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A series of exercises and questions related to cost accounting principles. It covers topics such as break-even analysis, contribution margin, cost-volume-profit analysis, and special order decisions. The exercises provide practical applications of these concepts, allowing students to test their understanding and develop problem-solving skills.
Typology: Exams
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Question 1
a) (^) A decrease in the cost of direct materials used in all three products b) (^) Increasing scissors’ selling price c) (^) An increase in the cost of direct materials used in all three products d) (^) An increase in the demand for rocks View Feedback Question 2
Sales 2,000 units Sales price $50/unit Variable cost $30/unit Fixed cost $25,
a) (^) It will decrease by $5,000. b) (^) It will decrease by $1,000. c) (^) It will increase by $1,000.
d) (^) It will increase by $6,000. View Feedback Question 3
Sales $3,120, Variable costs 1,920, Contribution margin 1,200, Fixed costs 1,380, Profit/loss $(180,000)
a) (^) 143,750 units b) (^) 200,000 units c) (^) 230,000 units d) (^) 3,588,000 units View Feedback Question 4
a) (^) $100, b) (^) $122,
Question 7
a) (^) $3. b) (^) $4. c) (^) $5. d) (^) Indeterminable with the information provided View Feedback Question 8
Total Per unit Sales (10,000 units) $250,000 $25. Variable costs: Direct manufacturing 90,000 9. Manufacturing overhead 20,000 2. Selling and administration 5,000 0. Contribution margin (CM) 135,000 13. Fixed costs: Selling and administration 20,000 2. Manufacturing overhead 25,000 2. Pre-tax income $ 90,000 9.
a) (^) Decrease by $21, b) (^) Increase by $1, c) (^) Increase by $30, d) (^) Increase by $21, View Feedback Question 9
a) (^) Selling price is linear. b) (^) Sales volume is constant. c) (^) In multiproduct companies, the sales mix is constant. d) (^) Only fixed costs are relevant. View Feedback Question 10
a) (^) Fixed period cost b) (^) Variable period cost c) (^) Variable product cost d) (^) Fixed product cost View Feedback Question 2
a) (^) Variable product cost b) (^) Fixed product cost c) (^) Fixed period cost d) (^) Variable period cost View Feedback Question 3
a) (^) Variable product cost b) (^) Fixed product cost
c) (^) Variable period cost d) (^) Fixed period cost View Feedback Question 4
a) $8, b) $19, c) $23, d) $36, View Feedback Question 5
Month Machine hours Production cost July 15,000 $12,
Wallets Belts Selling price per unit $30 $ Cost per unit: Variable manufacturing costs $8 $ Variable marketing costs $2 $ Fixed manufacturing costs $5 $ Fixed marketing costs $6 $ Manufacturing Wallets (per unit) 15 minutes Belts (per unit) 40 minutes Quarterly direct labour hour (DLH) capacity 3,600 hours
a) (^) The selling price of wallets and belts b) (^) The unit contribution margin of wallets and belts c) (^) The contribution margin per direct labour hour of wallets and belts
d) (^) The total cost of wallets and belts View Feedback Question 3
a) When considering whether to accept a special order, you need to consider whether variable costs excee costs. b) (^) When considering whether to accept a special order, you need to consider both opportunity costs and s c) When considering whether to accept a special order, you need to consider the costs to lease an asset ver costs to buy it. d) (^) When considering whether to accept a special order, you need to consider short-term and long-term im View Feedback Question 4
Product A Product B Product C Sales price $120 $180 $ Costs: Direct materials 24 64 32 Direct labour 54 28 110
a) (^) Scoops risks an inability to finance the moulds. b) (^) Scoops risks alienating current customers. c) (^) Scoops risks additional regulatory requirements. d) (^) Scoops risks making a profit. View Feedback Question 7
a) (^) Funds spent on market research
b) (^) Retooling expenses c) (^) Costs from head office allocation d) (^) Lease cost per square foot for the factory space View Feedback Question 8
Sales volume (units) 12,500 12,500 22, Unit selling price $225 $325 $ Variable manufacturing cost per unit 85 110 165 Contribution margin (CM) per unit $140 $215 $ CX-24 DR-53 JX-250 Totals Budgeted sales $2,812,500 $4,062,500 $10,260,000 $17,135, Variable costs 1,062,500 1,375,000 3,762,000 6,199, CM $1,750,000 $2,687,500 $6,498,000 $10,935, Fixed costs 4,800, Operating income $6,135,
a) 4.86% increase
Variable costs 1,368,000 1,932,000 672, Fixed costs 336,000 450,000 270,
a) (^) $148,600 loss b) (^) $129,000 income c) (^) $220,600 loss d) (^) $256,600 loss View Feedback Question 1
a) A process that involves all aspects of the organization in the strategic plan b) A process by which the vision, mission, and values are determined c) A process that ensures the organization is aligned with the organizational goals d) A process that determines the best competitive strategy View Feedback Question 2
a) The promise a business makes to price-match the competition b) The unique service or feature that is attractive to customers c) The pricing strategy designed to maximize profits d) The assurance of product quality, price, and placement. View Feedback Question 3
b) A vivid description of where the organization is going. It is future oriented, meant to inspire and give d an internal audience. c) A declaration of the core beliefs, principles, and philosophies that comprise the organizational culture, internally and externally. d) (^) A declaration of an organization’s strategic direction. View Feedback