Acc650 Module 4 - Cost Estimation and Cvp Analysis Essay examples

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1. DuChien Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units?
a. $150,000. $151,000. $152,000. $153,000. Some other amount not listed above.
2. The difference between budgeted sales revenue and break-even sales revenue is the:
a. contribution margin. contribution-margin ratio. safety margin. target net profit. operating leverage.
3. At a volume of 20,000 units, Dries
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sloping straight line. jagged line. vertical straight line. curved line. horizontal straight line.

7. A manager who wants to determine the percentage impact on income of a given percentage change in sales would multiply the percentage increase/decrease in sales revenue by the:
a. contribution margin. gross margin. operating leverage factor. safety margin. contribution-margin ratio

8. A forecast of a cost at a particular level of activity is termed:
a. cost estimation. cost prediction. cost behavior. cost analysis. cost approximation.

9. Ribco Co. makes and sells only one product. The unit contribution margin is $6 and the break-even point in unit sales is 24,000. The company's fixed costs are:
a. $4,000. $14,400. $40,000. $144,000. an amount other than those above.

10. Booster, Inc. recently conducted a least-squares regression analysis to predict selling expenses. The company has constructed the following regression equation: Y = 329,000 + 7.80X. Which of the following statements is false if the primary cost driver is number of units sold?
a. The company anticipates $329,000 of fixed selling expenses. "Y" represents total selling expenses. The company expects both variable and fixed selling expenses. For each unit sold, total selling expenses will increase by $7.80. "X" represents the number of hours worked during the period.
11. Swanson and Associates presently leases a copy machine under

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