Question
7-Which of the following describes the way fixed costs per unitbehave? A. They will remain the same as production levels change. B. They will decrease
7-Which of the following describes the way fixed costs per unitbehave?
A.They will remain the same as production levels change.
B.They will decrease as production decreases.
C.They will increase as production increases.
D.They will increase as production decreases.
8-What does a favourable direct materials price varianceindicate?
A.The actual quantity of materials used was less than the standard quantity of materials used for actual production.
B.The standard cost of materials purchased was less than the actual cost of materials purchased.
C.The standard cost of materials purchased was greater than the actual cost of materials purchased.
D.The actual cost of materials purchased was greater than the standard cost of materials purchased.
9-Mountaintop golf course is planning for the coming season. Investors would like to earn a12% return on thecompany's $45 million of assets. The company primarily incurs fixed costs to groom the greens and fairways. Fixed costs are projected to be$20,000,000 for the golfing season. About400,000 golfers are expected each year. Variable costs are about$15 per golfer.
Using a costplus approach, what price should Mountaintop charge for a round ofgolf?
A.$51.50
B.$78.50
C.$71.00
D.$ 0.21
10-Gas Country is considering selling premium gasoline. It already sells regular for$1.22/litre and would sell premium gasoline for$1.28/litre. The cost to further refine the regular gas into premium would be$.02/litre. A cost that would not be considered in this decision would be
A.the extra revenue generated by selling premium.
B.the opportunity cost of the regular gasoline.
C.the cost of further processing the regular gas into premium gas.
D.the cost of refining the regular gasoline.
12-Zevok Company budgeted$4 million for customer servicecosts, but actually spent only$3 million. Which of the following statements is the best course of action for management to take in thisinstance?
A.Management should not investigate every majorvariance, especially the unfavourable ones.
B.Management will investigate this$1 million unfavourable variance to try to identify and correct the problem.
C.Because this$1 million variance isfavourable, management does not need to investigate further.
D.Management will investigate this$1 million favourable variance to ensure that the cost savings do not reflect skimping on customer service.
13-Signs that a product cost system is not working properly include
A.the cost system has multiple allocation bases.
B.the cost system was installed five years ago.
C.the cost system is fully depreciated.
D.managersdon't understand costs and profits.
-Just answer if you're 100% sure about the Correct Letter for each question, please
-Dont Explain at all please, Just the correct letter for each question without any explanation at all, and I'll put a like.
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