Loading...

Messages

Proposals

Stuck in your homework and missing deadline? Get urgent help in $10/Page with 24 hours deadline

Get Urgent Writing Help In Your Essays, Assignments, Homeworks, Dissertation, Thesis Or Coursework & Achieve A+ Grades.

Privacy Guaranteed - 100% Plagiarism Free Writing - Free Turnitin Report - Professional And Experienced Writers - 24/7 Online Support

The true statement about cost behavior is that:

27/10/2020 Client: arwaabdullah Deadline: 24 Hours

1. Which of the following statements about cost behavior is true?

A costs item that is classified as “variable” relative to one activity base may be classified as “fixed” relative to another activity base.

The concept of “relevant range” applies to fixed costs but not to variable costs.

As output increases, fixed cost per unit increases.

As output increases, mixed cost per unit increases.

2. Which of the following costs changes in direct proportion to a change in the activity level?

Fixed cost.

Variable cost.

Step-variable cost.

Semi-variable cost.

3. The Eola Hills Company has estimated the following cost formulas for overhead:

Cost Formula: Lubricants $2,500 plus $0.50 per machine-hour Utilities $3,000 plus $0.60 per machine-hour Depreciation $1,000 Maintenance $1,200 plus $0.10 per machine-hour Machine setup $ 0.30 per machine-hour

Based on these cost formulas, the total overhead cost expected at an activity level of 500 machine hours is:

$7700.

$8450.

$7900.

$8350.

4. A product sells for $15 per unit and has variable expenses of $9 per unit. Fixed expenses total $70,000 per month. How many units of the product must be sold each month to yield a monthly profit of $20,000?

10,000 units

3,750 units

6,000 units

15,000 units

5. Which of the following statements about cost-volume-profit analysis is false?

A company selling multiple products should use the contribution margin ratio method to perform CVP analysis.

The break-even point is the sales level at which the total contribution margin is equal to total fixed costs.

An assumption of CVP analysis is that productivity improves over time.

An assumption of CVP analysis is that variable costs are linear.

6. Which of the following would take place if a company were forced to increase its variable cost per unit?

Contribution Margin: Break-even Point:

Increase Increase

Increase Increase:

Decrease Increase

Decrease Decrease

7. Richard Hamilton has a fast-food franchise and must pay a franchise fee equal to $35,000 plus 3% of gross sales. In terms of cost behavior, the fee is a:

fixed cost.

variable cost.

mixed cost.

step-fixed cost.

8. Which of the following statements about operating leverage is false?

A change in sales volume will affect a company’s operating leverage.

The degree of operating leverage is highest in companies that have relatively high fixed costs and relatively low variable costs in proportion to total coats.

If a company has an operating leverage of “4,” then a 10% increase in sales will result in a 40% increase in net income.

The net income of a company with a relatively low operating leverage will be more sensitive to changes in sales volume than for a company with a relatively high operating leverage.

9. The following information is available for the Skyway Company for 20X5: Sales $200,000 Variable expenses 140,000 Fixed expenses 40,000 What was Skyway’s contribution-margin ratio for 20X5?

20%

80%

70%

30%

10. Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year:

Month Utilities Machine Hours

January `$ 8,700 800

February `8,360 720

March `8,950 810

April `9,360 920

May `9,625 950

June` 9,150 900

The variable utilities cost per machine hour is:

$5.00.

$5.50.

$0.18.

$4.50.

11. Atlanta, Inc., which uses the high-low method to analyze cost behavior, has determined that machine hours best explain the company's utilities cost. The company's relevant range of activity varies from a low of 600 machine hours to a high of 1,100 machine hours, with the following data being available for the first six months of the year:

Month Utilities Machine Hours

January $ 8,700 800

February 8,360 720

March 8,950 810

April 9,360 920

May 9,625 950

June 9,150 900

The fixed utilities cost per month is:

$5,100.

$3,764.

$4,400.

$4,760.

12. The following information is available for Forrest Company: Sales price: $90 per unit Variable cost: $35 per unit Fixed cost: $37,500 If the variable cost per unit is increased by $7 and the total fixed cost is increased by $4,500, what will be the new break-even point in units?

1,000

875

1,429

467

13. Fliptop’s indirect materials cost for two recent months was as follows:

Production in Units Indirect Materials Cost

March 1,200 $2,100

October 1,400 $2,300

The cost behavior of indirect materials costs at Fliptop is best classified as:

Mixed

Variable

Fixed

14. The following data are available for Bendo Co.: Sales: $700,000 Variable cost: 390,000 Fixed cost: 250,000 Bendo’s break-even point in dollars is:

$696,429

$448,718

$700,000

$564,516

15. Wilson sells a single product for $70 that has a variable cost of $45. Fixed costs at the break-even point amount to $15 per unit. If the company sells one unit in excess of its break-even volume, the bottom-line profit will be:

$15.

$45.

$55.

$25

16. An example of a committed fixed cost is:

property taxes on a factory building.

executive travel expenses.

a training program for salespersons.

research and development for new products.

Homework is Completed By:

Writer Writer Name Amount Client Comments & Rating
Instant Homework Helper

ONLINE

Instant Homework Helper

$36

She helped me in last minute in a very reasonable price. She is a lifesaver, I got A+ grade in my homework, I will surely hire her again for my next assignments, Thumbs Up!

Order & Get This Solution Within 3 Hours in $25/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 3 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 6 Hours in $20/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 6 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

Order & Get This Solution Within 12 Hours in $15/Page

Custom Original Solution And Get A+ Grades

  • 100% Plagiarism Free
  • Proper APA/MLA/Harvard Referencing
  • Delivery in 12 Hours After Placing Order
  • Free Turnitin Report
  • Unlimited Revisions
  • Privacy Guaranteed

6 writers have sent their proposals to do this homework:

Essay Writing Help
Top Essay Tutor
Top Writing Guru
University Coursework Help
Online Assignment Help
Top Grade Essay
Writer Writer Name Offer Chat
Essay Writing Help

ONLINE

Essay Writing Help

I am a qualified and experienced Writer, Researcher, Tutor, analyst and Consultant. I hold MBA (Strategic Management) (Finance and Marketing) & CPA.K (Accounting and Finance.)

$62 Chat With Writer
Top Essay Tutor

ONLINE

Top Essay Tutor

I have more than 12 years of experience in managing online classes, exams, and quizzes on different websites like; Connect, McGraw-Hill, and Blackboard. I always provide a guarantee to my clients for their grades.

$65 Chat With Writer
Top Writing Guru

ONLINE

Top Writing Guru

I am an Academic writer with 10 years of experience. As an Academic writer, my aim is to generate unique content without Plagiarism as per the client’s requirements.

$60 Chat With Writer
University Coursework Help

ONLINE

University Coursework Help

Hi dear, I am ready to do your homework in a reasonable price.

$62 Chat With Writer
Online Assignment Help

ONLINE

Online Assignment Help

Hi dear, I am ready to do your homework in a reasonable price.

$55 Chat With Writer
Top Grade Essay

ONLINE

Top Grade Essay

Working on this platform from a couple of time with exposure of dynamic writing skills gathered with years experience on different other websites.

$62 Chat With Writer

Let our expert academic writers to help you in achieving a+ grades in your homework, assignment, quiz or exam.

Similar Homework Questions

History - English-Check-In Activity: - Community health - Raf officer pay scales - Maurice raving beauty and the beast - Global Supply Chains-Problem Set Time Series Forecasting - Udden wentworth grain size scale - Lsp - HEALTHCARE- ASSOCIATED INFECTIONS - World language performance assessment rubric - Sports illustrated media kit demographics - Electric cupcake maker recipes - Contingency Planning - Weeks vs united states - Delivering healthcare in america a systems approach pdf - Btec business level 3 unit 12 m1 - Exercise 5 5a periodic inventory costing lo p3 - I Need 1500 words on solution an International Management (BUSS 1006)-CW3-Fall-19-QP - How much car can i afford for 400 a month - Examples of central idea statements - Shadow health focused exam abdominal pain - The developing person through the lifespan 9th edition chapter 1 - Most reactive metal in group 1 - Disc 363 leadership competency review - Pca 2 55 tcl eco - Health care legislature - Acel leadership capability framework - Why fractional distillation is more efficient than simple distillation - Identifying Threats and Vulnerabilities in an IT Infrastructure - Suppose you plant a seed and observe that a tree - Colonial adventure tours case answers chapter 3 - 3x 4 2 9.5 - How to do a scenario summary in excel - Benefits of isometric drawing - All of the following might be part of a web site's middle-tier layer except: - Project 2 - In basket exercise in hrm - Ljmu astronomy distance learning - Amc methuen pitch perfect 3 - Saica handbook volume 2 - Value line publishing october 2002 case analysis - Bent little finger dominant or recessive - How to develop critical thinking skills in nursing - Team meals for away games - Assignment 3 business intelligence and data warehouses - Gcu doctoral dna - Great barrier reef biome - Which way does the wind usually blow - Article Critique - Adelaide uni past exams - Significance of curley's name - Mechanical Engineering Fundamentals Quiz - The last dance encountering death and dying quiz - A company began its fiscal year with inventory of - What is a picot question in research - Why you should wear sunscreen persuasive speech - Before you know it john bargh pdf - Why do organizations still have information deficiency problems - New innovations in mathematics - Fire pump flow test report - How to install mahout - Small rocky body orbiting the sun - St wilfrids school york - Each energy level has a maximum number of - Integrated financial model Excel - How to find radius of capillary tube - Blade cutting force calculation - Irwin stockfeeds melbourne vic - At&t inventory turnover - Questions - Hope required when growing roses in concrete - Discussion Board (Respond to student post) - Cpt laparoscopic partial gastrectomy procedure - How to properly apply proactive - West common lane teaching practice - Caledon concrete mixers case study - A church targeting different demographic - Titration for acetic acid in vinegar lab - Discuss the primary manner in which the concepts of this course can be applied to your current or future work position. - Decision problem marketing research example - Kim Woods p1C - How did the elements get their names - Nursing diagnosis for impaired verbal communication related to tracheostomy - Seebeck coefficient of iron - 20mm solid steel bar - Business ethics concepts and cases by manuel velasquez pdf - Big Data and the Internet of Things - Bob jones university dress code - Affordable Second Hand Restaurant Equipment for Sale - Vertiv liebert pdx password - Summary and Descriptive Statistics - Ccms helpdesk contact number - Stage 3 spelling program - Rias gifted test sample questions - Genetics - Martin luther king letter from birmingham jail essay - A measure of the amount of matter in an object - Value line publishing home depot lowes - If id ex mem wb - Intoto kitchens northwood hills