FINAL 2

What is a cost whose total amount changes in direct proportion to a change in volume?  mixed cost fixed cost irrelevant cost variable cost 2. Which of the following costs is an example of a fixed cost? delivery costs salary of plant manager direct materials sales commissions 3. If production increases by 15%, how will total variable costs likely react?  remain the same decrease by 15% increase by 7.5% increase by 15% 4. Which of the following statements is TRUE with respect to fixed costs per unit? They will increase as production decreases They will decrease as production decreases They will remain the same as production levels change They will increase as production increases 5. Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. What are breakeven sales?  $11,000 $4,714 $3,300 $7,700 6. Fixed Company produces a single product selling for $30 per unit. Variable costs…

Which of the following statements is true? 1. Under the absorption costing method, a company can increase profits simply by increasing the number of units produced. II. Under absorption costing, a portion of fixed manufacturing overhead cost is released from inventory when production volume exceeds sales volume. Multiple Choice O O Neither statement is true. Only statement II is true. Only statement I is true. Both statements are true.

In representing the total manufacturing costs in the equation Y=a+bX, “a ”in the equation represents the amount of total fixed costs while the “bX”represents the amount of 1. Level of activity2. Total manufacturing costs3. Total variable manufacturing costs4. Variable cost per unit   what is the best answer?

5. Which of the following best describes a fixed cost? A. Increase proportionately with output. B. Remains constant irrespective of the level of activity. C. Represents a fixed proportion of total costs. D. Has a direct relationship with output. 6. The cost unit overhead absorption rate can only be used if the business has one standard cost unit. A. True B. False 7. The following statements have been made about ABC and cost drivers. (1) A cost driver is any factor that causes a change in the cost of an activity (2) For long-term variable overhead costs, the cost driver could be the volume of activity (3) Traditional absorption costing tends to under-allocate overhead costs to low- volume products. Which of the above statement is/are true? A. (1) and (3) only B. (2) and (3) only C. (1) and (2) only D. (1), (2) and (3) 8. A company uses activity-based costing to calculate the unit cost of its products. The figures for Period 3 are as follows: Production set-up costs: £84,000. Total…

If a company increases its fixed costs for Product B, then the contribution margin per unit will a. increase. b. decrease. c. remain the same. d. More information needed.

Contribution margin Select one: a. None of the answers are correct b. excludes variable selling costs from its calculation. c. is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. O d. is always the same as gross profit margin. e. equals sales revenue minus variable costs.

In representing the total manufacturing costs in the equation Y=a+bX, “a ” in the equation represents the amount of total fixed costs while the “bX” represents the amount of Level of activity Total manufacturing costs Total variable manufacturing costs Variable cost per unit Group of answer choices 1 2 3 4

Which of the following may form the basis for the price a company (working at full capacity) should charge for a one-off order? (a) direct labor plus materials costs (b) opportunity costs plus marginal costs (c) variable costs (d) direct and indirect costs

Select the correct statement concerning the below cost-volume-profit graph: Line E A O d. O e. O a. None b. At point B, profits equal total costs. O c. Line E is the total sales line. d. Line F is the Total sales line. e. The point identified by "B" is the breakeven point. The break-even point is where B Line F Oa. None O b. total sales equal total fixed costs. O c. total variable costs equal total fixed costs. total sales equal total variable costs. Line D contribution margin ratio equals total fixed costs. O a. 190 000 b. None OC. 0.73 22 The following monthly data are available for Lumberyard Company which produces only one product: Break-even level in sales of dollars: $530 000 Budgeted sales in dollars for the month of June: $720 000 d. 1 250 000 e. 1.35 How much is the margin of safety for the company for June?

please answer both explain  both why is true or false

1.What is a cost whose total amount changes in direct proportion to a change in volume? mixed cost fixed cost irrelevant cost variable cost 2. Which of the following costs is an example of a fixed cost? delivery costs salary of plant manager direct materials sales commissions 3. If production increases by 15%, how will total variable costs likely react?  remain the same decrease by 15% increase by 7.5% increase by 15% 4. Which of the following statements is TRUE with respect to fixed costs per unit? They will increase as production decreases They will decrease as production decreases They will remain the same as production levels change They will increase as production increases 5. Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. What are breakeven sales?  $11,000 $4,714 $3,300 $7,700 6. Fixed Company produces a single product selling for $30 per unit. Variable costs…

ANSWER ALL THE GIVEN ITEMS. Write “True” if the statement is true and write “False” if the statement is false.   2. A variable cost will change in total in proportion to changes in the level of activity.3. A fixed cost is constant per unit of product.4. Cost accumulation, cost allocation, and cost objects are interrelated.5. A variable cost remains constant per unit, though in total increases as activity levels increase.6. If volume increases, both total variables and total fixed costs will increase.7. Decrease in the level of activity will cause total variable and total fixed costs to decrease.8. When graphed, total variable costs and total fixed costs are both assumed to be linear withinthe relevant range.9. Fixed cost is constant in total amount regardless of changes in activity level within the relevantrange.10. Cost function is an express that mathematically links costs, their behavior, and their cost driver.11. As volume decreases within the relevant range, variable cost per unit…

The following diagram is a cost-volume-profit graph for a manufacturing company: ^ O Volume с Select the answer that best describes the labeled item on the diagram. A. Area CDE represents the area of net loss. B. Line AC graphs total fixed costs. C. Point D represents a point at which the profit is greater than zero. D. Line AC graphs total costs.

K The fixed costs from adding a second shift to a factory can best be described as a O A. curvi - linear cost function B. step variable-cost function OC. linear cost function OD. step fixed-cost function OE. fixed-step curve

When the total contribution margin is greater than total fixed costs, a company has Select one: a. Higher variable cost and fixed cost. b. A net loss c. Zero profit. d. Net income.

The break-even point is that level of activity where: Select one: Oa. profit equals to zero. Ob. total contribution margin equals the sum of variable cost plus fixed cost. Oc. variable cost equals fixed cost. d. sales revenue equals total variable cost. Oe. total revenue equals total fixed cost. Ne

Question 1 Answer: Question 2 a Total Manufacturing Costs: Variable Fixed Factory Overhead Total Cost Per Unit b Markup Percentage % Seling Price

classify each of the following costs of queen company in two ways: (a) as variable (v) or fixed costs (f): (b) as inventoriable costs (i) or period costs (p)

PLEASE ANSWER ALL. Write “True” if the statement is true and write “False” if the statement is false A fixed cost is constant per unit of product. Cost accumulation, cost allocation, and cost objects are interrelated. A variable cost remains constant per unit, though in total increases as activity levels increase.

On an income statement prepared using variable costing, to calculate contribution margin, a company will subtract what from sales?   Question options:   a)  variable manufacturing costs.   b)  variable manufacturing and operating costs.   c)  variable cost of goods sold.   d)  cost of goods sold.

Problem 3-17A (Algo) Determining the break-even point and preparing a contribution margin income statement LO 3-1 Ritchie Manufacturing Company makes a product that it sells for $150 per unit. The company incurs variable manufacturing costs of $76 per unit. Variable selling expenses are $14 per unit, annual fixed manufacturing costs are $352.000, and fixed selling and administrative costs are $266,000 per year. Required Determine the break-even point in units and dollars using each of the following approaches: a. Use the equation method. b. Use the contribution margin per unit approach. c. Use the contribution margin ratio approach. d. Prepare a contribution margin income statement for the break-even sales volume.

1. What type of cost includes product ingredients and materials? a. fixed c. total b. revenue d. variable 2. What type of cost includes the rental of space? a. fixed c. total b. revenue d. variable 3. What type of cost is the product of the price and the quantity sold? a. fixed c. total b. revenue d. variable 4. What concept is being described when the business will neither earn a profit nor suffer a loss? a. break-even c. profit b. loss d. summit 5. What type of analysis shows equal revenue and total cost? a. break-even c. profit-loss b. cost of variable d. volume of sales Read the selection for questions 6-10. Junedyl is planning to run a coffee shop where he plans to sell each cup of coffee at 50.00. The ₱ fixed cost that is amounting to 40,000.00 includes all his expenses for the rent, wages, basic needs and others. ₱ So even if Junedyl will not be able to sell, he is still obliged to pay this amount. If it costs Junedyl an average of 10.00 for every cup of coffee which is allotted…