2025-2026 Module 2 Practice Exam Verified & Fully Solved
Which costs will change within a decrease in activity within the relevant range? answerUnit fixed costs
and total variable costs
Within the relevant range, the variable cost per unit: answerRemains constant as activity changes
An increase in the activity level within the relevant range results in: answerA decrease in fixed cost per
unit
The following data for a production department relate to two accounting periods:
Activity (machine-hours) $17,000 $18,500
Department Costs $246,500 $251,750
The best estimate of the fixed departmental cost is closest to: answer$187,000
North Company sells a single product. The product has a selling price of $30 per unit and variable
expenses of 70% of sales. If the company's fixed expenses total $60,000 per year, then it will have a
break-even of: answer$200,000
Jatry Corporation's budget sales are $300,000, its budgeted variable expenses are $210,000, and its
budgeted fixed expenses are $60,000. What is the company's break-even in dollar sales amount?
answer$200,000
The following data pertains to last month's operations:
Selling Price $20/unit
Variable production cost $12/unit
Which costs will change within a decrease in activity within the relevant range? answerUnit fixed costs
and total variable costs
Within the relevant range, the variable cost per unit: answerRemains constant as activity changes
An increase in the activity level within the relevant range results in: answerA decrease in fixed cost per
unit
The following data for a production department relate to two accounting periods:
Activity (machine-hours) $17,000 $18,500
Department Costs $246,500 $251,750
The best estimate of the fixed departmental cost is closest to: answer$187,000
North Company sells a single product. The product has a selling price of $30 per unit and variable
expenses of 70% of sales. If the company's fixed expenses total $60,000 per year, then it will have a
break-even of: answer$200,000
Jatry Corporation's budget sales are $300,000, its budgeted variable expenses are $210,000, and its
budgeted fixed expenses are $60,000. What is the company's break-even in dollar sales amount?
answer$200,000
The following data pertains to last month's operations:
Selling Price $20/unit
Variable production cost $12/unit
