Accounting Help - Practice Questions Essay

4294 Words Feb 13th, 2012 18 Pages
Chapter 18: Practice questions

1-1 The total manufacturing cost per unit increases as total production volume increases.

1-2 Total variable costs change in response to changes in the volume of production.

1-3 The mixed cost per unit is constant throughout the relevant range of activity.

1-4 Fixed costs per unit decrease as production levels decrease.

1-5 A method used to separate mixed costs into fixed and variable components is called the high-low method.

1-6 The variable cost per unit is assumed to be constant within a particular relevant range of activity.

1-7 Which of the following costs changes in direct proportion to a change in volume? A) Average mixed cost B) Total fixed cost
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If your current bill is $25.00, how many minutes did you use? A) 250 minutes B) 100 minutes C) 200 minutes D) 150 minutes

1-19 Jenny was reviewing the water bill for her doggy day spa and determined that her highest bill, $3,000, occurred in July when she washed 2,000 dogs and her lowest bill, $2,000, occurred in November when she washed 1,000 dogs. What was the variable cost per dog wash associated with Jenny's water bill? A) $.67 B) $1.00 C) $0.50 D) $2.00

1-20 Jenny was reviewing the water bill for her doggy day spa and determined that her highest bill, $3,000, occurred in July when she washed 2,000 dogs and her lowest bill, $2,000, occurred in November when she washed 1,000 dogs. What was the fixed cost associated with Jenny's water bill? A) $1,500 B) $3,000 C) $1,000 D) $2,000

1-21 Dakota Company provides the following information about its single product:
|Targeted operating income |$40,000 |
|Selling price per unit |$3.50 |
|Variable cost per unit |$1.05 |
|Total fixed
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