Quiz
Accounting Exam II
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Questions in this quiz (21)
1Activity Base is the activity that causes cost to change
- ATrue
- BFalse
2Relevant range is the range of activity over which the changes in costs are not of interest.
- ATrue
- BFalse
3Variable costs consist of DM, DL, and all FOH costs.
- ATrue
- BFalse
4For Variable costs, what happens to cost per unit and total cost? Do they change or stay the same with changes in production?
- ACost per unit decreases, Total cost stays the same.
- BCost per unit increases, Total cost decreases.
- CCost per unit stays the same, Total cost changes in proportion to activity base.
5For Fixed Cost, how do total cost and cost per unit react to changes in activity base?
- ACost per unit increases as activity level increases; Total cost remains the same regardless to production
- BCost per unit decreases as activity level decreases;Total cost changes in proportion to changes in activity level
- CCost per unit decreases as activity level increases;Total cost remains the same regardless of production
6What method is used to separate variable and fixed costs for mixed costs?
- ABreak-Even point
- BHigh-low
- CMargin of Safety
- DOperating Leverage
7What are some examples of variable costs?
- Astraight-line depreciation
- BDirect materials cost
- Crent
- Dsales commission
- Eshipping costs
8What are some examples of Fixed Costs?
- AStraight-line depreciation
- BRent
- CSales commission
- DPlant manager salary
9The formula: Difference in Total Cost/Difference in units produced comes from which method?
- ABreak-Even Method
- BOperating Method
- CHigh-low method
- DVariable Method
10The formula for Fixed Cost after using High-low method is:
Total costs-(variable cost per unit x units produced)- ATrue
- BFalse
11The formula for Total Cost = (Fixed cost x units produced) + variable cost per unit
- ATrue
- BFalse
12How do we find Contribution Margin?
- Avariable costs - sales
- Bsales - variable costs
- Csales - fixed costs
13How do we find Contribution Margin Ratio?
- Acontribution margin / sales
- Bsales / contribution margin
- Cunit contribution margin / sales
14How do we find Unit Contribution Margin?
- Aunit selling price - variable costs
- Bfixed costs - unit selling price
- Cunit selling price - unit variable costs
15How do we find Break-Even Point (units)?
- Afixed cost/ unit contribution margin
- Bfixed cost / contribution margin
- Cvariable cost / contribution margin ratio
- Dfixed cost / contribution margin ratio
16How do we find Break-Even Point (dollars $)
- AFixed cost / unit contribution margin
- BFixed cost / contribution margin ratio
- CFixed cost / unit contribution margin ratio
- DVariable cost / unit contribution margin
17Break-Even Point is affected by?
- Achanges in fixed costs
- Bchanges is variable costs
- Cchanges in unit variable costs
- Dchanges in unit selling price
18An increase in fixed costs increases break-even point with a direct relationship
- ATrue
- BFalse
19A decrease in fixed cost increases break-even point
- ATrue
- BFalse
20An increase in unit variable cost will increase the break-even point, and a decrease in unit variable cost will decrease the break-even point.
- ATrue
- BFalse
21An 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.
- ATrue
- BFalse
Information
- Description
- formulas, and comprehension
- Author
- elyza.gaona01
- Language
- English
- Views
- 160
- Tags
- Rating
- 4.0 out of 5 · 1 rating Rate this quiz