GCu ACC650 quiz 4

Question # 00742193 Posted By: neil2103 Updated on: 10/30/2019 10:05 AM Due on: 10/31/2019
Subject Accounting Topic Accounting Tutorials:
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•             The difference between budgeted sales revenue and break-even sales revenue is the:

•            

contribution margin.

 

 

•            

contribution-margin ratio.

 

 

•            

safety margin.

 

 

•            

target net profit.

 

 

•            

operating leverage.

 

 

 

 

 

 

 

 

•             Amounts spent for charitable contributions are an example of a (n):

•            

committed fixed cost.

 

 

•            

committed variable cost.

 

 

•            

discretionary fixed cost.

 

 

•            

discretionary variable cost.

 

 

•            

engineered cost.

 

 

•             cost that has both a fixed and variable component is known as a:

•            

step-fixed cost.

 

 

•            

step-variable cost.

 

 

•            

semivariable cost.

 

 

•            

curvilinear cost.

 

 

•            

discretionary cost.

 

 

•             The break-even point is that level of activity where:

•            

total revenue equals total cost.

 

 

•            

variable cost equals fixed cost.

 

 

•            

total contribution margin equals the sum of variable cost plus fixed cost.

 

 

•            

sales revenue equals total variable cost.

 

 

•            

profit is greater than zero.

 

 

•             Partner Industries sells a single product for $50 that has a variable cost of $30. Fixed costs amount to $5 per unit when anticipated sales targets are met. If the company sells one unit in excess of its break-even volume, profit will be:

•            

$15.

 

 

•            

$20.

 

 

•            

$50.

 

 

•            

an amount that cannot be derived based on the information presented.

 

 

•            

an amount other than $15, $20, or $50 and one that can be derived based on the information presented.

 

•             Which of the following would produce the largest increase in the contribution margin per unit?

•            

A 7% increase in selling price.

 

 

•            

A 15% decrease in selling price.

 

 

•            

A 14% increase in variable cost.

 

 

•            

A 17% decrease in fixed cost.

 

 

•            

A 23% increase in the number of units sold.

 

 

•             The extent to which an organization uses fixed costs in its cost structure is measured by:

•            

financial leverage.

 

 

•            

operating leverage.

 

 

•            

fixed cost leverage.

 

 

•            

contribution leverage.

 

 

•            

efficiency leverage.

 

•             Which of the following is (are) example(s) of a mixed cost?

I. A building that is used for both manufacturing and sales activities.

II. An employee's compensation, which consists of a flat salary plus a commission.

III. Depreciation that relates to five different machines.

IV. Maintenance cost that must be split between sales and administrative offices.

•            

I only.

 

 

•            

II only.

 

 

•            

I and III.

 

 

•            

I, III, and IV.

 

 

•            

I, II, III, and IV.

 

 

•             Sophie Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units?

•            

$150,000.

 

 

•            

$151,000.

 

 

•            

$152,000.

 

 

•            

$153,000.

 

 

•            

None of the answers is correct.

 

 

•             The high-low method and least-squares regression are used by accountants to:

•            

evaluate divisional managers for purposes of raises and promotions.

 

 

•            

choose among alternative courses of action.

 

 

•            

maximize output.

 

 

•            

estimate costs.

 

 

•            

control operations.

 

 

•            

1.            Narchie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. Narchie:

•            

will break-even by selling 8,000 units.

 

 

•            

will break-even by selling 13,333 units.

 

 

•            

will break-even by selling 20,000 units.

 

 

•            

will break-even by selling 1,000,000 units.

 

 

•            

cannot break-even because it loses money on every unit sold.

 

 

 

 

 

•             A company that desires to lower its break-even point should strive to:

•            

decrease selling prices.

 

 

•            

reduce variable costs.

 

 

•            

increase fixed costs.

 

 

•            

sell more units.

 

 

•            

achieve more than one of the answers listed.

 

 

•             A forecast of a cost at a particular level of activity is known as:

•            

cost estimation.

 

 

•            

cost prediction.

 

 

•            

cost behavior.

 

 

•            

cost analysis.

 

 

•            

cost approximation.

 

 

•             Costs that remain the same over a wide range of activity, but jump to a different amount outside that range, are known as:

•            

step-fixed costs.

 

 

•            

step-variable costs.

 

 

•            

semivariable costs.

 

 

•            

curvilinear costs.

 

 

•            

mixed costs.

 

 

•             Elise Corporation has the following sales mix for its three products: A, 20%; B, 35%; and C, 45%. Fixed costs total $400,000 and the weighted-average contribution margin is $100. How many units of product A must be sold to break-even?

•            

800.

 

 

•            

4,000.

 

 

•            

20,000.

 

 

•            

None of the answers is correct.

 

 

•            

Cannot be determined based on the information presented.

•             Which of the following occurs if a company experiences an increase in its fixed costs?

•            

Net income would increase.

 

 

•            

The break-even point would increase.

 

 

•            

The contribution margin would increase.

 

 

•            

The contribution margin would decrease.

 

 

•            

More than one of the answers would occur.

 

 

 

•             All other things being equal, a company that sells multiple products should attempt to structure its sales mix so the greatest portion of the mix is composed of those products with the highest:

•            

selling price.

 

 

•            

variable cost.

 

 

•            

contribution margin.

 

 

•            

fixed cost.

 

 

•            

gross margin.

 

 

•             The relationship between cost and activity is known as:

•            

cost estimation.

 

 

•            

cost prediction.

 

 

•            

cost behavior.

 

 

•            

cost analysis.

 

 

•            

cost approximation.

 

 

•             Santa Fe Production sells a single product to wholesalers. The company's budget for the upcoming year revealed anticipated unit sales of 31,600, a selling price of $20, variable cost per unit of $8, and total fixed costs of $360,000. If Santa Fe’s unit sales are 300 units more than anticipated, its break-even point will:

•            

increase by $12 per unit sold.

 

 

•            

decrease by $12 per unit sold.

 

 

•            

increase by $8 per unit sold.

 

 

•            

decrease by $8 per unit sold.

 

 

•            

not change.

 

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