MANAGERIAL ACCOUNTING TEST 2 MULTIPLE CHOICE WILEY ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS

MANAGERIAL ACCOUNTING TEST 2 MULTIPLE CHOICE WILEY ACTUAL 2025/2026 QUESTIONS AND 100% CORRECT ANSWERS A cost which remains constant per unit at various levels of activity is a: A. variable cost. B. fixed cost. C. mixed cost. D. manufacturing cost. - Answer -A. variable cost Two costs at Bradshaw Company appear below for specific months of operation. Month Amount Units Produced Delivery costs September $ 40,000 40,000 October 55,000 60,000 Utilities September $ 84,000 40,000October 126,000 60,000 Which type of costs are these? A.Delivery costs and utilities are both variable. B. Delivery costs are mixed and utilities are variable. C. Utilities are mixed and delivery costs are variable. D. Delivery costs and utilities are both mixed. - Answer -B. Delivery costs are mixed and utilities are variable. A fixed cost is a cost which A. varies in total with changes in the level of activity. B. remains constant per unit with changes in the level of activity. C. varies inversely in total with changes in the level of activity. D. remains constant in total with changes in the level of activity. - Answer -D. remains constant in total with changes in the level of activity. Cost behavior analysis is a study of how a firm's costs A. relate to competitors' costs. B. relate to general price level changes.C. respond to changes in the level of business activity. D. respond to changes in the gross national product. - Answer -C. respond to changes in the level of business activity At the high level of activity in November, 5000 machine hours were run and power costs were $12000. In April, a month of low activity, 1000 machine hours were run and power costs amounted to $3000. Using the high-low method, the estimated fixed cost element of power costs is A. $750. B. $11250. C. $3000. D. $12000. - Answer -A. $750. If Qualls Quality Airline cuts its domestic fares by 30%, A. its fixed costs will decrease. B. a profit can only be earned by decreasing the number of flights. C. a profit can be earned either by increasing the number of passengers or by decreasing variable costs. D. profit will increase by 30%. - Answer -C. a profit can be earned either by increasing the number of passengers or by decreasing variable costs. For analysis purposes, the high-low method usually produces a(n)