ACC561 ACC/561 WEEK 4 QUIZ (SCORE 100%)

Question 1

A variable cost is a cost that

Question 2

An increase in the level of activity will have the following effects on unit costs for variable and fixed costs

Unit Variable Cost     Unit Fixed Cost 
Question 3

A fixed cost is a cost which

Question 4

Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio?

Question 5

Contribution margin
Question 6

The equation which reflects a CVP income statement is

Question 7

A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $150,000. The number of units the company must sell to break even is

Question 8

Only direct materials, direct labor, and variable manufacturing overhead costs are considered product costs when using

Question 9

Under absorption costing and variable costing, how are fixed manufacturing costs treated?

Absorption      Variable

Question 10

Management may be tempted to overproduce when using