Accounting Test #2
The company's unit contribution margin is closest to:
A) $2.60
What is the total period cost for the month under variable costing?
A) $230,100
What is the unit product cost for the month under absorption costing?
A) $87
Contribution margin is the amount remaining after
A) Variable expenses have been deducted from sales revenue
Under absorption costing, fixed manufacturing overhead costs
A) are deferred in inventory when production exceeds sales
When sales are constant, but the numbers of units produced fluctuates. net operating income determined by the absorption costing method will
A) tend to fluctuate in the same direction as fluctuations in the number of units produced
Arkadia Corporation contribution format... A-F
A= CM/sales= 33% B= ( Fixed expenses/ [(sales/variable expenses- Variable Expenses/units sold)] )= 15,000 C= (ask) D= target profit+fixed expenses= Y/20= 21,250 E= Units sold- 15,000 (from B)= 5,000 units X 60 (dollars per unit) = 300,000 F= sales/net income= 12
What is the net operating income for the month under variable costing?
B) $3,900
If the company increases its unit sales volume by 5% without increasing its fixed expenses, then total net operating income should be closest to
B) 123,100
A manufacturer with wire stripper...The company's margin of safety in units is closest to:
B) 16,923
The company's contribution margin ratio is closer to
B) 50%
George Corporation has no beginning inventory and manufactures a single product.
B) Be greater than the net operating income under variable costing
Assume a company sells a single product. (Q, P, V, F)
B) F/[Q(P-V)]
A national retail company has segmented its income statement by sales territories. If each sales territory statement is further segmented by individual stores, which of the following will most likely occur?
B) Some traceable....turned into common
If a cost is a common cost of the segments on a segmented income statement, the cost should:
B) not be allocated to the segments
Which of the following is NOT a correct definition of the break-even point
B) the point where total profit equals total fixed expenses
The principle difference between variable costing and absorption costing centers on:
B) whether fixed manufacturing costing should be included in product costs
What is the total period cost for the month under the absorption costing?
B)$60,000
What is the net operating income for the month under absorption costing?
C) $12,000
The margin of safety is
C) the excess of budgeted or actual sales over the break-even volume of sales
The company's degree of operating leverage is closest to:
D) $55.64
Aaker Corporation, (list of stuff "4 segments" .. What is the unit product cost for the month under variable costing?
D) $60
A cement factory..a list of shit with expenses and net income
D) 2.10 per unit
Smee Inc produces and sells and single product.....
D) 3,610
The breakeven in monthly dollar sales is closest to:
D) 469,300
The ones with the (contribution margin, contribution margin ratio, and break even units in rows)
D) Increase, no change, decreases
The breakeven in units sold will decrease if there is an increase in..
D) Selling Price
When using data from a segmented income statement, the dollar sales for a segment to break even is equal to:
D) Traceable fixed expenses / Segment CM ratio
Routsong Corporation had the following sales and production for the past 4 years
D) under absorption costing, net operating......
Italian expresso market
Figure out tomorrow
Under absorption costing, product costs include: (yes or no columns)
Yes and yes...A) option A
Grable Corporation 230,69,161
selling price-variable expenses= CM*units selling(5,000)= 805,000-fixed expenses per month(628,000)= 177,000 change(230-18)= 212 212-69= 143 X 5,800=829,400- 628,000+45,000= 156,400 177,000-156,400 decrease of 20,600
