ACC 350 Exam 1 Question and answers
100% correct 2025
total fixed costs will remain the same and total variable costs will change -
correct answer ✔Within the relevant range, if there is a change in the level of
the cost driver, then _______.
variable costs will remain at $8 per unit - correct answer ✔When 20,000
units are produced, variable costs are $8 per unit. Therefore, when 10,000
units are produced _______.
Total manufacturing costs will increase and unit manufacturing costs will
decrease - correct answer ✔XIAN Manufacturing produces a unique valve,
and has the capacity to produce 50,000 valves annually. Currently XIAN
produces 40,000 valves and is thinking about increasing production to 45,000
valves next year. What is the most likely behavior of total manufacturing costs
and unit manufacturing costs given this change?
$255,000
(50*3)=150 DM
(10*3)=30 DL
(15*3)=45 VMO
Fixed overhead= 30
(150+30+45+30)=255 - correct answer ✔Build Manufacturing plant has
capacity for 3,000 tables and is considering expanding production to 3,000
tables. What is the total cost of producing 3,000 tables?
$85.00
, (255,000/3,000)=85 - correct answer ✔What is the per unit cost for Buildz
Manufacturing when producing 3,000 tables? Total cost of producing 3,000
tables=$255,000
$137
(70+20+15+32) - correct answer ✔Zephyr Apparels produces Product
DCT121. What are the inventoriable costs per unit associated with Product
DCT121?
DM= 70
DL= 20
VOverhead=15
Fixed overhead= 32
sales commissions (2% of sales)=5
administrative salaries=16
$21
(16+5) - correct answer ✔Zephyr Apparels produces Product DCT121. What
are the period costs per unit associated with Product DCT121?
DM= 70
DL= 20
VOverhead=15
Fixed overhead= 32
sales commissions (2% of sales)=5
administrative salaries=16
Total revenues and total costs are linear in relation to output units - correct
answer ✔Which of the following is true of CVP analysis?
100% correct 2025
total fixed costs will remain the same and total variable costs will change -
correct answer ✔Within the relevant range, if there is a change in the level of
the cost driver, then _______.
variable costs will remain at $8 per unit - correct answer ✔When 20,000
units are produced, variable costs are $8 per unit. Therefore, when 10,000
units are produced _______.
Total manufacturing costs will increase and unit manufacturing costs will
decrease - correct answer ✔XIAN Manufacturing produces a unique valve,
and has the capacity to produce 50,000 valves annually. Currently XIAN
produces 40,000 valves and is thinking about increasing production to 45,000
valves next year. What is the most likely behavior of total manufacturing costs
and unit manufacturing costs given this change?
$255,000
(50*3)=150 DM
(10*3)=30 DL
(15*3)=45 VMO
Fixed overhead= 30
(150+30+45+30)=255 - correct answer ✔Build Manufacturing plant has
capacity for 3,000 tables and is considering expanding production to 3,000
tables. What is the total cost of producing 3,000 tables?
$85.00
, (255,000/3,000)=85 - correct answer ✔What is the per unit cost for Buildz
Manufacturing when producing 3,000 tables? Total cost of producing 3,000
tables=$255,000
$137
(70+20+15+32) - correct answer ✔Zephyr Apparels produces Product
DCT121. What are the inventoriable costs per unit associated with Product
DCT121?
DM= 70
DL= 20
VOverhead=15
Fixed overhead= 32
sales commissions (2% of sales)=5
administrative salaries=16
$21
(16+5) - correct answer ✔Zephyr Apparels produces Product DCT121. What
are the period costs per unit associated with Product DCT121?
DM= 70
DL= 20
VOverhead=15
Fixed overhead= 32
sales commissions (2% of sales)=5
administrative salaries=16
Total revenues and total costs are linear in relation to output units - correct
answer ✔Which of the following is true of CVP analysis?
