Module 4 (chpt 18)

What variable is the cost type for water and electricty

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

sales mix is the proportion of _____ for various products.

sales volume

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 $

125000

A ______cost remains unchanged when the volume of activity changes within the relevant range.

Fixed

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

The fixed cost per unit will decrease when volume increases

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

The variable cost per unit

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

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

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

Variable

Cost-volume-profit analysis helps managers predict how changes in______ and ____ levels affect income.

cost and sales

When preparing a scatter diagram, the estimated line of cost behavior is drawn on a scatter diagram to show the relation between: Multiple choice question. variable and fixed costs

cost and unit volume

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

false

cost type of office salaries

fixed

3 methods are commonly used to estimate fixed and variable costs

- Scatter Diagram -High-low method - Regression

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

2

What is the cost type for deprecitation

fixed

The break-even point can be expressed as sales in_____ or ______

unit or dollars

Cost type of direct materials

variable

what cost type is direct materials

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 $4Blank 1Blank 1 4 , Correct Unavailable.

$4 (10-6)

The break-even point is the sales level at which a company:

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

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 $.

0.6

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

income

cost type of sales rep pay. (which includes salary plus commission

mixed