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This question has five parents:

1. Variable costs in total increase or decrease in proportionwith changes in the level of business activity:
a. true b. false

2. Variable cost per unit remains constant when the number ofunits produced changes:
a. true b. false

3. Fixed cost per unit remains the same even though there is achange in the number of units produced:
a. true b. false

4. Managerial accounting stresses accounting concepts andprocedures that are relevant to preparing reports for:
a. investors and banks
b. internal users of accounting information
c. shareholders and creditors
d. the Security and Exchange Commission (SEC)

5. Kilwin’s Candies produced and sold 600 boxes of chocolatecovered popcorn last month and had total variable costs of $2,100that reflected the cost of chocolate and popcorn (ingredients).Each box of popcorn for $12.00. If production and sales areexpected to increase by 10% next month, which of the followingstatements are true?
a. Total variable costs are expected to be $1,785.
b. Variable cost per unit is expected to be $3.50.
c. Unit variable costs are expected to be $2.10.
d. Total fixed costs will be $150,000.

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Lelia Lubowitz
Lelia LubowitzLv2
28 Sep 2019

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Related questions

This question has five parts:

1. Production material costs are generally fixedcosts:
a. true b. false

2. The primary functions of manufacturing accounting isplanning, controlling, and budgeting:
a. true b. false

3. Which of the following is an example cost that is variablewith respect to the number of units produced:
a. rent on the administrative office building
b. rent on the factory building
c. direct labor cost
d. salaries of top marketing executives

4. Financial accounting stresses accounting concepts andprocedures that are relevant to preparing reports for internalusers of accounting information:
a. true b. false

5. The goal of managerial accounting is to provide informationfor planning, controlling, and reporting information toshareholders:
a. true b. false

18. To calculate budgeted direct labor costs, multiply thenumber of units to be produced by the number of projected directlabor hours. Next, multiply that total by the average direct costper hour.

True

False

22. A flexible budget summarizes revenues and costs for variouslevels of sales volume within a relevant range.

True

False

29. A cost variance measures the difference in quantities ofactual inputs used and the standard quantity of inputs allowed forthe actual number of units produced.

True

False

32. Unfavorable variances are subtracted from each other toarrive at a favorable variance.

True

False

34. A direct labor cost variance is unfavorable if the employerpays workers more per hour than budgeted.

True

False

36. In a standard cost system, the manufacturing overheadallocated to production equals the standard overhead allocationrate multiplied by the standard quantity of the allocation baseallowed for expected output.

True

False

37. The direct materials cost and efficiency variances make upthe total direct materials variance.

True

False

41. Which of the following statements is true of absorptioncosting?

A) It considers variable selling and administrative costs asproduct costs.

B) It considers fixed selling and administrative costs asproduct costs.

C) It considers fixed manufacturing overhead cost as productcosts.

D) It considers variable manufacturing overhead cost as periodcosts.

42) Which of the following is true of the traditional format ofthe income statement?

A) It is prepared under the variable costing method.

B) It shows contribution margin as a line item.

C) It is not allowed under GAAP.

D) It is prepared under the absorption method.

43) Unit product cost calculations using absorption costing donot include ________.

A) fixed manufacturing overhead

B) variable manufacturing overhead

C) variable selling and administrative costs

D) direct materials

85. Provide responses to the following questions regarding thediscount rate.

Question? Your response

What does the discount rate represent?

What are other names for the discount rate?

Is the following statement true? Discuss the reason for yourresponse. "The higher the risk, the lower the discount rate."

If variable costs per unit increased because of an increase in hourly wage rates, the break-even point would:

a. increase.
b. remain the same.
c. decrease.

d. increase or decrease, depending upon the percentage increase in wage rates.

Zeke Company sells 25,000 units at $21 per unit. Variable costs are $10 per unit, and fixed costs are $75,000. The contribution margin ratio and the unit contribution margin are:

a. 53% and $7 per unit.
b. 47% and $11 per unit.
c. 52% and $11 per unit.

d. 47% and $8 per unit.

If sales are $500,000, variable costs are 75% of sales, and operating income is $40,000, what is the operating leverage?

a. 0
b. 1.3
c. 3.1

d. 1.25

Which of the following describes the behavior of the fixed cost per unit?

a. Increases with increasing production
b. Remains constant with changes in production
c. Decreases with increasing production

d. Decreases with decreasing production

If variable costs per unit decreased because of a decrease in utility rates, the break-even point would:

a. increase.
b. increase or decrease, depending upon the percentage increase in utility rates.
c. decrease.

d. remain the same.

Costs that vary in total in direct proportion to changes in an activity level are called:

a. differential costs.
b. fixed costs.
c. variable costs.

d. sunk costs

Which of the following conditions would cause the break-even point to increase?

a. Total fixed costs decrease
b. Unit variable cost decreases
c. Unit variable cost increases

d. Unit selling price increases

In cost-volume-profit analysis, all costs are classified into the following two categories:

a. discretionary costs and sunk costs
b. variable costs and fixed costs
c. mixed costs and variable costs
d. sunk costs and fixed costs

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