11. Food 4 Less is a mobile food truck that sells lunches in the corporate area. The company estimates that for the month of May the total number of lunches to be sold is 2,000 boxes. One box lunch sells for $90 and has a variable cost of $40. Total Fixed cost for the company is $85,000. What is the company's margin of safety in units for the month of May?

a.300

b.1700

c.2000

d.100

13. The following are budgetary data:

Production (units)

April 800

May 900

June 1,000

One pound of material is required to manufacture one product. The inventory of materials at the end of each month should equal 10% of the following month's production needs. Purchases of raw materials for May should be (pounds):

a.

920

b.

940

c.

950

d.

910

14. All of the following are characteristics of management accounting EXCEPT it is:

a.focuses on small parts of the organization

b.mandatory to produce annual financial reports

c.not required to adhere to financial standards

d.concerned with future information

15. Which of the following cost represents a committed fixed cost?

a.sales promotion

b.research and development

c.lease payment

d.staff training

16. Rock-Wid-It produces wooden rocking chairs. The management accountant wants to ascertain the prime cost from the following list of costs below:

Direct labour $74,000

Indirect labour $22,000

Direct material $63,000

Factory overhead $27,000

What is the prime cost?

a.

$101,000

b.

$159,000

c.

$137,000

d.

$123,000

17. Period cost could be all of the following EXCEPT:

a.incurred as a result of sales

b.allocated to material and labour

c.tied to inventory

d.included in product costs

18. A company produces and sells one product. The contribution margin ratio is 25% and the total fixed cost is $200,000. What is the breakeven in revenue?

a.$840,000

b.$800,000

c.$960,000

d.$760,000