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ACCT-526: Final Exam Practice Questions and Answers (100% Pass)
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ACCT-526: Final Exam Practice Questions and Answers (100% Pass)
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©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)
CHAPTER 7- CENGAGE PRACTICE - ✔️✔️
Which of the following is true of the break-even point? - ✔️✔️It is the point where total
revenue equals total cost.
Marc Company sells a product for $20, incurs a variable cost of $12 per unit, and has
total fixed costs of $6,000. What is the per-unit contribution margin? - ✔️✔️$8
20-12=8
*sales- VC= contribution
Whittier Company plans to produce and sell 2,000 units next month. The following data
is given.
1
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
Per unit
TotalSelling price $50
Variable cost $24
Total
Fixed costs $28,000
Calculate the break-even point in units. - ✔️✔️1077
28000/26= 1077
* fixed expense/ contribution margin per unit= break even point in units
Paule Company manufactures computers. The budgeted sales are $300,000, budgeted
variable costs are $153,000, and budgeted fixed costs are $270,000. Calculate the
variable cost ratio. - ✔️✔️51%
(153000/ 300000)X 100= 51%
2
,©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
* (variable cost/ sales) X 100= variable cost ratio
Information for Noble Company is as follows:
Sales 400,000
Variable costs 100,000
Fixed costs 150,000
Calculate the break-even point in sales dollars. - ✔️✔️200000
*(contribution margin/ sales) X100= contribution margin ratio
(300000/ 400000)X100= 75%
*Fixed cost/ contribution margin ratio= Break even point in sales dollars
150000/ 75%= 200000
3
, ©PREP4EXAMS@2024 [REAL-EXAM-DUMPS] Saturday, August 3, 2024 7:34 AM
WEST VIRGINIA UNIVERSIRTY- (WV) : 26506
Which of the following is the mathematical expression for calculating number of units to
earn target income? - ✔️✔️Number of Units to Earn Target Income = (Total Fixed Cost +
Target Income) ÷ Contribution Margin per Unit
Assuming that fixed costs remain the same, the change in operating income from a
change in revenues is calculated by. - ✔️✔️multiplying the contribution margin ratio and
the break-even sales.
In a cost-volume-profit graph, the break-even point lies at the point: - ✔️✔️where the total
revenue line and the total cost line intersect.
Which of the following is an assumption of CVP analysis? - ✔️✔️Linear revenue and cost
functions remain constant over the relevant range.
Which of the following differentiates direct fixed expenses from common fixed
expenses? - ✔️✔️The direct fixed expenses are those fixed costs that can be traced to a
segment, whereas the common fixed expenses are not traceable to the segments.
Which of the following statements is true of sales mix? - ✔️✔️It is the relative combination
of products being sold by a firm.
A company manufactures two products. Information about the two product lines for the
current year is as follows:
Product A
4
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