Quiz_Lesson_13_Solutions

Quiz_Lesson_13_Solutions - Lesson 13 Basic Assumption for...

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Lesson 13 Basic Assumption for Quiz: Assume we are working within the relevant range. 1. ( T / F ) As production increases, variable costs per unit decrease. 2. ( T / F ) As production increases, total fixed costs remain the same. 3. ( T / F ) As production increases fixed costs per unit decrease. 4. ( T / F ) Direct materials typically are a fixed cost. 5. ( T / F ) Mixed costs contain both variable and fixed elements. 6. Matching: a) Line AF:___2___ 1. Total Var. Cost line b) Slope of AF: ___5___ 2. c) Line BE:___3___ 3. Sales Revenue Line d) Slope of BE: ___6___ 4. Total Profit line e) Point A: ___10___ 5. Var. Cost/unit f) Point C: ___12___ 6. Sales Price/unit g) Distance between pts. at production level D: _11_ 7. Fixed Cost/unit h) If there were a line parallel to AF, intersecting 8. Total Cost/unit the origin it would be the : ___1___ 9. Sales Revenue/unit 10. Total Fixed Costs 11. Profit (NI) or loss 12. Breakeven Point 7. GRAPHING THE COST LINE: HIGH-LOW METHOD Month Volume Cost Jan 4,200 $22,000 Feb 2,000 $14,000 Mar 3,600 $18,000 Apr 5,000 $26,000 a) Find the variable cost per unit: VC/unit (slope) = (26,000-14,000)/(5,000-2,000) = $12,000/3,000 unit = $4/unit
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This note was uploaded on 12/02/2011 for the course ACC 200 taught by Professor Normnemrow during the Spring '09 term at BYU.

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Quiz_Lesson_13_Solutions - Lesson 13 Basic Assumption for...

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