accounting proctor exam
Which of the following statements is true of cost
Cost is a dollar measure of the resources used to achieve a given benefit
Which of the following is true of expired costs?
Expired cost are used up in the production of revenue
Knowing how costs change as output changes is essential to
Planning controlling and decision making
Which of the following is true of price?
Price must be greater than cost for a firm to ean income
Which of the following is true of variable cost
a variable cost in total changes in direct proportions to changes in output within the relevant range.
Which statement is true about cost volume profit CVP analysis?
a. all of the above
Assigning costs the accountant who spent the money
false
Discretionary fixed cost often involve a long term contract.
false
If fixed cost increases the break even point decreases
false
If one increases variable cost per unit the break even point decreases
false
Price must be greater than cost in order for the firm to generate revenue
false
outliners are points that seem to fit the general pattern of behavior
false
the break even point in sales dollars is equal to the break even units multiplied by cost
false
The salary of the college president is - for a college
fixed cost
depreciation on equipment is an example of a
fixed cost
Total contribution margin divided by total sales the the
contribution margin ration
At the break even point
total contractions margin equals total fixed cost
the break even point is when
total revenue equals total cost
If variable expenses decrease and the price increases, the break-even point decreases.
true
The break even point is where total sales revenue equals total cost
true
The cost of advertising is usually a discretionary fixed cost
true
Total variable costs = variable rate X amount of output
true
accumulating costs is the way that costs are measured and recorded
true
assigning costs involve the way a cost in listed to some object
true
is it beneficial to assign indirect costs to cost objects
true
mixed costs have both a fixed and variable component
true
Total variable cost divided by price is
variable cost rational
Which of the following would not be an example of a fixed cost
The electricity bill paid for production
Which of the following statements best describes an indirect cost?
an indirect cost is assigned to a cost object using allocation
discretionary fixed costs does not include
leasing cost