Test Anwers

Margin of safety percentage is equal to:

( sales - break-even sales)/ sales

The natalie white co manufactures and sells gyroscopes. The following data are related to sales and production of the toy gyroscopes for last year.

14

What is the inventoriable product cost per unit, under absorption costing?

18

The Kelsey Thornton company sells its product for 120 per unit. The variable cost per unit is 75. Fixed costs are 891,000. What is Kelsey Thornton's breakeven point in units?

19800

The Joe Barbagallo co reports the following data.

2.175

Using variable costing, what in the operating income(loss) for last year?

25000

Referring to the above information, what level of sales in dollars must Kelsey achieve to generate 240,000 in operating income?

3,016,000

Connor Mueller, controller of the jordan bratton co, conducted an analysis of relationship between maintenance cost and machine hours, using regression analysis.Connor, calculated an R of .59. What is the percentage of variation maintenance cost that is explained by the variation in machine hours?

34.81

Under absorption costing what is the operating income?

50500

+The mohd- ar fari co produces 50,00 parts per year, which are used in the assembly of its products. The unit product cost of these part is:

770,000 decrease

an "opportunity cost" is best described by which of the following?

A benefit foregone by choosing a particular alternative course of action

Which of the following statements is FALSE with respect to absorption costing?

Absorption costing, under some circumstance, rewards mangers for doing something fundamentally bad; producing product when there is no demand for the product to be produced LONG ONE

which of the following statements is true for a company that uses variable costing

All above

which would be a consideration for accepting rejecting special orders?

All the above

A cost is relevant to a decision if:

Both A and B above, must be true for the cost to be relevant to the decision.

Fixed expenses divided by the contribution margin ratio is the:

Break Even point in sales dollars

Total revenue minus total variable costs equal:

Contribution margin

It is estimated that 250,000 of the fixed expenses could be eliminated if the department is discontinued. These data indicate that IF THE DEPARTMENT IS DISCONTINUED. Yufang Zhang overall net operating income would:

Decrease by 90,000

/Within the relevant range, the total variable cost:

Increases as activity increases •total fixed cost remains costant

The linear equation y=vx + f is often used to express cost formulas. In this equation:

Know the term F is fixed cost

The cost of goods sold in a manufacturing company would be classified as a:

Mixed cost

Hannah adams, controller for the samantha camerer co, calculated the degree of operating leverage to be 2.7 times. THe smanatah co is anticipating 50% increase in sales in the coming period. What increase in net operating income can the samantha camerer company expect in the coming period.

Mulitpe the two 2.7 X 50%

WHen 25,000 units are produced, variable costs are 13 per unit. Therefore, when 40,000 units are produced ( within the relevant range) :

NOT A Or B so have to be C Ask for wrong thing

+Which of the following is true with respect to the coefficient of determination (R^2)

NOT all the above not YX Not 0%

By multiplying ___________ and the subtracting fixed costs, mangers can quickly forecast the operating income

Project sales cost WRONG QUESTION

Sales mix:

Refers to the relative portion in which a company's products are sold

Within the relevant range (fixed)**** cost per unit...

Remains constant

Which of the following costs are always IRRELEVANT in decision making?

Sunk costs

a cost is relevant to a decision if

The cost differs among alternatives and is an expected, future cost. BOTH A AND B

The Ryan Tomlin tomato Corporation manufactures three tomato based products. Floods and fire on the west coast are going to cause a shortage of tomato for ryan next month. Information related to the three tomato product that its produces are shown below. The numbers relate to the cost per case and the amount of tomato per case of product

salsa