ACC 350 TEST 2 REVIEW (Questions & Answers)

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A company that sells multiple products will always set selling prices such that all products have the same contribution margin. When the total fixed costs increases, the contribution margin per unit ... ________. Which of the following is considered a period cost under variable costing but not under absorption costing? A variable costing income statement is used for ________. Neptune Company sold 2 comma 1002,100 units in November at a price of $ 40$40 per unit. The variable cost is $ 25$25 per unit. Calculate the total contribution margin. Tanaka Company has fixed costs of $14,000. Their contribution margin ratio is 40% and ratio of selling expenses to sales is 20%. What is the breakeven point in sales dollars? An increase in selling price per unit decreases the contribution margin per unit. When the total fixed costs decreases, the breakeven point ________. A(n) ________ groups cost by behavior; that is, costs are classified as either variable costs or fixed costs. Franco Company has variable costs of $0.65 per unit of product. In October, the volume of production was 24,000 units and units sold were 23,000. The total production costs incurred were $32,200. What are the fixed costs per month? Diaz Foods produces a gourmet salsa which sells for $28 per unit. Variable costs are $8 per unit, and fixed costs are $7,000 per month. If Diaz expects to sell 1,700 units, compute the margin of safety in units. Which of the following costs does not change in total despite changes in volume? The degree of operating leverage can be measured by ________. Which of the following is a period cost? A variable costing income statement is used for ________. In variable costing, fixed manufacturing overhead is considered a period cost because ________. When the total fixed costs increases, the breakeven point ________. The fixed costs per unit will ________. An increase in selling price per unit decreases the contribution margin per unit. Which of the following will lower the breakeven point? An increase in selling price per unit increases the number of units required to break even. Different types of costs Total cost formula A variable costing income statement is used for ________. A company that sells multiple products will always set selling prices such that all products have the same contribution margin. An increase in selling price per unit decreases the contribution margin per unit. Which of the following is considered a period cost under variable costing but not under absorption costing? When the total fixed costs increases, the breakeven point ________. Which of the following costs does not change in total despite changes in volume? Contribution margin ratio is the ratio of contribution margin to ________. If a company reduces its fixed costs, the operating income will increase by the same amount as the cost reduction. Which of the following will lower the breakeven point? In variable costing, fixed manufacturing overhead is considered a period cost because ________. If the variable cost per unit decreases, the total number of units required to breakeven will increase. Which of the following statements is true of the behavior of total fixed costs, within the relevant range? An increase in selling price per unit increases the number of units required to break even. A(n) ________ groups cost by behavior; that is, costs are classified as either variable costs or fixed costs. [Show More]

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