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COST-VOLUME-PROFIT ANALYSIS mcq homework

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Question;a111. The one primary difference between variable;and absorption costing is that under;a. variable;costing, companies charge the fixed manufacturing overhead as an expense in the;current period.;b. absorption;costing, companies charge the fixed manufacturing overhead as an expense in the;current period.;c. variable;costing, companies charge the variable manufacturing overhead as an expense in;the current period.;d. absorption;costing, companies charge the variable manufacturing overhead as an expense in;the current period.;a112. Net income under absorption costing is higher than net income;under variable costing;a. when;units produced exceed units sold.;b. when;units produced equal units sold.;c. when;units produced are less than units sold.;d. regardless;of the relationship between units produced and units sold.;a113. Some fixed manufacturing overhead costs of;the current period are deferred to future periods under;a. absorption;costing.;b. variable;costing.;c. both;absorption and variable costing.;d. neither;absorption nor variable costing.;a114. Nielson Corp. sells its;product for $8,800 per unit. Variable costs per unit are: manufacturing, $4,800;and selling and administrative, $100. Fixed costs are: $24,000 manufacturing;overhead, and $32,000 selling and administrative. There was no beginning;inventory at 1/1/12. Production was 20 units per year in 2012 ?2014. Sales was;20 units in 2012, 16 units in 2013, and 24 units in 2014. Income under;absorption costing for 2013 is;a. $6,400.;b. $11,200.;c. $12,800.;d. $17,600.;a115. Nielson Corp. sells its;product for $8,800 per unit. Variable costs per unit are: manufacturing, $4,800;and selling and administrative, $100. Fixed costs are: $24,000 manufacturing;overhead, and $32,000 selling and administrative. There was no beginning;inventory at 1/1/12. Production was 20 units per year in 2012 ?2014. Sales was;20 units in 2012, 16 units in 2013, and 24 units in 2014. Income under;absorption costing for 2014 is;a. $26,400.;b. $31,200.;c. $32,800.;d. $37,600.;a116. Nielson Corp. sells its;product for $8,800 per unit. Variable costs per unit are: manufacturing, $4,800;and selling and administrative, $100. Fixed costs are: $24,000 manufacturing;overhead, and $32,000 selling and administrative. There was no beginning inventory;at 1/1/12. Production was 20 units per year in 2012 ?2014. Sales was 20 units;in 2012, 16 units in 2013, and 24 units in 2014. Income under variable;costing for 2013 is;a. $6,400.;b. $11,200.;c. $12,800.;d. $17,600.;a 117. Nielson Corp. sells its product for $8,800;per unit. Variable costs per unit are: manufacturing, $4,800, and selling and;administrative, $100. Fixed costs are: $24,000 manufacturing overhead, and $32,000;selling and administrative. There was no beginning inventory at 1/1/12.;Production was 20 units per year in 2012 ?2014. Sales was 20 units in 2012, 16;units in 2013, and 24 units in 2014. Income under variable costing for 2014;is;a. $26,400.;b. $31,200.;c. $32,800.;d. $37,600.;a118. Nielson;Corp. sells its product for $8,800 per unit. Variable costs per unit are;manufacturing, $4,800, and selling and administrative, $100. Fixed costs are: $24,000;manufacturing overhead, and $32,000 selling and administrative. There was no;beginning inventory at 1/1/12. Production was 20 units per year in 2012 ?2014.;Sales was 20 units in 2012, 16 units in 2013, and 24 units in 2014. For;the three years 2012?2014;a. absorption;costing income exceeds variable costing income by $8,000.;b. absorption;costing income equals variable costing income.;c. variable;costing income exceeds absorption costing income by $8,000.;d. absorption;costing income may be greater than, equal to, or less than variable costing;income, depending on the situation.;a119. When production exceeds sales;a. some;fixed manufacturing overhead costs are deferred until a future period under;absorption costing.;b. some;fixed manufacturing overhead costs are deferred until a future period under;variable costing.;c. variable;and fixed manufacturing overhead costs are deferred until a future period under;absorption costing.;b. variable;and fixed manufacturing overhead costs are deferred until a future period under;variable costing.;a120. When production exceeds sales;a. ending;inventory under variable costing will exceed ending inventory under absorption;costing.;b. ending;inventory under absorption costing will exceed ending inventory under variable;costing.;c. ending;inventory under absorption costing will be equal to ending inventory under;variable costing.;d. ending;inventory under absorption costing may exceed, be equal to, or be less than;ending inventory under variable costing.;a121. Management may be tempted to overproducewhen;using;a. variable;costing, in order to increase net income.;b. variable;costing, in order to decrease net income.;c. absorption;costing, in order to increase net income.;d. absorption;costing, in order to decrease net income.;a122. If a division manager?s compensation is based upon the division?s;net income, the manager may decide to meet the net income targets by increasing;productionwhen using;a. variable;costing, in order to increase net income.;b. variable;costing, in order to decrease net income.;c. absorption;costing, in order to increase net income.;d. absorption;costing, in order to decrease net income.;a123. Expected sales for next year for the Beresford;Company is 150,000 units. Curt Planters, manager of the Beresford Division, is;under pressure to improve the performance of the Division. As he plans for next;year, he has to decide whether to produce 150,000 units or 180,000 units. The Beresford;Company will have higher net income if Curt Planters decides to produce;a. 180,000;units if income is measured under absorption costing.;b. 180,000;units if income is measured under variable costing.;c. 150,000;units if income is measured under absorption costing.;d. 150,000;units if income is measured under variable costing.;a124. Which of the following is a potential;advantage of variable costing relative to absorption costing?;a. Net;income is affected by changes in production levels.;b. The;use of variable costing is consistent with cost-volume-profit analysis.;c. Net;income computed under variable costing is not closely tied to changes in sales;levels.;d. More;than one of the above.;a125. Companies that use just-in-time processing;techniques will;a. have;greater differences between absorption and variable costing net income.;b. have;smaller differences between absorption and variable costing net income.;c. not;be able to use absorption costing.;d. not;be able to use variable costing.

 

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