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