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Chapters 7 & 8-1A

Name_________________________Acct 202Select the ideal answer.

1.The relationship in between cost and task is termed:A)cost estimation.B)cost prediction.C)cost behavior.D)cost analysis.E)cost approximation.Ans:C

2.A variable cost that has a definitive physical connection to the activity measure is called a(n):A)discretionary cost.B)engineered cost.C)managed cost.D)programmed cost.E)committed cost.Ans:B

Atlanta, Inc., which offers the high-low technique to analyze price behavior, hasdetermined that device hours finest explain the company"s utilities cost. Thecompany"s relevant variety of activity varies native a low of 600 maker hours to ahigh of 1,100 device hours, through the adhering to data being available for thefirst six months of the year:



Machine Hours
January $8,700 800
February 8,360 720
March 8,950 810
April 9,360 920
May 9,625 950
June 9,150 900

3.Using the high-low method, the utilities cost connected with 980 device hours would certainly be:A)$9,510.B)$9,660.C)$9,700.D)$9,790.E)an amount other than those provided above.Ans:D

4.The break-even suggest is the level of task where:A)total revenue equals complete cost.B)variable cost equals fixed cost.C)total donation margin amounts to the amount of variable cost plus addressed cost.D)sales revenue equals complete variable cost.E)profit is higher than zero.Ans:A

5.A company that desires to lower its break-even allude should effort to:A)decrease offering prices.B)reduce variable costs.C)increase fixed costs.D)sell an ext units.E)pursue much more than among the above actions.Ans:B

6.Adams has actually a break-even suggest of 40,000 units. If the firm"s single product sells because that $24 and fixed costs full $240,000, the variable price per unit should be:A)$6.B)$10.C)$18.D)an amount the cannot be derived based on the info presented.E)an amount various other than those in options "a," "b," and "c" however one that can be derived based upon the info presented.Ans:C

7.The donation margin proportion is:A)the difference between the offering price and also the variable cost per unit.B)fixed cost per unit split by variable price per unit.C)variable cost per unit divided by the marketing price.D)unit donation margin split by the offering price.E)unit contribution margin split by fixed cost per unit.Ans:D

8.If a firm desires to boost its safety margin, it should:A)increase addressed costs.B)decrease the donation margin.C)decrease marketing prices, presume the price adjust will have no result on demand.D)stimulate sales volume.E)attempt to raise the break-even point.Ans:D

9.Cost-volume-profit evaluation is based on details general assumptions. I m sorry of the complying with is not one of these assumptions?A)Product prices will certainly remain consistent as volume varies within the appropriate range.B)Expenses deserve to be categorized as fixed, variable, or semivariable.C)The efficiency and productivity the the production process and employees will change to reflect production advances.D)Total fixed prices remain constant as task changes.E)Unit variable cost remains constant as activity changes.Ans:C

10.The contribution revenue statement different from the traditional income declare in i m sorry of the complying with ways?A)The traditional income explain separates costs into fixed and also variable components.B)The traditional income statement subtracts every variable expenses from sales to obtain the contribution margin.C)Cost-volume-profit relationships have the right to be analyzed indigenous the contribution revenue statement.D)The effect of sales volume transforms on profit is readily obvious on the timeless income statement.E)The contribution revenue statement separates expenses into product and duration categories.Ans:CAccounting 202Home