The break-even point is the point at which a business entity?

Group of answer choices

None of the choices given

Makes only losses

Makes no profit nor incurs any losses

Makes the maximum profit

Flag question: Question 2

Question 22pts

All of the following statements regarding budgeting is true except

Group of answer choices

The focus of budgeting is planning.

Budgeting is a key ingredient in good decision-making.

Budgeting helps managers determine the resources needed to meet their goals andobjectives.

Budgeting is a bookkeeping task

Flag question: Question 3

Question 32pts

Marginal cost is computed as

Group of answer choices

none of the choices given

Total costs - All fixed overheads

Direct material + Direct labor + Direct Expenses + All variable overheads

Prime cost + All Variable overheads

Flag question: Question 4

Question 42pts

Which phrase best describes the current role of the managerial accountant?

Group of answer choices

Managerial Accountants are solely staff advisors in an organization.

Managerial accountants are primarily information collectors.

Managerial accountants make the key decisions within an organization.

Managerial accountants facilitate the decision-making process within an organization.

Flag question: Question 5

Question 52pts

Under absorption costing among fixed expenses

Group of answer choices

Fixed non-manufacturing expenses are included in unit cost

none of the choices given

variable manufacturing expenses are excluded in unit cost

Fixed manufacturing expenses are included in unit cost

Flag question: Question 6

Question 62pts

The margin of safety for PQR Ltd is 2,500 units. The current level of output is 15,000 units. Which of the following statements are true?

1. The company is making a profit

2. The company is making a loss

3. The BEP in units is 20,000

4. The BEP in units is 12,500

Group of answer choices

(2) and (4) only

(1) only

(1) and (4) only

(2) and (3) only

Flag question: Question 7

Question 72pts

As production increases within the relevant range,

Group of answer choices

variable costs will vary on a per unit basis.

variable costs will vary in total.

fixed and variable cost stay the same in total.

fixed costs will vary in total.

Flag question: Question 8

Question 82pts

Mariakani Ltd budgets to produce two products, Alpha & Beta in the ratio of 3:2 respectively. You are provided with the info below:

AlphaBeta

Selling price per unit500400

Variable cost per unit300240

The budgeted fixed costs are Shs 368,000

Required: Determine the number of units of Alpha & Beta to produce in order to break-even

Group of answer choices

1,200 units of Alpha & 800 units of Beta

2,000 units of Alpha and 1,333 units of Beta

800 units of Alpha & 1,200 units of Beta

2,000 units of each product

Flag question: Question 9

Question 92pts

Coed Novelties manufactures key chains for college bookstores. During 2003, the company had the following costs:

Direct materials used$ 31,000

Direct labor18,000

Factory rent12,000

Equipment deprecation - factory2,000

Equipment depreciation - office750

Marketing expense2,500

Administrative expenses40,000

35,000 units produced were in 2003. What is the product cost per unit?

Group of answer choices

approximately $1.24

$1.40

$1.80

approximately $1.82

Flag question: Question 10

Question 102pts

You are provided with the information below over a 6 month period for Malindi Ltd.Compute the variable cost per unit using the high-low method

Output (units)

20

15

22

14

16

13

Maintenance costs (Sh 000)

210

160

215

145

180

150

Group of answer choices

8.57

none of the choices given

7.22

8

Flag question: Question 11

Question 112pts

The Cape Cod Cotton Candy Company had the following information available regarding

last year's operations:

Sales (100,000 units)$200,000

Variable costs100,000

Contribution margin100,000

Fixed costs50,000

Net Income50,000

If sales were to increase by 200 units, what would be the effect on net income?

Group of answer choices

$100 increase

$200 increase

$150 increase

$400 increase

Flag question: Question 12

Question 122pts

You are provided with the following details for Pagomo Ltd :

Selling price per unit - Shs 300

Variable cost per unit - Shs 180

Total fixed costs - Shs 450,000

Current level of output - 5,000 units

What is the break-even point (BEP) in units?

Group of answer choices

1,500

2,500

90

3,750

Flag question: Question 13

Question 132pts

Bubblemania has three product lines - A, B, and C.

ABCTotal

Sales$10,0009,00012,00031,000

Variable costs4,5007,0006,00017,500

Contribution Margin5,5002,0006,00013,500

Fixed costs3,5006,0003,00012,500

Net income2,000(4,000)3,0001,000

Product line B appears unprofitable, and management is considering discontinuing the line. How

would the discontinuation of Product line B affect net income?

Group of answer choices

decrease by $2,000

increase by $4,000

decrease by $4,000

increase by $2,000

Flag question: Question 14

Question 142pts

Kwale Ltd commenced operation in January 2019. The company produced 10,000 units of output, out of which 8,400 were sold The costs incurred were as below:

Shs

Direct material600,000

Direct Labour400,000

Variable production overheads300,000

Fixed Production overheads200,000

Variable admin & selling overheads150,000

Fixed admin & selling overheads100,000

Determine the value of closing stockbased on absorption costing principles

Group of answer choices

280,000

none of the choices given

240,000

208,000