Question 1(1 point)
A publisher sells a calendar for $6.50. The variable cost per calendar is $3 at the current annual sales volume of 200,000 calendars; at this volume the publisher is just breaking even. What are the fixed costs?:
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Question 2(1 point)
Straight-line depreciation on a building would best be classified as a
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Question 3(1 point)
The paper costs of a printing shop would best be classified as a:
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| C) | discretionary fixed cost. |
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Question 4(1 point)
If the fixed costs for a product decrease and the per unit variable costs decrease, what will be the effect on the contribution margin and the breakeven point, respectively?
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Question 5(1 point)
The Blue Company is planning to sell product Z for $5 a unit. Variable costs are $3 a unit and fixed costs are $100,000. What must the total sales be to break even?
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Question 6(1 point)
Employee salaries which consist of a $35,000 base amount plus 12% of sales would best be classified as a:
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| B) | committed fixed cost.. |
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| C) | discretionary fixed cost. |
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Question 7(1 point)
Within a "relevant range," which of the following statements about fixed costs is true?
Question 7 options:
| A) | Fixed costs are constant per unit of production. |
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| B) | Fixed costs per unit will fall as production rises. |
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| C) | Total fixed costs change as production volume changes |
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| D) | Fixed costs are costs which are paid uniformly over a year |
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Question 8(1 point)
Which of the following statements about variable costs is true?
Question 8 options:
| A) | Per unit variable costs are constant. |
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| B) | Per unit variable costs always increase as production increases. |
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| C) | Per unit variable costs always decrease as production increases. |
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| D) | Variable costs are always product costs |
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Question 9(1 point)
Budgetary slack refers to the:
Question 9 options:
| A) | use of padding to avoid unfavorable appraisals. |
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| B) | increasing of sales prices to cover budget deficits. |
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| C) | budgeted profit margin. |
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| D) | "Other expenses" item of the budget |
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Question 10(1 point)
The budgeting process would normally begin with the preparation of a:
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| B) | capital expenditure budget. |
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Question 11(1 point)
A company began operations on January 1 with cash of $75,000. January sales were $150,000. No collections occurred. Cost of goods sold is $40,000, and there are no ending inventories or payables. How much cash was on hand at the end of January?
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Question 12(1 point)
Another name for "pro forma financial statements" would be:
Question 12 options:
| A) | computer generated financial statements. . |
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| B) | projected financial statements |
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| C) | historical cost financial statements |
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| D) | external use financial statements |
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Question 13(1 point)
What term identifies an accounting system in which the operations of the business are broken down into cost centers and the control function of a manager or supervisor is emphasized?
Question 13 options:
| A) | Responsibility accounting. |
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| B) | Operations-research accounting. |
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Question 14(1 point)
A performance report would provide information about:
Question 14 options:
| A) | budgeted income statement item amounts. |
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| B) | actual income statement item amounts. |
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| C) | variances between budgeted and actual income statement item amounts. |
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Question 15(1 point)
A continuous budget typically:
Question 15 options:
| A) | drops completed months and adds future months as time passes. |
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| B) | is known as pro forma budgeting. |
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| C) | is a top-down approach with management constantly issuing budget edicts. . |
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| D) | eliminates the need for periodic bank reconciliations |
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