post acc211 unit 3 and 4 quiz

Unit 3

• Question
1
3 out of 3 points

Redford, Inc. has provided the
following data:
Sales Price
$200.00 per unit
Sales 6,000 Units
Fixed Cost
$300,000
Variable cost
$100.00 per unit
If the dollar contribution margin per unit is increased by
10%, total fixed cost is decreased by 20%, and all other factors remain the
same, net income will:

A.
decrease by $60,000.
B.
increase by $60,000.
C.
increase by $120,000.
D.
. increase by $420,000.

• Question
2
3 out of 3 points

Gardner Manufacturing Company produces a product that sells
for $120. A selling commission of 10% of the selling price is paid on each unit
sold. Variable manufacturing costs are $60 per unit. Fixed manufacturing costs
are $20 per unit based on the current level of activity, and fixed selling and
administrative costs are $16 per unit. The contribution margin per unit is:

a.
$104
b.
$72
c.
$60
d.
$48

• Question
3
3 out of 3 points

Iacopi Corporation is a
wholesaler that sells a single product. Management has provided the following
cost data for two levels of monthly sales volume. The company sells the product
for $172.50 per unit.
Sales volume (units)
4,000
5,000
Cost of sales
$307,600 $384,500
Selling and administrative costs $321,200
$337,000

The best estimate of the total contribution margin when
4,300 units are sold is:

a.
$343,140
b.
$65,790
c.
$121,260
d.
$411,080

• Question
4
3 out of 3 points

Shipping expense is $9,000 for
8,000 pounds shipped and $11,250 for 11,000 pounds shipped. Assuming that this
activity is within the relevant range, if the company ships 9,000 pounds, its
expected shipping expense is closest to:

: a.
$10,125
b.
$8,583
c.
$9,972
d.
$9,750

• Question
5
3 out of 3 points

Fixed cost per unit increases as
activity decreases and decreases as activity increases.

True
False

• Question
6
3 out of 3 points

Within the relevant range, the
variable cost per unit:

A.

remains constant as activity changes

B.

increases as activity increases.

C.

decreases as activity increases.

D.
can increase or decrease as the activity changes.

• Question
1
3 out of 3 points

Variable costing is also known
as:

A.
Direct costing.
B.
Indirect costing.
C.
Marginal costing
D.
Both A and C

• Question
2
3 out of 3 points

Using absorption costing, a unit
of product includes what costs?

: A.
Direct materials and direct labor.
B.
Direct materials, direct labor, and fixed overhead.
C.
Direct materials, direct labor, and variable overhead.
D.
Direct materials, direct labor, variable overhead, and fixed
overhead.

• Question
3
3 out of 3 points

Product cost under absorption
costing is characteristically:

A.
Higher than under variable costing.
B.
Lower than under variable costing.
C.
Equal to variable costing.
D.
Higher sometimes and lower sometimes than variable costing.

• Question
4
3 out of 3 points

A segment of a business responsible for both revenues and
expenses would be referred to as:

A.
Cost Center
B.
Investment Center
C.
Profit Center
D.
Residual Income

• Question
5
3 out of 3 points

Variable costing is attractive to
managers as an alternative to absorption costing because:

A.
Absorption costing makes distinctions between fixed and
variable product costs.
B.
Absorption costing is well suited to CVP analysis
techniques.
C.
Absorption costing provides useful tools to managers for
planning and control.
D.
To generate data for CVP analysis, considerable time would
have to be invested to rework income statements constructed under absorption
costing.

• Question
6
3 out of 3 points

When production is equal to
sales, which of the following is true?

A.
No change occurs to inventories for either absorption
costing or variable costing methods.
B.
The use of absorption costing produces a higher net income
than the use of variable costing.
C.
The use of absorption costing produces a lower net income
than the use of variable costing.
D.
The use of absorption costing causes inventory value to
increase more than they would through the use of variable costing.