I had finished the most of the assignment but not really sure if my answer is correct especially about ABC and CVP.

1. Which of the following tasks is not normally associated with an ABC costing system? A. Calculation of pool rates. B. Identification of cost pools. C. Preparation of allocation matrices. D. Identification of cost drivers. 2. The relationship between cost and activity is termed: A. cost estimation. B. cost prediction. C. cost behavior. D. cost analysis 3. Which of the following costs changes in direct proportion to a change in the activity level? A. Variable cost B. Fixed cost C. Semivariable cost D. Step-variable cost 4. Montgomery Company has a variable selling cost. If sales volume increases, how will the total variable cost and the variable cost per unit behave? A. Choice A B. Choice B C. Choice C D. Choice D 5. CVP analysis can be used to study the effect of: A. changes in selling prices on a company's profitability. B. changes in variable costs on a company's profitability. C. changes in fixed costs on a company's profitability. D. changes in product sales mix on a company's profitability. E. All of these. 6. The break-even point is that level of activity where: A. total revenue equals total cost. B. variable cost equals fixed cost. C. total contribution margin equals the sum of variable cost plus fixed cost. D. sales revenue equals total variable cost. 7. Under variable costing, fixed manufacturing overhead is: A. expensed immediately when incurred. B. never expensed. C. applied directly to Finished-Goods Inventory. D. applied directly to Work-in-Process Inventory. 8. All of the following are inventoried under variable costing except: A. direct materials. B. direct labor. C. variable manufacturing overhead. D. fixed manufacturing overhead. 9. All of the following costs are inventoried under absorption costing except: A. direct materials. B. direct labor. C. variable manufacturing overhead. D. fixed manufacturing overhead. E. fixed administrative salaries. 10. Plaza Corporation observed that when 25,000 units were sold, a particular cost amounted to $70,000, or $2.80 per unit. When volume increased by 15%, the cost totaled $80,500 (i.e., $2.80 per unit). The cost that Plaza is studying can best be described as a: A. variable cost. B. fixed cost. C. semivariable cost. D. discretionary fixed cost. E. step-fixed cost. 11. Roberts, which began business at the start of the current year, had the following data: Planned and actual production: 40,000 units Sales: 37,000 units at $15 per unit Production costs: Variable: $4 per unit Fixed: $260,000 Selling and administrative costs: Variable: $1 per unit Fixed: $32,000 The gross margin that the company would disclose on an absorption-costing income statement is: A. $97,500. B. $147,000. C. $166,500. D. $370,000. 12. Which of the following would produce the largest increase in the contribution margin per unit? A. A 7% increase in selling price. B. A 15% decrease in selling price. C. A 14% increase in variable cost. D. A 17% decrease in fixed cost. 13. Consider the following statements about absorption costing and variable costing: I. Variable costing is consistent with contribution reporting and cost-volume-profit analysis. II. Absorption costing must be used for external financial reporting. III. A number of companies use both absorption costing and variable costing. Which of the above statements is (are) true? A. I only. B. II only. C. III only. D. I and II. E. I, II, and III. 14. The unit contribution margin is calculated as the difference between: A. selling price and fixed cost per unit. B. selling price and variable cost per unit. C. selling price and product cost per unit. D. fixed cost per unit and variable cost per unit. 15. When graphed, a typical variable cost appears as: A. a horizontal line. B. a vertical line. C. a u-shaped line. D. a diagonal line that slopes upward to the right 16. When the balance of FGI increases, which costing method will have the highest amount of net income for that period? A. variable costing B. absorption costing C. net income will be the same under both methods D. none of the above 17. When graphed, a typical fixed cost appears as: A. a horizontal line. B. a vertical line. C. a u-shaped line. D. a diagonal line that slopes downward to the right. 18. The underlying difference between absorption costing and variable costing lies in the treatment of: A. direct labor. B. variable manufacturing overhead. C. fixed manufacturing overhead. D. variable selling and administrative expenses. 19. Which of the following would take place if a company experienced an increase in fixed costs? A. Net income would increase. B. The break-even point would increase. C. The contribution margin would increase. D. The contribution margin would decrease. E. More than one of the above 20. Lone Star has computed the following unit costs for the year just ended: Under variable costing, each unit of the company's inventory would be carried at: A. $35. B. $55. C. $65. D. $84. E. some other amount. ABC Problem GLAZIER SYSTEMS Glazier Systems, Inc., makes gliders for sale through specialty sporting goods stores. The company has a standard glider model, but also produces custom-designed gliders. Glazier management has designed an activity-based costing system with the following activity cost pools and activity rates: Activity Cost Pool Supporting Manufacturing Order processing Custom designing Customer service Activity Rate $18 per direct labor hour $192 per order $261 per custom design $426 per customer Management would like an analysis of the profitability of a particular customer, Montana Wings, which has ordered the following products over the last 12 months: Standard Model Number of gliders Number of orders Number of custom designs Director labor hours per glider Selling price per glider Direct materials cost per glider 10 1 0 28.5 $1,650 $462 Custom Design 2 2 2 32.0 $2,300 $576 The company's direct labor rate is $19 per hour. Assignment: A. Using the company's activity-based costing system, compute the customer margin (customer profit) of Montana Wings. Cost-Volume-Profit Problem Seventh Heaven takes tourists on helicopter tours of Hawaii. Each tourist buys a $150 ticket; the variable costs average $60 per person. Seventh Heaven has annual fixed costs of $702,000. Required: A. How many tours must the company conduct in a month to break even? B. Compute the sales revenue needed to produce a target net profit of $36,000 per month. C. Calculate the contribution margin ratio. D. Determine whether the actions that follow will increase, decrease, or not affect the company's break-even point. 1. A decrease in tour prices. 2. The termination of a salaried clerk (no replacement is planned). 3. A decrease in the number of tours sold. Cost-Volume-Profit Problem Archie sells a single product for $50. Variable costs are 60% of the selling price, and the company has fixed costs that amount to $400,000. Current sales total 16,000 units. Archie: A. will break-even by selling 8,000 units. B. will break-even by selling 13,333 units. C. will break-even by selling 20,000 units. D. will break-even by selling 1,000,000 units. E. cannot break-even because it loses money on every unit sold