3809962
Description
Quiz by elyza.gaona01, updated more than 1 year ago
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Created by elyza.gaona01
over 8 years ago
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Question 1
Question
Activity Base is the activity that causes cost to change
Answer
- True
- False
Question 2
Question
Relevant range is the range of activity over which the changes in costs are not of interest.
Answer
- True
- False
Question 3
Question
Variable costs consist of DM, DL, and all FOH costs.
Answer
- True
- False
Question 4
Question
For Variable costs, what happens to cost per unit and total cost? Do they change or stay the same with changes in production?
Answer
-
Cost per unit decreases, Total cost stays the same.
-
Cost per unit increases, Total cost decreases.
-
Cost per unit stays the same, Total cost changes in proportion to activity base.
Question 5
Question
For Fixed Cost, how do total cost and cost per unit react to changes in activity base?
Answer
-
Cost per unit increases as activity level increases; Total cost remains the same regardless to production
-
Cost per unit decreases as activity level decreases;Total cost changes in proportion to changes in activity level
-
Cost per unit decreases as activity level increases;Total cost remains the same regardless of production
Question 6
Question
What method is used to separate variable and fixed costs for mixed costs?
Answer
-
Break-Even point
-
High-low
-
Margin of Safety
-
Operating Leverage
Question 7
Question
What are some examples of variable costs?
Answer
-
straight-line depreciation
-
Direct materials cost
-
rent
-
sales commission
-
shipping costs
Question 8
Question
What are some examples of Fixed Costs?
Answer
-
Straight-line depreciation
-
Rent
-
Sales commission
-
Plant manager salary
Question 9
Question
The formula: Difference in Total Cost/Difference in units produced comes from which method?
Answer
-
Break-Even Method
-
Operating Method
-
High-low method
-
Variable Method
Question 10
Question
The formula for Fixed Cost after using High-low method is:
Total costs-(variable cost per unit x units produced)
Answer
- True
- False
Question 11
Question
The formula for Total Cost = (Fixed cost x units produced) + variable cost per unit
Answer
- True
- False
Question 12
Question
How do we find Contribution Margin?
Answer
-
variable costs - sales
-
sales - variable costs
-
sales - fixed costs
Question 13
Question
How do we find Contribution Margin Ratio?
Answer
-
contribution margin / sales
-
sales / contribution margin
-
unit contribution margin / sales
Question 14
Question
How do we find Unit Contribution Margin?
Answer
-
unit selling price - variable costs
-
fixed costs - unit selling price
-
unit selling price - unit variable costs
Question 15
Question
How do we find Break-Even Point (units)?
Answer
-
fixed cost/ unit contribution margin
-
fixed cost / contribution margin
-
variable cost / contribution margin ratio
-
fixed cost / contribution margin ratio
Question 16
Question
How do we find Break-Even Point (dollars $)
Answer
-
Fixed cost / unit contribution margin
-
Fixed cost / contribution margin ratio
-
Fixed cost / unit contribution margin ratio
-
Variable cost / unit contribution margin
Question 17
Question
Break-Even Point is affected by?
Answer
-
changes in fixed costs
-
changes is variable costs
-
changes in unit variable costs
-
changes in unit selling price
Question 18
Question
An increase in fixed costs increases break-even point with a direct relationship
Answer
- True
- False
Question 19
Question
A decrease in fixed cost increases break-even point
Answer
- True
- False
Question 20
Question
An increase in unit variable cost will increase the break-even point, and a decrease in unit variable cost will decrease the break-even point.
Answer
- True
- False
Question 21
Question
An increase in the unit selling price will decrease the break-even point, and a decrease in the unit selling price will increase the break-even point.
Answer
- True
- False
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