Exam (elaborations)
ACCT 526 Final Exam Practice Questions and Answers (100% Pass)
- Course
- Institution
ACCT 526 Final Exam Practice Questions and Answers (100% Pass)
[Show more]
Content preview
©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AMWEST VIRGINIA UNIVERSIRTY- (WV) : 26506
ACCT 526 Final Exam Practice
Questions and Answers (100% Pass)
the point at which total revenue equals total cost (both fixed and variable cost). At
breakeven, profit is zero. - ✔️✔️break even point
Alpha Company is evaluating a make-or-buy decision. Which of the following is an
example of an irrelevant cost with regard to a make-or-buy decision? - ✔️✔️cost of
security guard who will guard the finished goods inventory
fixed expenses that cannot be traced to individual segments or products. They will
continue to exist even if one segment or product is eliminated. - ✔️✔️common fixed
expense
the difference between total sales and total variable costs on a total basis, or price
minus unit variable cost on a per-unit basis. Total contribution margin is the amount left
over from sales to contribute to covering fixed costs and profit. - ✔️✔️contribution margin
the cost behavior-based income statement. Costs are separated into fixed and variable
categories. First, total variable cost is subtracted from sales to get the contribution
margin. Next, total fixed expenses are subtracted to get operating income (profit). -
✔️✔️contribution margin income statement
1
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
the ratio of total contribution margin to sales or of unit contribution to price. Contribution
margin ratio is also computed as 1 (100%) minus the variable cost ratio. It represents
the percentage of each sales dollar available to contribute to fixed cost and profit. -
✔️✔️contribution margin ratio
the company's relative mix of fixed to variable costs. It is useful in determining operating
leverage. - ✔️✔️cost structure
estimates how changes in costs (both variable and fixed), sales volume, and price affect
profit. - ✔️✔️cost volume profit analysis (CVP)
a graph showing the relationships among cost, volume (units sold), and profit using a
total cost line and a total revenue line. The intersection of the total cost line with the total
revenue line is the break-even point. - ✔️✔️CVP graph
shows the degree to which fixed costs are used to obtain a higher percent change in
profits as sales change. DOL is equal to the total contribution margin divided by
operating income. - ✔️✔️degree of operating leverage
fixed expenses that can be traced to an individual segment or product. If that segment
or product is eliminated, the direct fixed expense is eliminated. - ✔️✔️direct fixed
expenses
the number of units sold or the amount of sales revenue earned above the break-even
point. - ✔️✔️margin of safety
2
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
occurs when fixed costs are used to obtain higher change in profits as sales change. -
✔️✔️operating leverage
the relative combination of products sold by a company. Sales mix is usually expressed
in the lowest whole units. For example, a sales mix of 3:2 means that for every 3 units
of Product A sold, 2 units of Product B are sold. - ✔️✔️sales mix
a ?what-if? technique used to see what impact a change in an underlying variable has
on the answer. - ✔️✔️sensitivity analysis
the ratio of total variable cost to sales or of unit variable cost to price. Variable cost ratio
is also computed as 1 (100%) minus the contribution margin ratio. It represents the
percentage of each sales dollar used to cover variable cost. - ✔️✔️variable cost ratio
financial plans for the future. - ✔️✔️budgets
fixed expenses that cannot be directly traced to individual segments and that are
unaffected by the elimination of any one segment. - ✔️✔️common fixed expenses
mathematical expressions that express resource limitations. - ✔️✔️constraints
a moving 12-month budget. As 1 month expires, another month in the future is added. -
✔️✔️continious budget
a specific set of procedures that, when followed, produces a decision. - ✔️✔️decision
model
3
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller OliviaWest. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81177 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now