Question
Need help with these multiple choice questions. Please state reason for the correct option too 1. Which of the following should a management team should
Need help with these multiple choice questions. Please state reason for the correct option too
1. Which of the following should a management team should review to analyze a fixed cost variance?
A. The sales volume variance for fixed costs
B. The flexible budget variance for fixed costs
C. Both A and B above
D. None of the above
9. Which of the following alternatives would a logical and sensible investor choose?
A. Borrow money with an interest rate of 7% with monthly compounding, rather than borrowing money with an interest rate of 7% with annual compounding
B. Invest money with an interest rate of 5% with annual compounding, rather than investing money with an interest rate of 5% with monthly compounding
C. Borrow money with an interest rate of 9% with quarterly compounding, rather than borrowing money with an interest rate of 9% with semiannual compounding
D. Invest money with an interest rate of 5% with quarterly compounding, rather than investing money with an interest rate of 5% with semiannual compounding
10. Which of the following will increase the breakeven units for a company?
A. A $1 decrease in the variable costs per unit and a $20,000 decrease in fixed costs
B. A $3 increase in the selling price per unit and a $1 decrease in the variable costs per unit
C. A $2 increase in the variable costs per unit and a $1 increase in the selling price per unit
D. A $5 increase in the selling price per unit and a $20,000 decrease in fixed costs
13. Which of the following costs should not be included by Kassems Soup Restaurant in its capital budgeting analysis to determine whether to add sandwiches to its current menu of all soup?
A. $5,800 in lost sales from customers who were expected to buy soup and are now expected to buy sandwiches
B. $3,500 in advertising costs related to launching the sandwich line
C. $900 in sandwich inventory as part of the initial cash flow
D. $ 1,700 in costs previously spent on a market research study related to customer sandwich buying patterns
21. Which of the following is a period cost for a computer manufacturer:
A. Wages for assembly line workers
B. Glue for computers
C. Rent for factory building
D. None of the above
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