Workshop 6 - Exam 3

# Workshop 6 - Exam 3 - Grade Delivery Page 1 of 12 Points...

This preview shows pages 1–4. Sign up to view the full content.

Points Awarded 86.00 Points Missed 14.00 Percentage 86.0% 1. A variable cost is a cost that A) varies per unit at every level of activity. B) occurs at various times during the year. C) varies in total in proportion to changes in the level of activity. D) may or may not be incurred, depending on management's discretion. Points Earned: 2.0/2.0 Correct Answer(s): C 2. A cost which remains constant per unit at various levels of activity is a A) variable cost. B) fixed cost. C) mixed cost. D) manufacturing cost. Points Earned: 2.0/2.0 Correct Answer(s): A 3. Fixed costs normally will not include A) property taxes. B) direct labor. C) supervisory salaries. D) depreciation on buildings and equipment. Points Earned: 2.0/2.0 Correct Answer(s): B 4. If the activity level increases 10%, total variable costs will A) remain the same. B) increase by more than 10%. C) decrease by less than 10%. D) increase 10%. Points Earned: 2.0/2.0 Correct Answer(s): D Page 1 of 12 Grade Delivery 12/10/2009 https://lms.bvu.edu/Section/Assessment/Question/GradeDelivery.aspx?entryId=724ad589. ..

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
5. Changes in activity have a(n) _________ effect on fixed costs per unit. A) positive B) negative C) inverse D) neutral Points Earned: 2.0/2.0 Correct Answer(s): C 6. At the high level of activity in November, 7,000 machine hours were run and power costs were \$12,000. In April, a month of low activity, 2,000 machine hours were run and power costs amounted to \$6,000. Using the high-low method, the estimated fixed cost element of power costs is A) \$12,000. B) \$6,000. C) \$3,600. D) \$8,400. Points Earned: 2.0/2.0 Correct Answer(s): C 7. Which of the following is not a mixed cost? A) Car rental fee B) Electricity C) Depreciation D) Telephone Expense Points Earned: 2.0/2.0 Correct Answer(s): C 8. Clark Company produces flash drives for computers, which it sells for \$20 each. Each flash drive costs \$12 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were \$2 per unit for a total of \$1,000 for the month. How much is the contribution margin ratio? A) 30% B) 40% C) 60% D) 70% Points Earned: 2.0/2.0 Correct Answer(s): B 9. Sonoma Winery has fixed costs of \$10,000 per year. Its warehouse sells wine with variable costs of 80% of its unit selling price. How much in sales does Sonoma need to break even per year? Page 2 of 12 Grade Delivery 12/10/2009 https://lms.bvu.edu/Section/Assessment/Question/GradeDelivery.aspx?entryId=724ad589. ..
A) \$8,000 B) \$2,000 C) \$12,500 D) \$50,000 Points Earned: 0.0/2.0 Correct Answer(s): D 10. A company sells a product which has a unit sales price of \$5, unit variable cost of \$3 and total fixed costs of \$120,000. The number of units the company must sell to break even is A) 60,000 units. B) 24,000 units.

This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document
This is the end of the preview. Sign up to access the rest of the document.

## This note was uploaded on 09/24/2011 for the course MGMT 201 taught by Professor Parkin during the Fall '10 term at Buena Vista.

### Page1 / 12

Workshop 6 - Exam 3 - Grade Delivery Page 1 of 12 Points...

This preview shows document pages 1 - 4. Sign up to view the full document.

View Full Document
Ask a homework question - tutors are online