ACC 561 Week 4 Quiz Answers

1. ACC 561 Week 4 Quiz Bywww.StudentWhiz.com • Copyright. All Rights Reserved by www.StudentsWhiz.com

2. 1. A variable cost is a cost that • may or may not be incurred, depending on management's discretion. • occurs at various times during the year. • varies in total in proportion to changes in the level of activity. • varies per unit at every level of activity. 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 • Increases Decreases • Remains constant Remains constant • Decreases Remains constant • Remains constant Decreases Want help? Click to download ACC 561 Week 4 Quiz • Copyright. All Rights Reserved by www.StudentsWhiz.com

3. 3. A fixed cost is a cost which • remains constant per unit with changes in the level of activity. • remains constant in total with changes in the level of activity. • varies inversely in total with changes in the level of activity. • varies in total with changes in the level of activity. 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? • 80% • 20% • 30% • 70% Want more details? Download now ACC 561 Week 5 Quiz • Copyright. All Rights Reserved by www.StudentsWhiz.com

4. 5. Contribution margin • is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. • equals sales revenue minus variable costs. • is always the same as gross profit margin. • excludes variable selling costs from its calculation. 6. The equation which reflects a CVP income statement is • Sales + Fixed costs = Variable costs + Net income. • Sales – Variable costs + Fixed costs = Net income. • Sales – Variable costs – Fixed costs = Net income. • Sales = Cost of goods sold + Operating expenses + Net income. Want help? Click to download ACC 561 Week 4 Quiz • Copyright. All Rights Reserved by www.StudentsWhiz.com

5. 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 • 50,000 units. • 30,000 units. • 75,000 units. • 300,000 units. 8. Only direct materials, direct labor, and variable manufacturing overhead costs are considered product costs when using • variable costing. • absorption costing. • product costing. full costing. • Copyright. All Rights Reserved by www.StudentsWhiz.com

6. 9. Under absorption costing and variable costing, how are fixed manufacturing costs treated? Absorption Variable • Period Cost Period Cost • Product Cost Product Cost • Period Cost Product Cost • Product Cost Period Cost Want help? Click to download ACC 561 Week 4 Quiz 10. Management may be tempted to overproduce when using • absorption costing, in order to increase net income. • absorption costing, in order to decrease net income. • variable costing, in order to increase net income. variable costing, in order to decrease net income. • Copyright. All Rights Reserved by www.StudentsWhiz.com

7. About Author This article covers the topic for the University Of Phoenix ACC 561 Week 4 Quiz.The author is working in the field of education from last 5 years. This article covers the basic of ACC 561 Week 4 Quiz Answers from UOP. Other topics in the class are as follows: ACC 561 Week 1 Quiz ACC 561 Week 2 Quiz ACC 561 Week 3 Quiz ACC 561 Week 4 Quiz ACC 561 Week 5 Quiz ACC 561 Week 6 Quiz For further information on the above topics you can always visit the website www.StudentWhiz.com • Copyright. All Rights Reserved by www.StudentsWhiz.com