Question 1

Which of the following items would NOT be considered in cost-volume-profit analysis?

Accepted Answer

A)  units of production 
B)  fixed costs 
C)  product mix 
D)  gross profit margin 
A)  units of production 
B)  fixed costs 
C)  product mix 
D)  gross profit margin

Question 2

In multiple-product analysis, direct fixed costs are

Accepted Answer

A)  fixed costs that are not traceable to the segments and would remain even if one of the segments were eliminated. 
B)  fixed costs which can be traced to each segment and would remain even if one of the segments were eliminated. 
C)  fixed costs that are not traceable to the segments and would be avoided if the segment did not exist. 
D)  the fixed costs which can be traced to each segment and would be avoided if the segment did not exist. 
A)  fixed costs that are not traceable to the segments and would remain even if one of the segments were eliminated. 
B)  fixed costs which can be traced to each segment and would remain even if one of the segments were eliminated. 
C)  fixed costs that are not traceable to the segments and would be avoided if the segment did not exist. 
D)  the fixed costs which can be traced to each segment and would be avoided if the segment did not exist.

Question 3

Which of the following statements is TRUE in a cost-volume-profit graph?

Accepted Answer

A)  The slope of the total cost line is dependent on the variable cost per unit. 
B)  The total cost line normally begins at zero. 
C)  The total revenue line typically begins above zero. 
D)  The slope of the total revenue line is the contribution margin per unit. 
A)  The slope of the total cost line is dependent on the variable cost per unit. 
B)  The total cost line normally begins at zero. 
C)  The total revenue line typically begins above zero. 
D)  The slope of the total revenue line is the contribution margin per unit.

Question 4

The income statement for Symbiosis Manufacturing Company for 2016 is as follows:   If sales increase by 1,000 units, what will happen to profit?

Accepted Answer

A)  increase by $1,200 
B)  increase by $4,800 
C)  increase by $7,200 
D)  increase by $12,000 
A)  increase by $1,200 
B)  increase by $4,800 
C)  increase by $7,200 
D)  increase by $12,000

Question 5

Assume the following information:

Accepted Answer

A)  4,000 units 
B)  2,750 units 
C)  3,570 units 
D)  3,750 units 
A)  4,000 units 
B)  2,750 units 
C)  3,570 units 
D)  3,750 units

Question 6

Increases in sales of low contribution margin products decrease the break-even point.

Accepted Answer

A) True 
 B)False

Question 7

The DesMaris Company had the following income statement for the month of November 2016: DesMaris Company Income Statement
For the Month of November 2016

Accepted Answer

A)  3,300 units 
B)  10,000 units 
C)  4,300 units 
D)  7,300 units 
A)  3,300 units 
B)  10,000 units 
C)  4,300 units 
D)  7,300 units

Question 8

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 an after-tax income of $40,500?

Accepted Answer

A)  $360,000 
B)  $90,000 
C)  $252,000 
D)  $495,000 
A)  $360,000 
B)  $90,000 
C)  $252,000 
D)  $495,000

Which of the following items would NOT be considered in cost-volume-profit analysis?

In multiple-product analysis, direct fixed costs are

Which of the following statements is TRUE in a cost-volume-profit graph?

The income statement for Symbiosis Manufacturing Company for 2016 is as follows: If sales increase by 1,000 units, what will happen to profit?

Assume the following information:

Increases in sales of low contribution margin products decrease the break-even point.

The DesMaris Company had the following income statement for the month of November 2016: DesMaris Company Income Statement For the Month of November 2016

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 an after-tax income of $40,500?

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

Which of the following items would NOT be considered in cost-volume-profit analysis?

In multiple-product analysis, direct fixed costs are

Which of the following statements is TRUE in a cost-volume-profit graph?

The income statement for Symbiosis Manufacturing Company for 2016 is as follows: If sales increase by 1,000 units, what will happen to profit?

Assume the following information:

Increases in sales of low contribution margin products decrease the break-even point.

The DesMaris Company had the following income statement for the month of November 2016: DesMaris Company Income Statement For the Month of November 2016

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 an after-tax income of $40,500?

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