Costs and Question
Question 5
0 / 1 point
The return on investment measure of performance:
1)
Is not as important a measure of management effectiveness as the amount of net income.
2)
Relates dividends paid to the entity's assets.
3)
Is calculated using net income as the amount of return.
4)
Is calculated by dividing average assets for a period by the amount of net income for the period.
Question 9
0 / 1 point
Expenditures capitalized as long-lived assets generally include those expenditures that:
1) are made for normal repairs to maintain the usefulness of the asset over a number of years.
2) are for items that have a physical life of more than a year, regardless of their cost.
3) are material and that have an economic benefit to the entity only in the current year.
4) are material and that have an economic benefit to the entity that extends beyond the current year.
Question 11
0 / 1 point
Cassady, Inc. borrowed $5,000 for 3 months at an APR of 10%. The amount of interest paid on this loan was:
1)
$240
2)
$120
3)
$125
4)
$500
Question 16
0 / 1 point
As the total volume of activity changes:
1) the total of variable costs changes.
2) the total of fixed costs changes.
3) variable costs per unit change.
4) fixed costs per unit stay the same.
Question 17
0 / 1 point
A firm has revenues of $120,000, a contribution margin ratio of 30%, and fixed expenses that total $56,000. If revenues increase by $20,000, then:
1) operating income will increase by $6,000.
2) operating income will be 0.
3) fixed expenses will increase $8,000.
4) the contribution margin ratio will increase by 1/8.
Question 18
0 / 1 point
Direct costs pertain to costs that:
1) are traceable to a cost object.
2) are not traceable to a cost object.
3) are commonly incurred.
4) are variable costs.
Question 19
0 / 1 point
The three
0 / 1 point
The return on investment measure of performance:
1)
Is not as important a measure of management effectiveness as the amount of net income.
2)
Relates dividends paid to the entity's assets.
3)
Is calculated using net income as the amount of return.
4)
Is calculated by dividing average assets for a period by the amount of net income for the period.
Question 9
0 / 1 point
Expenditures capitalized as long-lived assets generally include those expenditures that:
1) are made for normal repairs to maintain the usefulness of the asset over a number of years.
2) are for items that have a physical life of more than a year, regardless of their cost.
3) are material and that have an economic benefit to the entity only in the current year.
4) are material and that have an economic benefit to the entity that extends beyond the current year.
Question 11
0 / 1 point
Cassady, Inc. borrowed $5,000 for 3 months at an APR of 10%. The amount of interest paid on this loan was:
1)
$240
2)
$120
3)
$125
4)
$500
Question 16
0 / 1 point
As the total volume of activity changes:
1) the total of variable costs changes.
2) the total of fixed costs changes.
3) variable costs per unit change.
4) fixed costs per unit stay the same.
Question 17
0 / 1 point
A firm has revenues of $120,000, a contribution margin ratio of 30%, and fixed expenses that total $56,000. If revenues increase by $20,000, then:
1) operating income will increase by $6,000.
2) operating income will be 0.
3) fixed expenses will increase $8,000.
4) the contribution margin ratio will increase by 1/8.
Question 18
0 / 1 point
Direct costs pertain to costs that:
1) are traceable to a cost object.
2) are not traceable to a cost object.
3) are commonly incurred.
4) are variable costs.
Question 19
0 / 1 point
The three