Costs and Points Question

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1. Product costs used for pricing and product-mix decisions generally include: Answer
| | manufacturing costs only |
| | design costs plus manufacturing costs |
| | all costs incurred along the value chain |
| | distribution costs only |
0.1 points  
Question 4  
Within the relevant range, if there is a change in the level of the cost driver, then: Answer
| | fixed and variable costs per unit will change |
| | fixed and variable costs per unit will remain the same | | | fixed costs per unit will remain the same and variable costs per unit will change | | | fixed costs per unit will change and variable costs per unit will remain the same | 0.1 points  

Question 5
1.  
Answer the following questions using the information below:

Pederson Company reported the following:

What is the amount of gross margin?
Answer
| | $1,750,000 |
| | $3,525,000 |
| | $5,405,000 |
| | $1,645,000 |
0.1 points  
Question 6
1.  
Answer the following questions using the information below:

Assume the following cost information for Fernandez Company:

What is the number of units that must be sold to earn an after-tax net income of $42,000? Answer
| | 3,750 units |
| | 4,625 units |
| | 3,050 units |
| | 1,875 units |
0.1 points  
Question 7
1.  
Answer the following questions using the information below:

Kaiser's Kraft Korner sells a single product. 7,000 units were sold resulting in $70,000 of sales revenue, $28,000 of variable costs, and $12,000 of fixed costs.

Breakeven point in units is:
Answer
| | 2,000 units |
| | 3,000 units |
| | 5,000 units |
| | None of these answers are correct. |
0.1 points  
Question 8
1.  
Answer the following questions using the information below:

The following information is for the Jeffries Corporation:

If the sales mix shifts to four units of Product A and one unit of Product B, then the breakeven point will: Answer
| | increase |
| | stay the same |
| | decrease |
| | be indeterminable |
0.1 points  
Question 9
1.  
Answer the following questions using the information below:

Franscioso Company sells several products. Information of average revenue and costs is as follows:

The number of units that Franscioso must sell annually to make a profit of $90,000 is: Answer
| | 10,000 units |
| | 12,000 units |
| | 15,000 units |
| | 20,000 units |
0.1 points  
Question 10
1.  
If Springfield Realtor plans an operating income of $105,000 and the tax rate is 30%, then Springfield's planned net income should be: Answer
| | $31,500 |
| | $73,500 |
| | $136,500 |
| | $178,500 |
0.1 points  
Question 11
1.  
Answer the following questions using the information below:

The Hunter Company uses the high-low method to estimate the cost function. The information for 20X5 is provided below:

What is the slope coefficient per machine-hour?
Answer
| | $28.33 |
| | $0.05 |
| | $20.00 |
| | $25.00 |
0.1 points  
Question 12
1.  
The conference method estimates cost functions:
Answer
| | using quantitative methods that can be very time consuming and costly | | | based on analysis and opinions gathered from various departments | | | using time-and-motion studies |
| | by mathematically analyzing the relationship between inputs and outputs in physical terms| 0.1 points  
Question 13
1.  
How many separate cost pools should be formed given the following information:

Answer
| | 1 cost pool |
| | 2 cost pools |
| | 3 cost pools |
| | 4 cost pools |
0.1 points  
Question 14
1.  
Answer the following questions using the information below:

Roiann and Dennett Law Office employs 12 full-time attorneys and 10 paraprofessionals. Direct and indirect costs are applied on a professional...
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