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Cost behavior refers to the manner in which

09/11/2021 Client: muhammad11 Deadline: 2 Day

1. The number of equivalent units of production for material costs for the period was:

a. 31,800

b. 29,800

c. 30,000

d. 32,000

2. The number of units that could have been completed within a given accounting period is the definition of

a. units started and completed.

b. equivalent units.

c. conversion costs.

d. ending work in process.

3. A form prepared periodically for each processing department summarizing (1) the units for which the department is accountable and the units to be assigned costs and (2) the costs charged to the department and the allocation of these costs is termed a:

a. factory overhead production report

b. manufacturing cost report

c. process cost report

d. cost of production report

1. Just-in-time processing is a business philosophy that focuses on reducing time and cost and eliminating poor quality. This is accomplished in manufacturing and non-manufacturing processes by:
a. moving a product from process to process as each function is completed
b. combining processing functions into work centers and cross-training workers to perform more than one function
c. having production supervisors attempt to enter enough materials into manufacturing to keep all manufacturing departments operating
d. having workers typically perform one function on a continuous basis

2. Cost behavior refers to the manner in which:
a. a cost changes as the related activity changes
b. a cost is allocated to products
c. a cost is used in setting selling prices
d. a cost is estimated

3. Costs that remain constant in total dollar amount as the level of activity changes are called:
a. fixed costs
b. mixed costs
c. opportunity costs
d. variable costs

1. Which of the graphs in Figure 20-1 illustrates the behavior of a total fixed cost?
a. Graph 2
b. Graph 3
c. Graph 4
d. Graph 1

2. Which of the graphs in Figure 20-1 illustrates the behavior of a total variable cost?
a. Graph 2
b. Graph 3
c. Graph 4
d. Graph 1

3. Which of the graphs in Figure 20-1 illustrates the nature of a mixed cost?
a. Graph 2
b. Graph 3
c. Graph 4
d. Graph 1

1. Contribution margin is:

a. the excess of sales revenue over variable cost

b. another term for volume in the "cost-volume-profit" analysis

c. profit

d. the same as sales revenue

2. The contribution margin ratio is:

a. the same as the variable cost ratio

b. the same as profit

c. the portion of equity contributed by the stockholders

d. the same as the profit-volume ratio

3. Bailey Company sells 25,000 units at $15 per unit. Variable costs are $8 per unit, and fixed costs are $35,000. The contribution margin ratio and the unit contribution margin, (rounding to two decimal points) are:

a. 47% and $7 per unit

b. 53% and $7 per unit

c. 47% and $8 per unit

d. 53% and $8 per unit

1. If fixed costs are $250,000, the unit selling price is $105, and the unit variable costs are $65, what is the break-even sales (units)?
a. 3,846 units
b. 2,381 units
c. 10,000 units
d. 6,250 units

2. If fixed costs are $1,400,000, the unit selling price is $220, and the unit variable costs are $120, what is the amount of sales required to realize an operating income of $200,000?
a. 14,000 units
b. 12,000 units
c. 16,000 units
d. 13,333 units

3. The number of units that could have been completed within a given accounting period is the definition of
a. units started and completed.
b. equivalent units.
c. conversion costs.
d. ending work in process.

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