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

TWO PAGES ESSAY - Community windshield survey paper - Myshift creative activation com au - Kaiser modesto er wait time - Trends & issues in executive management for health care administrators - Assignment 3 APA format - The Deinsitiutionalization of American Marriage - Unit III Discussion Board - Hepburn regional park map - Cable companies are furious over this tiny device - Orbit rain sensor adjustment - Database design - Quiz - Crossing the bar poem analysis - Boiling temperature of petrol - Educ 812 final exam - Complications of myocardial infarction ati - Legislative worksheet sbar format how a bill becomes a law - Att com payoffnext for details - Battery world port lincoln - How do you speak pig latin - Scholar practitioner's guide to research design - Soc 120 week 2 assignment powerpoint - Final draft inclusivity analysis - Bicycle wheel moment of inertia - Heating curve of water lab answer key - Www cdc gov mobile applications sto web app html - Soul mind and body revision - Mussel slough is located in the - Official definitions of sport have important implications because they identify the activities that - Papa john's competitive strategy - La trobe pebble pad - Accounting Paper - Linney print mansfield jobs - Who are uber's main stakeholders - Fluke 435 download data - It is a miracle that curiosity survives formal education - Decrease in acid test ratio - Star bangled banner - 103.1 kg in stones and pounds - Which forecasting time frame best identifies seasonal effects - Professional capstone and practicum reflective journal - Colonial adventure tours case answers chapter - How to change fraction to decimal in casio calculator - Pros and cons of netflix global expansion - RESEARCH PAPER - 20 page power point - Excel chapter 3 grader project g - "Failing to Reject The Null" - How many groups of 10 milliliters are in 1 liter - 26 derribong close karana downs qld 4306 - Hera's rebellion against zeus - Managing Operations - Essay revision - Disaster's Impact - Clayton industries case study - Cold water and hot water supply system - Specsavers prescription safety glasses - Finance - Representing a democracy - Volvo trucks penetrating the us market case analysis - Is iron more reactive than copper - 12.5 study guide answers biology - Learnlink sa gov au - Counselor impairment - Database tables for restaurant management system - Taxi subsidy scheme wa - Tu lo sai baritone - The wall street journal classroom edition chapter 1 answers - IPM plan - Community health needs assessment essay - Cimarron bahia grass killer - Principles of modern software management - Apa essay - Rabbi jonathan sacks ted talk transcript - Vision max cinema formerly cinema 95 - HU 2000 - Sd fine chemicals tarapur - Intercultural communication exam - Mathematics life skills outcomes - Consider the circuit shown in figure 1 - Product management plan template - Www lufthansa com us en free baggage rules - What is great bath - Nursing multidimensional care - Break even point microeconomics - Acc 202 module 2 assignment - Haunting in connecticut jonah - Mit 12 subjects csu - Air france excel - The liquid in the open tube manometer is mercury - Cec grid connect design accreditation - Aps talent management guide - Pros and cons of zachman framework - 1 finsbury avenue ec2m 2pp - Vagisil syncope - Osmosis with dialysis tubing experiment - Leader competencies essay - Gopro case analysis - How can you show that air expands on heating