eQuizShow
Managerial Accounting
Cost Concept
Question: True of False:
Within the relevant range, a change in activity results in a change in total variable cost and the per unit fixed cost.
Answer: TRUE
Question: True or False:
Fixed costs remain constant in total, but vary inversely with changes in activity when expressed on a per unit basis.
Answer: True
Question: Its quick, its dirty and it can show if multiple mixed costs are linear.
Answer: Scattergraph
Question: This is the formula for a mixed cost.
Answer: Y = a + b(X)
Question: This is the equation for fixed cost in the Least-Squares Regression Method.
Answer: Fixed Cost = (Σy-bΣx)/n
CVP Analysis
Question: The ratio of variable expenses to sales.
Answer:
Variable Expense Ratio
Question: A powerful tool that helps managers understand the relationships among cost, volume and profit.
Answer: Cost-Volume-Profit Analysis
Question: What is the Unit Contribution Margin formula?a.) P / V
b.) P + V
c.) P x V
d.) P - V
Answer: D.) P - V
Question: How do you compute for the Total Variable Expenses?a.) P - Q
b.) V x Q
c.) (P x V) Q - F
d.) Unit CM x Q
Answer: B. V x Q
Question: An illustration that sows the relationship among revenue, cost, profit and volume is called _____________:a.) Unit Contribution Graph
b.) Profitability Graph
c.) Cost-Volume-Profit Graph
d.) Regression Graph
Answer: c.) Cost-Volume-Profit Graph
Break Even Point
Question: At break-even point, profit is?
Answer: Zero
Question: The formula for Break-Even Point in units is...
Answer: BEP = fc/unit cm
Question: Coffee Lovers Cafe sells its coffee at P25.00 per cup. Variable cost per cup is at P9.00. The cafe's average monthly fixed expense amounts to P10,000. How many cups of coffee does the cafe need to sell to break-even?
Answer: 625 cups
Question: Coffee Lovers Cafe sells its cup of coffee for P25.00. Variable expenses is at P9.00 per cup. The cafe's monthly fixed expense amounts to P10,000. How many cups of coffee does the cafe need to sell to earn P10,000 profit?
Answer: 1250 cups
Question: At what selling price should Coffee Lovers Cafe sell its cup of coffee to lower the break-even point at 555 cups given the following information.
Current Selling Price = P25.00
Variable Cost = P9.00
Total Fixed Expense = P10,000
Current Break-even in Units = 625 cups
Answer: P28
Absorption
Question: Under variable costing, only variable production costs are treated as product costs. True or False?
Answer: True
Question:
Absorption costing treats fixed manufacturing overhead as a period cost. True or False?
Answer: False
Question: How would the following costs be classified (product or period) under variable costing at a retail clothing store?
Cost of purchasing clothing Sales commissions
A) Product Product
B) Product Period
C) Period Product
D) Period Period
Answer: B
Question: TeaCup Corp. manufactures and sells a hand held calculator. The following information relates to TeaCup's operations for last year:
Unit product cost under variable costing P 5.20 per unit
Fixed manufacturing overhead cost for the year P260,000
Fixed selling and administrative cost for the year P180,000
Units produced and sold 400,000
What is TeaCup's unit product cost under absorption costing for last year?
A) P 4.10
B) P 4.55
C) P 5.85
D) P 6.30
Answer: C) P 5.85
Question: Mabuhay Inc. manufactures a variety of products. Variable costing net operating income was P96,300 last year and ending inventory decreased by 2,600 units. Fixed manufacturing overhead cost was P1 per unit. What was the absorption costing net operating income last year?
A) P 2,600
B) P 93,700
C) P 96,300
D) P 98,900
Answer: C) P 96,300
Absorption costing net income =Variable costing net income − fixed manufacturing overhead costs released frominventory
= P96,300 − [2,600 × P1] = P96,300− P2,600 = P93,700
Anything Goes
Question: What team did Gilas Pilipinas beat in the FIBA world cup?
Answer: Senegal
Question: How many colors are there in a rainbow?
Answer: 7
ROYGIV or Red, Orange, Yellow, Green, Blue, Indigo and Violet
Question: The 4th President of The Philippines
Answer: Sergio Osmena
Question: What McDonald's food product does Grimace represents?
Answer: blueberry milkshake
Question: The real name of this famous American Rapper and Producer is Shawn Corey Carter.
Answer: Jay-Z