FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 21: Cost-Volume-Profit Analysis

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 21

Essay

Review LaterAdd Note

Review Later

The difference between the unit sales price and the unit variable cost of an item is defined as the _________________________.

Correct Answer

verified

unit contr...

View Answer

Show Answer

Question 22

True/False

Review LaterAdd Note

Review Later

Cost-volume-profit analysis is used to predict future costs to be incurred,volumes of activity,sales to be made,and profit to be earned.

A) True
B) False

Correct Answer

verified

Show Answer

Question 23

True/False

Review LaterAdd Note

Cost-volume-profit analysis cannot be used when a firm produces and sells more than one product.

A company manufactures and sells a product for $120 per unit.The company's fixed costs are $68,760,and its variable costs are $90 per unit.The company's break-even point in dollars is:

Dividing a mixed cost into its separate fixed and variable cost components makes it more difficult to perform cost-volume-profit analysis.

There are only two methods to derive an estimated line of cost behavior;the high-low method and the scatter diagram.

One aid in measuring cost behavior involves creating a display of the data about past costs in graphical form.Such a visual display is called a ______________________.

A visual line fit to points in a scatter diagram may be used to identify the approximate relation between past cost and unit data.

There are at least three different methods to separate costs into fixed and variable.These methods are the _______________,_______________,and _______________ methods. Answers must appear in this order.

A firm sells two products,Regular and Ultra.For every unit of Regular the firm sells,two units of Ultra are sold.The firm's total fixed costs are $1,612,000.Selling prices and cost information for both products follow.The contribution margin per composite unit is:

Least-squares regression is a statistical method for identifying cost behavior.

If a firm's forecasted sales are $250,000 and its break-even sales are $190,000,the margin of safety in dollars is:

Madison Corporation sells three products (M,N,and O) in the following mix: 3:1:2.Unit price and cost data are: Total fixed costs are $340,000.The break-even point in sales dollars for the current sales mix is (round to the nearest thousand) :

The high-low method of deriving an estimated cost line uses all the data points available.

Flannigan Company manufactures and sells a single product that sells for $450 per unit;variable costs are $300.Annual fixed costs are $870,000.Current sales volume is $4,200,000.Flannigan Company management targets an annual pre-tax income of $1,125,000.Compute the dollar sales to earn the target pre-tax net income.

A graphic presentation of cost-volume-profit data is known as a __________________ graph (or chart);this presentation is also sometimes called a ______________ chart. Answers must appear in this order.

A firm expects to sell 25,000 units of its product at $11 per unit.Pretax income is predicted to be $60,000.If the variable costs per unit are $5,total fixed costs must be:

Flannigan Company manufactures and sells a single product that sells for $450 per unit;variable costs are $300.Annual fixed costs are $870,000.Current sales volume is $4,200,000.Compute the contribution margin ratio.

During its most recent fiscal year,Dover,Inc.had total sales of $3,200,000.Contribution margin amounted to $1,500,000 and pretax income was $400,000.What amount should have been reported as variable costs in the company's contribution margin income statement for the year in question?

A cost that includes both fixed and variable cost components is called a: