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QUIZ 21 AND ANSWERS WITH SOLUTIONS 2024
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QUIZ 21 AND ANSWERS WITH SOLUTIONS 2024
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QUIZ 21 AND ANSWERS WITHSOLUTIONS 2024
A cost that remains the same in total even when volume of activity varies is a: - ANSWER Fixed Cost
A cost that can be separated into fixed and variable components is called a: - ANSWER Mixed Cost
Which one of the following statements is not true? - ANSWER Total variable costs decrease as the
volume increases.
An important tool in predicting the volume of activity, the costs to be incurred, the sales to be earned,
and the profit to be received is: - ANSWER Cost-volume-profit analysis.
A term describing a firm's normal range of operating activities is: - ANSWER Relevant range of
operations.
The margin of safety is the excess of: - ANSWER Expected sales over breakeven sales.
If a firm's forecasted sales are $250,000 and its break-even sales are $190,000, the margin of safety in
dollars is: - ANSWER 600000
A product sells for $30 per unit and has variable costs of $18 per unit. The fixed costs are $720,000. If the
variable costs per unit were to decrease to $15 per unit and fixed costs increase to $900,000, and the
selling price does not change, break-even point in units would: - ANSWER Not change.
Management anticipates fixed costs of $72,500 and variable costs equal to 40% of sales. What will pretax
income equal if sales are $325,000? - ANSWER $122,500.
In cost-volume-profit analysis, the unit contribution margin is: - ANSWER Wrong: Sales price per unit less
cost of goods sold per unit..............Sales price per unit less unit total cost per unit.........Sales price per
unit less unit fixed cost per unit .............Sales price per unit less total variable cost per unit .
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