Question 1 if the activity level increases 10%, total variable

Question 1  

If the activity level increases 10%, total variable costs will

 

remain the same. 

decrease by less than 10%. 

increase 10%. 

increase by more than 10%.

 

Question 2  

Portman Company’s activity for the first three months of 2013 are as follows:

 

Machine HoursElectrical Cost

January2,100$3,600

February2,600$4,350

March2,900$4,800

 

Using the high-low method, how much is the cost per machine hour?

 

$1.50    

$1.69 

$2.25 

$1.34

 

Question 3  

Gribble Company’s high and low level of activity last year was 60,000 units of product produced in May and 20,000 units produced in November. Machine maintenance costs were $104,000 in May and $40,000 in November. Using the high-low method, determine an estimate of total maintenance cost for a month in which production is expected to be 45,000 units.

 

$96,000 

$80,000 

$78,000 

$90,000

 

Question 4  

The break-even point is where

 

total sales equal total fixed costs. 

total variable costs equal total fixed costs. 

contribution margin equals total fixed costs. 

total sales equal total variable costs.

 

Question 5  

Armstrong Industries has a contribution margin of $300,000 and a contribution margin ratio of 30%. How much are total variable costs?

 

$1,000,000 

$210,000 

$700,000 

$90,000

 

Question 6  

Farmers’ Industries has fixed costs of $400,000 and variable costs are 60% of sales. How much will Farmers report as sales when its net income equals $40,000?

 

$264,000 

$733,333 

$1,040,000 

$1,100,000 

 

Question 7  

A cost which remains constant per unit at various levels of activity is a

 

variable cost. 

fixed cost.

manufacturing cost. 

mixed cost.

 

Question 8  

Wendy Industries produces only one product. Monthly fixed expenses are $12,000, monthly unit sales are 2,500, and the unit contribution margin is $10. How much is monthly net income?

 

$13,000   

$25,000 

$37,000 

$0

 

Question 9  

The increased use of automation and less use of the work force in companies has caused a trend towards an increase in

 

both variable and fixed costs. 

variable costs and no change in fixed costs. 

fixed costs and a decrease in variable costs. 

variable costs and a decrease in fixed costs.

 

Question 10  

For an activity base to be useful in cost behavior analysis,

 

the activity level should be constant over a period of time. 

the activity should always be stated in dollars. 

there should be a correlation between changes in the level of activity and changes in costs. 

the activity should always be stated in terms of units

 

Question 11  

Which one of the following is not an assumption of CVP analysis?

 

All units produced are sold. 

The behavior of costs and revenues are linear within the relevant range. 

Sales mix remains constant. 

All costs are variable costs.

 

Question 12  

How much sales are required to earn a target income of $160,000 if total fixed costs are $200,000 and the contribution margin ratio is 40%?

 

$600,000 

$400,000 

$900,000   

$660,000

 

Question 13  

Greg’s Golf Carts produces two models: Model 24 has sales of 500 units with a contribution margin of $40 each; Model 26 has sales of 350 units with a contribution margin of $50 each. If sales of Model 26 increase by 100 units, how much will profit change?

 

$17,500 increase 

$22,500 increase 

$5,000 increase 

$35,000 increase

 

Question 14  

At the high level of activity in November, 7,000 machine hours were run and power costs were $16,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to $8,000. Using the high-low method, the estimated fixed cost element of power costs is

 

$11,200. 

$16,000. 

$8,000. 

$4,800.  

 

Question 15  

The CVP income statement

 

is distributed internally and externally. 

discloses contribution margin in the body of the statement. 

classifies costs by functions. 

will reflect a different net income than the traditional income statement

 

Get 20% Discount on This Paper
Pages (550 words)
Approximate price: -

Try it now!

Get 20% Discount on This Paper

We'll send you the first draft for approval by at
Total price:
$0.00

How it works?

Follow these simple steps to get your paper done

Place your order

Fill in the order form and provide all details of your assignment.

Proceed with the payment

Choose the payment system that suits you most.

Receive the final file

Once your paper is ready, we will email it to you.

Our Services

Custom Writings Help is a Quality-Oriented Company in Online Writing as a result of hiring exceptional professionals to execute clients' tasks.

Essays

Research Papers

At Custom Writings Help,We understand the struggle of research paper writing, and that is why at Custom WritingS Help, we are all out to help you. We pride ourselves on having a team of clinical writers. The stringent and rigorous vetting process ensures that only the 'BEST' Writers are chosen for the job. We have highly qualified Ph.D. and MA writers working with us; we equally offer these experienced writers specific bonuses and incentives to make them deliver highly original, unique, and informative content at reasonably low prices.

Admissions

Thesis Writing Service

Worlwide, Many Masters Students are struggling with Thesis Completion. A thesis is likely to be the longest and most challenging piece of work a student has ever completed. However, unlike essays and other assignments, a student can pick a particular interest topic and work on their initiative. Fortunately, we are there for you. At Custom Writings Help, you are assured of an authentic, imaginative, informative, linguistically great, and advantageous thesis that adheres to all your needs. So, why continue considering different writers when you have discovered the best in the field?

Editing

Custom Papers

Not a single student can avoid writing custom papers. However, a total lack of experience, skills, and time makes it very hard to produce a superb writing piece. Therefore, if you are seeking professional help, turn to us. Our specialized and experienced writers compose a variety of model papers, including custom essays, college term papers, research papers, book reports, MBA essays, executive summaries, dissertations, Ph.D. theses, admission essays, and research proposals for college and university students at any level.

Coursework

Essay Writing

Most of the students disregard the critical principles of essay writing and compose papers below sensible guidelines. Therefore, with Custom Writings Help, one should not worry about his/her essay. Our Writers compose informative and engaging content on all complexities and topics. We write meaningful and smart essays while prioritizing all aspects that bring about a good grade, such as impeccable grammar, proper structure, zero-plagiarism, and conformance to guidelines.

Coursework

Coourse Work Writing

Don't let the seemingly never-ending onslaught of writing assignments get you down. If you are looking where to get course work assistance online, the writers at Custom Writings Help are here to assist you with all of your writing needs. We undertake to unique delivery of papers that meet the professor's requirements. The content is proofread, edited, and checked plagiarism before submission to customers. No matter how big or small your work is, we will deliver on time. Try US Now! !

Coursework

Dissertation Writing Service

High-Quality Dissertation Writing Services are rare. They require Ph.D. academicians – not easily found. However, are an exception. The years, time, and resources we have invested in the dissertation world has given us a competitive advantage over others. Choose to come to Custom Writings Help; You will find perfect Ph.D. consultants who have written hundreds of dissertations theses ready to help you. Let our dissertation-writing services help you craft your dissertation, for you are assured we will give you the results.