AC 202 FINAL EXAM Questions and
Answers 100% Pass | Rated A+
if a per-unit cost remains constant over a wide range of volume, the cost is
most likely a - ✔✔variable cost
the cost per unit decreases as volume increases for what cost behavior(s):
fixed, variable, mixed - ✔✔fixed and mixed costs
in the mixed cost equation what amount represents the total variable cost
component - ✔✔vx
equation: y=vx+f
what method is used to see if a relationship between the cost driver and
total cost exists - ✔✔scatter plot
what kind of cost is this: as production increases, total cost increases and
cost per unit stays the same - ✔✔variable costs
what kind of cost is this: as production increases, total cost remains the
same and cost per unit decreases - ✔✔fixed costs
what kind of cost is this: as production increases, total cost increases and
cost per unit increases - ✔✔mixed costs
,(as long as both change. this can be an increase or decrease in total and
per-unit costs)
when choosing the high point for the high-low method, how is the high point
selected? - ✔✔the point with the highest VOLUME is chosen
what is the advantage of using regression analysis to determine the cost
equation - ✔✔- it is objective
- it will generally be more accurate than the high-low method
- all the data points are used to calculate the cost equations
what is the only difference between variable costing and absorption costing
- ✔✔the treatment of fixed manufacturing overhead costs
when inventories decline, operating income under variable costing is........
compared to absorption costing - ✔✔higher than operating income under
absorption costing
what is the formula for the variable cost (slope) in the high-low method -
✔✔change in cost divided by the change in volume
if the sales price of a product increases while everything else remains the
same, what happens to the breakeven point? - ✔✔the breakeven point will
decrease
, target profit analysis is used to calculate the sales volume that is needed to
- ✔✔earn a specific amount of net operating income
a shift in the sales mix from a product with a high contribution margin ratio
toward a product with a low contribution margin ratio will cause the
breakeven point to - ✔✔increase
if the degree of operating leverage is 3, then a 2% change in the number of
units sold should result in a..... change in - ✔✔6% change in operating
income
margin of safety - ✔✔the excess of expected sales over breakeven sales
formula to find the target sales in dollars - ✔✔(fixed expenses + operating
income) / contribution margin ratio
contribution margin ratio - ✔✔contribution margin per unit / sales price
OR
contribution margin total / sales revenue
contribution margin per unit - ✔✔sales price per unit less variable costs per
unit
formula to find the target sales in units - ✔✔(fixed expenses + operating
income) / contribution margin per unit
operating income if you breakeven - ✔✔zero dollars
Answers 100% Pass | Rated A+
if a per-unit cost remains constant over a wide range of volume, the cost is
most likely a - ✔✔variable cost
the cost per unit decreases as volume increases for what cost behavior(s):
fixed, variable, mixed - ✔✔fixed and mixed costs
in the mixed cost equation what amount represents the total variable cost
component - ✔✔vx
equation: y=vx+f
what method is used to see if a relationship between the cost driver and
total cost exists - ✔✔scatter plot
what kind of cost is this: as production increases, total cost increases and
cost per unit stays the same - ✔✔variable costs
what kind of cost is this: as production increases, total cost remains the
same and cost per unit decreases - ✔✔fixed costs
what kind of cost is this: as production increases, total cost increases and
cost per unit increases - ✔✔mixed costs
,(as long as both change. this can be an increase or decrease in total and
per-unit costs)
when choosing the high point for the high-low method, how is the high point
selected? - ✔✔the point with the highest VOLUME is chosen
what is the advantage of using regression analysis to determine the cost
equation - ✔✔- it is objective
- it will generally be more accurate than the high-low method
- all the data points are used to calculate the cost equations
what is the only difference between variable costing and absorption costing
- ✔✔the treatment of fixed manufacturing overhead costs
when inventories decline, operating income under variable costing is........
compared to absorption costing - ✔✔higher than operating income under
absorption costing
what is the formula for the variable cost (slope) in the high-low method -
✔✔change in cost divided by the change in volume
if the sales price of a product increases while everything else remains the
same, what happens to the breakeven point? - ✔✔the breakeven point will
decrease
, target profit analysis is used to calculate the sales volume that is needed to
- ✔✔earn a specific amount of net operating income
a shift in the sales mix from a product with a high contribution margin ratio
toward a product with a low contribution margin ratio will cause the
breakeven point to - ✔✔increase
if the degree of operating leverage is 3, then a 2% change in the number of
units sold should result in a..... change in - ✔✔6% change in operating
income
margin of safety - ✔✔the excess of expected sales over breakeven sales
formula to find the target sales in dollars - ✔✔(fixed expenses + operating
income) / contribution margin ratio
contribution margin ratio - ✔✔contribution margin per unit / sales price
OR
contribution margin total / sales revenue
contribution margin per unit - ✔✔sales price per unit less variable costs per
unit
formula to find the target sales in units - ✔✔(fixed expenses + operating
income) / contribution margin per unit
operating income if you breakeven - ✔✔zero dollars
