AC202quiz6Trammell

AC202quiz6Trammell - range. C. Variable costs per unit of...

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AC 202 Principles of Accounting II Name: Barbie Trammell 574931 Park University Version D Quiz 6 D-Chapter 22 Multiple Choice Questions ( 10 points each ) Select the ONE, BEST Answer 1. A cost that remains the same in total even when volume of activity varies is a: A. Fixed cost. B. Curvilinear cost. C. Variable cost. D. Step-wise variable cost. E. Standard cost. 2. An important tool in predicting the volume of activity, the costs to be incurred, the sales to be earned, and the profit to be received is: A. Target income analysis. B. Cost-volume-profit analysis. C. Least-squares regression of costs. D. Variance analysis. E. Process costing. 3. Cost-volume-profit analysis is based on three basic assumptions. Which of the following is not one of these assumptions? A. Total fixed costs remain constant over changes in volume. B. Curvilinear costs change proportionately with changes in volume throughout the relevant
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Unformatted text preview: range. C. Variable costs per unit of output remain constant as volume changes. D. Sales price per unit remains constant as volume changes. E. All of these are basic assumptions. 4. The excess of expected sales over the sales level at the break-even point is known as the: A. Sales turnover. B. Profit margin. C. Contribution margin. D. Relevant range. E. Margin of safety. Problem ( 60 Points ) SHOW ALL WORK!!!!!!!! A company manufactures a product and sells it for $120 per unit. The total fixed costs of manufacturing and selling the product are expected to be $155,250, and the variable costs are expected to be $75 per unit. What is the company's break-even point in (a) units and (b) dollar sales? $120 - $75 = $45 Contribution Margin Fixed Cost = $155,250 BEP in units = 155,250 / 45 =3,450 BEP in sales = 3,450 * 120 = $414,000...
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This note was uploaded on 08/10/2011 for the course AC 202 taught by Professor Nancyeverett during the Spring '09 term at Park.

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AC202quiz6Trammell - range. C. Variable costs per unit of...

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