an offsetting 20 percent increase in fixed costs.

Question 16

In a cost-volume-profit graph, the slope of the total cost 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 17

The is where total revenues equal total costs.

Accepted Answer

The answer of The is where total revenues equal total...

Question 18

In 2016, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500.
The annual sales volume required for Samantha's to have a before­tax income of $18,000 is

Accepted Answer

A)  $126,000. 
B)  $84,000. 
C)  $73,500. 
D)  $42,000. 
A)  $126,000. 
B)  $84,000. 
C)  $73,500. 
D)  $42,000.

Question 19

Which of the following equations is CORRECT?

Accepted Answer

A)  Sales revenues = Variable expenses - (Fixed expenses + Operating income) 
B)  Sales revenues - Variable expenses - Fixed expenses = Operating income 
C)  Sales revenues + Variable expenses + Fixed expenses = Operating income 
D)  Sales revenues - Fixed expenses = Variable expenses - Operating income 
A)  Sales revenues = Variable expenses - (Fixed expenses + Operating income) 
B)  Sales revenues - Variable expenses - Fixed expenses = Operating income 
C)  Sales revenues + Variable expenses + Fixed expenses = Operating income 
D)  Sales revenues - Fixed expenses = Variable expenses - Operating income

Question 20

Julius Corporation had the following income statement for 2016:   What is the degree of operating leverage for Julius Corporation for 2016?

Accepted Answer

A)  3.000 
B)  2.000 
C)  0.333 
D)  2.333 
A)  3.000 
B)  2.000 
C)  0.333 
D)  2.333

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

Symbiosis Company had the following information: Suppose Symbiosis could reduce setup costs by $500 per setup and could reduce the number of engineering hours Needed to 1,216.66 hours. How many units must be sold to break even in this case?

Under ABC, cost drivers are separated into unit-based and non-unit-based drivers.

The following diagram is a cost-volume-profit graph for a manufacturing company: Select the answer that best describes the labeled item on the diagram.

Assuming all other things are the same, if there was a decrease in the break-even point, selling price per unit must have:

Assume the following cost behavior data for Graphic Arts Company: Sales price $18.00 per unit Variable costs $13.50 per unit Fixed costs $22,500 Tax rate 40% What volume of sales dollars is required to earn a before-tax income of $27,000?

In 2016, 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 2016 break-even sales volume was

In a CVP graph, the intersection of the total costs line and the total sales revenue line is the break-even point in units.

Sensitivity analysis is a what-if technique that examines the impact of changes in assumptions.

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

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

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

In the cost-volume-profit analysis, income taxes

Information about the Harmonious Company's two products includes: Monthly fixed costs are as follows: If the sales mix in units is 50 percent Product X and 50 percent Product Y, the monthly break-even total sales dollars is

Using cost-volume-profit analysis, we can conclude that a 20 percent reduction in variable costs will

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

The is where total revenues equal total costs.

In 2016, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. The annual sales volume required for Samantha's to have a beforetax income of $18,000 is

Which of the following equations is CORRECT?

Julius Corporation had the following income statement for 2016: What is the degree of operating leverage for Julius Corporation for 2016?

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

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

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

Symbiosis Company had the following information: Suppose Symbiosis could reduce setup costs by $500 per setup and could reduce the number of engineering hours Needed to 1,216.66 hours. How many units must be sold to break even in this case?

Under ABC, cost drivers are separated into unit-based and non-unit-based drivers.

The following diagram is a cost-volume-profit graph for a manufacturing company: Select the answer that best describes the labeled item on the diagram.

Assuming all other things are the same, if there was a decrease in the break-even point, selling price per unit must have:

Assume the following cost behavior data for Graphic Arts Company: Sales price $18.00 per unit Variable costs $13.50 per unit Fixed costs $22,500 Tax rate 40% What volume of sales dollars is required to earn a before-tax income of $27,000?

In 2016, 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 2016 break-even sales volume was

In a CVP graph, the intersection of the total costs line and the total sales revenue line is the break-even point in units.

Sensitivity analysis is a what-if technique that examines the impact of changes in assumptions.

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

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

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

In the cost-volume-profit analysis, income taxes

Information about the Harmonious Company's two products includes: Monthly fixed costs are as follows: If the sales mix in units is 50 percent Product X and 50 percent Product Y, the monthly break-even total sales dollars is

Using cost-volume-profit analysis, we can conclude that a 20 percent reduction in variable costs will

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

The is where total revenues equal total costs.

In 2016, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. The annual sales volume required for Samantha's to have a before­tax income of $18,000 is

Which of the following equations is CORRECT?

Julius Corporation had the following income statement for 2016: What is the degree of operating leverage for Julius Corporation for 2016?

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

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

In 2016, Samantha's Bath and Body Shop had variable costs of $27,000, fixed costs of $18,000, and a net loss of $4,500. The annual sales volume required for Samantha's to have a beforetax income of $18,000 is