For example, the fixed cost per minute used decreases as more allowed minutes are used.
As you make more and more allowed calls, the basic rate cost per call decreases. If your basic
rate is $39 per month and you make one allowed call per month, the avera
the project's internal rate of return is greater than the discount rate.
the relation between the rate of return and the discount rate is impossible to determine
from the g
Basics of Cost-Volume-Profit
The contribution income statement is helpful to managers
in judging the impact on profits of changes in selling price,
cost, or volume. The emphasis is on cost behavior.
Which of the following persons would occupy a line position in a
I. Sales manager
Principles of Accounting II Exam 1 -2010 Version
1-16. Decentralization refers to:
A. reporting for the company as a whole.
B. focusing reporting on parts of the company.
C. the delegation of decision-making authority throughout an organization.
Question 1: Score 2.5/5
Your response Correct response Exercise 7-1 Variable and Absorption Costing Unit Product Costs [LO1] Ida Sidha Karya Company is a family-owned company located in the village of Gianyar on the island of Bali in Indonesia. The compan
Acct 202 Exam 3 Review
The exam covers Chapter 6 and Chapter 7. You are responsible for all assigned material for these
chapters, including reading assignments, homework, class lectures and discussions, and other
materials your professor may have provided
AND COST CONCEPTS
Work of Management
Work of Management
1. Planning accounting focus on budgets
Select alternative that
Chapter 3: Cost Behavior: Analysis and Use.
Managers who understand how costs behave are better able to predict costs and make decisions
under various circumstances. This chapter explores the meaning of fixed, variable, and mixed
costs (the relative propo
The mixed cost line can be expressed with the equation Y = a + bX. This equation should look
familiar, from your algebra and statistics classes.
In the equation, Y is the total mixed cost; a is the total fixed cost (or the vertical intercept of the
Learning objective number 2 is to use a scattergraph plot to diagnose cost behavior.
A scattergraph plot (also called the quick-and-dirty method) is a quick and easy way to isolate
the fixed and variable components of a mixed cost.
The first step when usi
Learning objective number 3 is to analyze a mixed cost using the high-low method.
The high-low method can be used to analyze mixed costs if a scattergraph plot reveals a linear
relationship between the X and Y variables. For illustrative purposes, assume
Learning objective number 4 is to prepare an income statement using the
The contribution approach provides an income statement format geared directly to
cost behavior, which has been the focus of discussion in this chapter.
1. The general model for calculating a price variance is:
A. actual quantity of inputs (actual price - standard price).
B. standard price (actual quantity of inputs - standard quantity allowed for output).
C. (actual quantity of inputs at actual price) -
Test 1 Spring 2008 Chapters 1-3 Name: _
1. Managerial accounting:
A) is more future oriented than financial accounting.
B) tends to summarize information more than financial accounting
C) is primarily concerned with providing information to external
Variable costing income
Absorption costing income
Selling and Administrative
o Rely on contribution format
o Internal decision making
Costing method that is designed to
provide managers with cost
information for strategic decisions
that affect capacity
*Most but not all Manufacturing
Costs that differ between
Benefits that differ between
1. Irrelevant data can be
1. Schemm Inc. regularly uses material F04E and currently has in stock 460 liters
of the material for which it paid $2,622 several weeks ago. If this were to be sold
as is on the open market as surplus material, it would fetch $5.25 per liter. New
CM lost if Housekeeping Program is dropped
Fixed Costs that can be avoided:
Program Administrator's Salary
Decrease in NOI for the Organization
$430,000 X 10%
$540,000 X 70%
$540,000 X 10%
$600,000 X 20%
$600,000 X 70%
$600,000 X 10%
$500,000 X 20%
$500,000 X 70%
$500,000 X 10%
Static planning budget
No change- mortgage payment for
Prepared before the period begins
Salyers Family Inn is a bed and breakfast establishment in a converted 100-yearold mansion. The Inn's guests appreciate its gourmet breakfasts and individually
decorated rooms. The Inn's overhead budget for the most recent month appears