# Accounting Exam II

Quiz by elyza.gaona01, updated more than 1 year ago
 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
• True
• False

### Question 2

Question
Relevant range is the range of activity over which the changes in costs are not of interest.
• True
• False

### Question 3

Question
Variable costs consist of DM, DL, and all FOH costs.
• 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?
• 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?
• 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?
• Break-Even point
• High-low
• Margin of Safety
• Operating Leverage

### Question 7

Question
What are some examples of variable costs?
• straight-line depreciation
• Direct materials cost
• rent
• sales commission
• shipping costs

### Question 8

Question
What are some examples of Fixed Costs?
• 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?
• 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)
• True
• False

### Question 11

Question
The formula for Total Cost = (Fixed cost x units produced) + variable cost per unit
• True
• False

### Question 12

Question
How do we find Contribution Margin?
• variable costs - sales
• sales - variable costs
• sales - fixed costs

### Question 13

Question
How do we find Contribution Margin Ratio?
• contribution margin / sales
• sales / contribution margin
• unit contribution margin / sales

### Question 14

Question
How do we find Unit Contribution Margin?
• 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)?
• 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 \$)
• 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?
• 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
• True
• False

### Question 19

Question
A decrease in fixed cost increases break-even point
• 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.
• 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.
• True
• False

### Similar

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