Accounting Exam II

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Quiz by elyza.gaona01, updated more than 1 year ago
elyza.gaona01
Created by elyza.gaona01 over 5 years ago
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2

Description

formulas, and comprehension

Resource summary

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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