Cost-Volume-Profit Relationships, Accounting

Question: Variable costs are costs that:
A
vary in total directly and proportionalely with changes in the activity level.

B
remain the same per unit at every activity level

C
None

D
Both

Note: Not available
1. Report
Question: The relevant range is:
A
the range over of activity in which variable costs will be curvilinear.

B
the range of activity in which fixed costs will be curvilinear.

C
the range over which the company expects to operate during a year.

D
usually from zero to 100% of operation capacity.

Note: Not available
1. Report
Question: Mixed costs consist of a:
A
variable cost element and a fixed cost element.

B
fixed cost element and controllable cost element.

C
relevant cost element and a controllable cost element.

D
variable cost element and a relevant cost element.

Note: Not available
1. Report
Question: One of the following is not involved in CVP analysis. That factor is:
A
sales mix.

B
unit selling prices.

C
fixed costs per unit.

D
volume or level of activity.

Note: Not available
1. Report
Question: Contribution margin:
A
is revenue remaining after deducting variable costs.

B
may be expressed as contribution margin per unit.

C
None

D
Both

Note: Not available
1. Report
Question: Gossen Company is planning to sell 200,000 pliers fo $4 per unit. The contribution margin ratio is 25%. If Gossen will break even at this level of sales, what are the fixed costs?
A
$100,000

B
$160,000

C
$200,000

D
$300,000

Note: Not available
1. Report
Question: Marshall Company had actual sales of $600,000 when break-even sales were $420,000. What is the margin of safety ratio?
A
25%

B
30%

C
33.50%

D
45%

Note: Not available
1. Report
Question: The mathematical equation for computing required sales to obtain target net income is: Required sales=
A
variable costs+ target net income.

B
variable costs + fixed costs + target net income.

C
fixed costs + target net income.

D
None.

Note: Not available
1. Report
Question: Cournot Company sells 100,000 wrenches for $12 a unit. Fixed costs are $300,000, and net income is $200,000. What should be reported as variable expenses in the CV?
A
$700,000.

B
$900,000.

C
$500,000.

D
$1,000,000.

Note: Not available
1. Report
Question: Under variable costing, fixed manufacturing costs are classified as:
A
period costs.

B
product costs.

C
Both.

D
None

Note: Not available
1. Report

First Prev 1 Next Last

Question: Variable costs are costs that:

Question: The relevant range is:

Question: Mixed costs consist of a:

Question: One of the following is not involved in CVP analysis. That factor is:

Question: Contribution margin:

Question: Gossen Company is planning to sell 200,000 pliers fo $4 per unit. The contribution margin ratio is 25%. If Gossen will break even at this level of sales, what are the fixed costs?

Question: Marshall Company had actual sales of $600,000 when break-even sales were $420,000. What is the margin of safety ratio?

Question: The mathematical equation for computing required sales to obtain target net income is: Required sales=

Question: Cournot Company sells 100,000 wrenches for $12 a unit. Fixed costs are $300,000, and net income is $200,000. What should be reported as variable expenses in the CV?

Question: Under variable costing, fixed manufacturing costs are classified as: