ACG
2071
Chapter
18
Adaptive
learning
A
______
cost
includes
both
fixed
and
variable
components.
-
ANS-mixed
A
_______
cost
changes
in
proportion
to
changes
in
volume
of
activity.
-
ANS-variable
A
_______
cost
includes
both
fixed
and
variable
components.
-
ANS-mixed
A
company
has
a
margin
of
safety
of
20%.
If
expected
sales
are
$50,000,
then
break-even
sales
are:
-
ANS-40,000
50,000-x/50,000=20%,
x=40,000
A
company
has
break-even
sales
of
$200,000.
If
the
company
expects
sales
of
$500,000,
the
margin
of
safety
is
%.
-
ANS-60
500,000-200,000=300,000
300,000/500,000*60
A
company
has
fixed
costs
of
$50,000
while
manufacturing
a
product
that
has
variable
costs
of
$4
per
unit
and
sells
for
$14
per
unit.
The
break-even
point
is
______
units.
-
ANS-5000
50,000/14-4=
A
company
has
sales
of
$125,000,
variable
costs
of
$45,000
and
fixed
costs
of
$30,000.
The
break-even
point
in
sales
dollars
is
$,
-
ANS-46875
125,000-45,000/125,000=0.64
30,000/0.64
A
company
has
sales
of
$125,000,
variable
costs
of
$45,000
and
fixed
costs
of
$30,000.
The
contribution
margin
ratio
is
%
-
ANS-64
125,000-45,000=80,000
80,000/125,000=
A
company
incurs
$12,000
in
direct
labor
costs
when
they
produce
480
units
and
$12,500
in
direct
labor
costs
when
they
produce
500
units.
The
direct
labor
cost
per
unit
is
$.
-
ANS-25
12,000+12,500/480+500 A
company
produces
a
product
with
variable
costs
of
$2.50
per
unit.
The
product
sells
for
$5.00
per
unit.
The
company
has
fixed
costs
of
$3,000
and
desires
a
target
income
of
$10,000.
The
sales
level
in
dollars
to
achieve
the
desired
target
income
is
$.
-
ANS-26000
A
company
produces
a
product
with
variable
costs
of
$2.50
per
unit.
The
product
sells
for
$5.00
per
unit.
The
company
has
fixed
costs
of
$3,000
and
desires
a
target
income
of
$10,000.
The
sales
level
in
units
to
achieve
the
desired
target
income
is
______
units.
-
ANS-5200
A
cost
which
reflects
a
stair-step
pattern
in
costs
is
called
a
_______
cost
-
ANS-step-wise
A
manufacturing
company
incurs
depreciation
costs
of
$6,000
per
month
on
manufacturing
machinery.
The
depreciation
cost
per
unit
is
$______
when
the
company
manufactures
2,000
units.
-
ANS-3
6,000/2,000
A
manufacturing
company
incurs
direct
materials
costs
of
$6
per
unit.
The
total
direct
materials
cost
is
$______
when
the
company
manufactures
2,000
units.
-
ANS-12000
6*2,000
A
manufacturing
company
incurs
rent
costs
of
$12,500
per
month.
The
company
manufactured
250,000
units
in
May
and
300,000
units
in
June.
The
cost
per
unit
in
May
and
June,
respectively,
is:
-
ANS-$0.05
and
$0.04
May:
12,500/250,000=0.05
June:
12,500/300,000=0.04
A
statistical
method
of
identifying
cost
behavior
that
is
computed
using
spreadsheet
programs
or
calculators
is:
-
ANS-least-squares
regression
Acme
Manufacturing
recently
added
another
shift,
which
required
the
company
to
hire
another
production
supervisor.
The
supervisor's
salary
would
be
considered
a:
-
ANS-step-wise
cost
Because
of
its
usefulness
in
CVP
analysis,
managers
generally
use
an
income
statement
in
which
format?
-
ANS-Contribution
margin
income
statement
Contribution
margin
per
unit
contributes
to
covering
______
costs
and
then
generating
_____
on
a
per
unit
basis.
-
ANS-fixed;
profits
Cost-volume-profit
analysis
helps
managers
predict
how
changes
in
and
levels
affect
income.
-
ANS-sales
cost