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1) Which of the following is a variable cost?

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1) Which of the following is a variable cost?;A) property taxes;B) salary of plant manager;C) direct materials cost;D) straight-line depreciation expense;2) Variable cost per unit, within the relevant range, will ________.;A) increase as production decreases;B) decrease as production decreases;C) remain the same as production levels change;D) decrease as production increases;3) Which of the following statements is true of the behavior of total variable costs, within the relevant range?;A) They will decrease as production increases.;B) They will remain the same as production levels change.;C) They will decrease as production decreases.;D) They will increase as production decreases.;4) Which of the following statements is true of the behavior of total fixed costs, within the relevant range?;A) They will remain the same as production levels change.;B) They will increase as production decreases.;C) They will decrease as production decreases.;D) They will decrease as production increases.;5) The fixed costs per unit will ________.;A) increase as production decreases;B) decrease as production decreases;C) remain the same as production levels change;D) increase as production increases;6) The dollar amount that provides for covering fixed costs and then provides for operating income is called ________.;A) variable cost;B) total cost;C) contribution margin;D) margin of safety;7) Contribution margin ratio is the ratio of contribution margin to ________.;A) net sales revenue;B) cost of goods sold;C) total variable costs;D) total fixed costs;8) One of the assumptions of cost-volume-profit (CVP) analysis is that there are no changes in the ________.;A) accounts payable;B) cash balance;C) inventory levels;D) accounts receivables;9) ________ is a "what if" technique that estimates profit or loss results if selling price, costs, volume, or underlying assumptions change.;A) High-low method of analysis;B) Sensitivity analysis;C) Contribution margin;D) Operating leverage;10) When the total fixed costs increases, the contribution margin per unit ________.;A) increases;B) decreases;C) increases proportionately;D) remains the same;11) Which of the following statements is true of the budgeting process?;A) It includes the qualitative targets of a company.;B) It is a continuous process that encourages communication.;C) It shows the actual performance of the business.;D) It leads to slack where managers understate expected expenses.;12) Which of the following is an example of the planning function of a budget?;A) A budget demands integrated input from different business units and functions.;B) Employees are motivated to achieve the goals set by the budget.;C) Budget figures are used to evaluate the performance of managers.;D) The budget outlines a specific course of action for the coming period.;13) Which of the following is an example of the coordination and communication function of a budget?;A) A budget demands integrated input from different business units and functions.;B) Employees are motivated to achieve the goals set by the budget.;C) Budget figures are used to evaluate the performance of managers.;D) The budget outlines a specific course of action for the coming period.;14) Which of the following is an example of the benchmarking function of a budget?;A) A budget demands integrated input from different business units and functions.;B) Budgeting requires close cooperation between accountants and operational personnel.;C) Budget figures are used to evaluate the performance of managers.;D) The budget outlines a specific course of action for the coming period.;15) An intentional understatement of expected revenues or overstatement of expected expenses by managers in order to have a favorable performance evaluation is known as ________.;A) benchmarking;B) appropriation;C) budgetary slack;D) variance analysis;16) The starting point in the budgeting process is the preparation of the ________.;A) cash budget;B) production budget;C) sales budget;D) budgeted income statement;17) While preparing the budgeted balance sheet of a merchandising company, the amount of merchandise inventory can be obtained from the ________.;A) merchandise inventory account;B) inventory, purchases, and cost of goods sold budget;C) production budget.;D) capital expenditure budget and cash budget;18) While preparing the budgeted income statement of a merchandising company, the amount of cost of goods sold can be taken from the ________.;A) budgeted balance sheet;B) budgeted cash flow statement;C) inventory, purchases, and COGS budget;D) capital expenditures budget.;19) Which of the following budgets focuses on the income statement and its supporting schedules?;A) the operating budget;B) the cash budget;C) the capital expenditures budget;D) the sales budget;20) The ________ details how the business expects to go from the beginning cash balance to the desired ending cash balance.;A) capital expenditures budget;B) budgeted income statement;C) cash flow statement;D) cash budget

 

Paper#75023 | Written in 18-Jul-2015

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