PART I (20 Points, 1 Points each) Multiple Choice: Indicate the answer that best completes the…

PART I (20 Points, 1 Points each) Multiple Choice: Indicate the answer that best completes the…

pening statement. 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. 2. A cost which remains constant in total at various levels of activity is a a. variable cost. b. fixed cost. c. mixed cost. d. manufacturing cost. 3. Which of the following costs are variable? Cost 10,000 Units 30,000 Units 1. $100,000 $300,000 2. 40,000 240,000 3. 90,000 90,000 4. 50,000 150,000 a. 1 and 2. b. 1 and 4. c. only 1. d. only 2. 4. The high-low method is often employed in analyzing a. fixed costs. b. mixed costs. c. variable costs. d. conversion costs. 5. Contribution margin a. is always the same as gross profit margin. b. excludes variable selling costs from its calculation. c. is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. d. equals sales revenue minus variable costs. 6. If a company had a contribution margin of $150,000 and a contribution margin ratio of 40%, total variable costs must have been a. $225,000. b. $90,000. c. $375,000. d. $60,000. 7. A company has contribution margin per unit of $12 and a contribution margin ratio of 40%. What is the unit selling price? a. $20.00. b. $30.00. c. $4.80. d. Cannot be determined. 8. Sales are $250,000 and variable costs are $175,000. What is the contribution margin ratio? a. 43% b. 30% c. 70% d. cannot be determined because amounts are not expressed per unit. 9. A company has total fixed costs of $150,000 and a contribution margin ratio of 20%. The total sales necessary to break even are a. $600,000. b. $750,000. c.

 

Is this the question you were looking for? If so, place your order here to get started!