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Question 1 The difference between total sales in dollars and total variable expenses is called:

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Question 1;The difference between total sales in dollars and total variable expenses is called;A. net operating income.;B. net profit.;C. the gross margin.;D. the contribution margin.;Question 2;With regard to the CVP graph, which of the following statements is not correct?;A. The CVP graph assumes that volume is the only factor affecting total cost.;B. The CVP graph assumes that selling prices do not change.;C. The CVP graph assumes that variable costs go down as volume goes up.;D. The CVP graph assumes that fixed expenses are constant in total within the relevant range.;Question 3;Which of the following formulas is used to calculate the contribution margin ratio?;A. (Sales - Fixed expenses)? Sales;B. (Sales - Cost of goods sold)? Sales;C. (Sales - Variable expenses)? Sales;D. (Sales - Total expenses)? Sales;Question 4;The break-even point in unit sales is found by dividing total fixed expenses by;A. the contribution margin ratio.;B. the variable expenses per unit.;C. the sales price per unit.;D. the contribution margin per unit.;Question 5;Break-even analysis assumes that;A. total costs are constant.;B. the average fixed expense per unit is constant.;C. the average variable expense per unit is constant.;D. variable expenses are nonlinear.;Question 6;The break-even point in unit sales increases when variable expenses;A. increase and the selling price remains unchanged.;B. decrease and the selling price remains unchanged.;C. decrease and the selling price increases.;D. remain unchanged and the selling price increases.;Question 7;The margin of safety percentage is computed as;A. Break-even sales? Total sales.;B. Total sales - Break-even sales.;C. (Total sales - Break-even sales)? Break-even sales.;D. (Total sales - Break-even sales)? Total sales.;Question 8;The degree of operating leverage can be calculated as;A. contribution margin divided by sales.;B. gross margin divided by net operating income.;C. net operating income divided by sales.;D. contribution margin divided by net operating income.;Question 9;Which of the following are considered to be product costs under variable costing?;I. Variable manufacturing overhead.;II. Fixed manufacturing overhead.;III. Selling and administrative expenses.;A. I.;B. I and II.;C. I and III.;D. I, II, and III.;Question 10;Which of the following are considered to be product costs under absorption costing?;I. Variable manufacturing overhead.;II. Fixed manufacturing overhead.;III. Selling and administrative expenses.;A. I, II, and III.;B. I and II.;C. I and III.;D. I.;Question 11;Under variable costing, costs that are treated as period costs include;A. only fixed manufacturing costs.;B. both variable and fixed manufacturing costs.;C. all fixed costs.;D. only fixed selling and administrative costs.;Question 12;A company using lean production methods likely would show approximately the same net operating income under both absorption and variable costing because;A. ending inventory would be valued in the same manner for both methods under lean production.;B. production is geared to sales under lean production and thus there would be little or no ending inventory.;C. under lean production fixed manufacturing overhead costs are charged to the period incurred rather than to the product produced.;D. there is no distinction made under lean production between fixed and variable costs.;Question 13;A common cost that should not be assigned to a particular product on a segmented income statement is;A. the product's advertising costs.;B. the salary of the corporation president.;C. direct materials costs.;D. the product manager's salary.;Question 14;Personnel administration is an example of (an);A. Unit-level activity.;B. Batch-level activity.;C. Product-level activity.;D. Organization-sustaining activity.;Question 15;Which of the following activities would be classified as a batch-level activity?;A. Setting up equipment.;B. Designing a new product.;C. Training employees.;D. Milling a part required for the final product.;Question 16;A duration driver is;A. A simple count of the number of times an activity occurs.;B. An activity measure that is used for the life of the company.;C. A measure of the amount of time required to perform an activity.;D. An activity measure that is used for the life of an activity-based costing system.;Question 17;A transaction driver is;A. An event that causes a transaction to begin.;B. A measure of the amount of time required to perform an activity.;C. An event that causes a transaction to end.;D. A simple count of the number of times an activity occurs.;Question 18;Designing a new product is an example of (an);A. Unit-level activity.;B. Batch-level activity.;C. Product-level activity.;D. Organization-sustaining activity.;Question 19;Property taxes are an example of a cost that would be considered to be;A. Unit-level.;B. Batch-level.;C. Product-level.;D. Organization-sustaining.;Question 20;Unit-level activities are performed each time a unit is produced.;True;False;Question 21;Organization-sustaining activities are activities of the general organization that support specific products.;True;False;Question 22;Costs classified as batch-level costs should depend on the number of batches processed rather than on the number of units produced, the number of units sold, or other measures of volume.;True;False;Question 23;Customer-level activities relate to specific customers and are not tied to any specific products.;True;False;Question 24;Managing and sustaining product diversity requires many more overhead resources such as production schedulers and product design engineers than managing and sustaining a single product. The costs of these resources can be accurately allocated to products on the basis of direct labor-hours.;True;False;Question 25;Activity-based costing is a costing method that is designed to provide managers with product cost information for external financial reports.;True;False

 

Paper#77045 | Written in 18-Jul-2015

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