#### Details of this Paper

##### Acc Week 2 Test

Description

solution

Question

Acc Week 2 Test;1. Which of the following is true regarding the contribution margin ratio of a single product company? (Points: 2);As fixed expenses decrease, the contribution margin ratio increases.;The contribution margin ratio multiplied by the selling price per unit equals the contribution margin per unit.;The contribution margin ratio will decline as unit sales decline.;The contribution margin ratio equals the selling price per unit less the variable expense ratio.;2. If a company is operating at the break-even point: (Points: 2);its contribution margin will be equal to its variable expenses.;its margin of safety will be equal to zero.;its fixed expenses will be equal to its variable expenses.;its selling price will be equal to its variable expense per unit.;3. Target profit analysis is used to answer which of the following questions? (Points: 2);What sales volume is needed to cover all expenses?;What sales volume is needed to cover fixed expenses?;What sales volume is needed to earn a specific amount of net operating income?;What sales volume is needed to avoid a loss?;4. The margin of safety can be calculated by: (Points: 2);Sales (Fixed expenses/Contribution margin ratio).;Sales (Fixed expenses/Variable expense per unit).;Sales (Fixed expenses + Variable expenses).;Sales Net operating income.;5. Sorin Inc., a company that produces and sells a single product, has provided its contribution format income statement for January.;;If the company sells 4,600 units, its total contribution margin should be closest to: (Points: 2);\$54,600;\$59,800;\$69,400;\$13,362;6. Decaprio Inc. produces and sells a single product. The company has provided its contribution format income statement for June.;;If the company sells 9,200 units, its net operating income should be closest to: (Points: 2);\$27,077;\$49,900;\$36,700;\$25,900;7. The margin of safety in the Flaherty Company is \$24,000. If the company's sales are \$120,000 and its variable expenses are \$80,000, its fixed expenses must be: (Points: 2);\$8,000;\$32,000;\$24,000;\$16,000;8. Jilk Inc.'s contribution margin ratio is 58% and its fixed monthly expenses are \$36,000. Assuming that the fixed monthly expenses do not change, what is the best estimate of the company's net operating income in a month when sales are \$103,000? (Points: 2);\$23,740;\$59,740;\$67,000;\$7,260;9. Borich Corporation produces and sells a single product. Data concerning that product appear below; ;The break-even in monthly unit sales is closest to: (Points: 2);2,055;4,030;4,194;3,426;10. Data concerning Follick Corporation's single product appear below;;The break-even in monthly dollar sales is closest to: (Points: 2);\$1,148,400;\$638,851;\$321,552;\$446,600;11. Hettrick International Corporation's only product sells for \$120.00 per unit and its variable expense is \$52.80. The company's monthly fixed expense is \$396,480 per month. The unit sales to attain the company's monthly target profit of \$13,000 is closest to: (Points: 2);7,755;6,093;5,753;3,412;12. The costing method that treats all fixed costs as period costs is: (Points: 2);absorption costing.;job-order costing.;variable costing.;process costing.;13. Under the variable costing method, which of the following is always expensed in its entirety in the period in which it is incurred? (Points: 2);fixed manufacturing overhead cost;fixed selling and administrative expense;variable selling and administrative expense;All of these;14. Net operating income under variable and absorption costing will generally: (Points: 2);always be equal.;never be equal.;be equal only when production and sales are equal.;be equal only when production exceeds sales.;15. Fleet Corporation produces a single product. The company manufactured 700 units last year. The ending inventory consisted of 100 units. There was no beginning inventory. Variable manufacturing costs were \$6.00 per unit and fixed manufacturing costs were \$2.00 per unit. What would be the change in the dollar amount of ending inventory if variable costing was used instead of absorption costing? (Points: 2);\$800 decrease;\$200 decrease;\$0;\$200 increase;16. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations; ;What is the total period cost for the month under the absorption costing approach? (Points: 2);\$56,700;\$65,500;\$8,800;\$37,800;17. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations; ;What is the unit product cost for the month under variable costing? (Points: 2);\$118;\$94;\$111;\$87;18. A manufacturing company that produces a single product has provided the following data concerning its most recent month of operations;

Price : \$22