ACCT 202

RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. RST desires to earn a target income of $20,000. The sales level in dollars to achieve the desired target income is $

$125,000

LMN Company produces a product that sells for $1. The company has production costs of $600,000, half of which are fixed costs. Assuming production and sales of 750,000 units, the contribution margin per unit is $

0.60

1:Material activity 2:Production activity 3:Sales activity

1:Purchase material 2:Use material 3:Product sold

A company produces a product with variable costs of $2.50 per unit. The product sells for $5.00 per unit. The company has fixed costs of $3,000 and desires a target income of $10,000. The sales level in dollars to achieve the desired target income is $

26000

A manufacturing company reports the following items: Finished goods inventory, beginning balance: $1,000 Finish goods inventory, ending balance: $1,200 Cost of goods manufactured, $5,000 The cost of goods sold is

4800

Cost-volume-profit analysis helps managers predict how changes in ()and () levels affect income.

Cost/Sale

Fixed-Depreciation Variable- Direct material mixed-water and electricity

F-Office salaries V-direct materials M-Sales rep pay which includes salary plus commission

True or false: On a scatter diagram, costs are plotted on the horizontal axis.

False

A() cost remains unchanged when the volume of activity changes within the relevant range.

Fixed

Scatter diagrams Based on visual fit and subject to interpretation

High-low method Uses only two sets of values

List the following activities in the order in which they occur, with the first activity on top. Position 1 of 3 Materials activity correct toggle button unavailable Materials activity

Material activity Production Activity Sale Activity

Which of the following is the correct statement about fixed costs?

The fixed cost per unit will decrease when volume increases.

Which of the following is the correct statement about variable costs?

The variable cost per unit does not change when volume changes.

Digital manufacturing combines _____ to manufacture products. (Check all that apply.)

computers machines human control

When preparing a scatter diagram, the estimated line of cost behavior is drawn on a scatter diagram to show the relation between:

cost and unit volume

Understanding the changing needs of customers is referred to as

customer orientation

Which of the following are included in Raw materials inventory?

direct materials

A trend whereby consumers expect to be able to purchase items electronically, whenever and wherever they want is known as

e commerce

A ()cost remains unchanged when the volume of activity changes within the relevant range.

fixed

Expansion of competition which provides customers with many choices is called a economy

global

Expansion of competition which provides customers with many choices is called a economy.

global

Expansion of competitive boundaries which allows customers many choices is called a

global economy

Expansion of competitive boundaries which allows customers many choices is called a: Multiple choice question. customer orientation

global economy

The break-even point is the sales level at which a company: (Check all that apply.)

has income of $0. contribution margin equals fixed costs.

Digital manufacturing combines _____ to manufacture products.

human control computers machines

CVP analysis looks at how ( ) is affected by sales price per unit, variable costs per unit, volume, and fixed costs.

income or profit

Each of the following are methods used to separate mixed costs into their fixed and variable components except:

low-high method

A（）cost includes both fixed and variable components.

mixed

An emphasis on the changing needs of customers is called customer

orientation

Sales mix is the (volume/proportion/mix) ()of the sales volume for each product.

proportion

The cost of materials a company purchases to use in making products are

raw materials.

The three methods used to classify costs into their fixed and variable components includes

regression scatter diagrams high-low method

Sales mix is the proportion of _____ for various products.

sales volume

All of the following are types of e-commerce:

text messaging sales activities online sales activities smartphone sales activities

When using the high-low method, the slope represents:

the variable cost per unit

The high-low method uses ___ points to estimate the cost equation.

two

The break-even point can be expressed as sales in () or ()

units/dollars or dollars of sales

A() cost changes in proportion to changes in volume of activity.

variable

RST Company produces a product that has a variable cost of $6 per unit. The company's fixed costs are $30,000. The product sells for $10 per unit. RST desires to earn a profit of $20,000. The contribution margin per unit is $

4

Cost-volume-profit analysis helps managers predict how changes in （）and ()levels affect income.

cost, sales

Understanding the changing needs of customers is referred to as

customer orientation.

Jack works on the production line at an assembly plant. Jack receives a base salary plus $1.25 per unit assembled. This is an example of a ______ cost.

mixed

ack works on the production line at an assembly plant. Jack receives a base salary plus $1.25 per unit assembled. This is an example of a ______ cost.

mixed