Unlock document.
This document is partially blurred.
Unlock all pages and 1 million more documents.
Get Access
Chapter 12 Managerial Accounting and Cost-Volume-Profit
Relationships Answer Key
Multiple Choice Questions
1.
Managerial accounting supports the management process most significantly by:
2.
Activities included in a generally accepted definition of management accounting include:
3.
Which of the following activities is
not
part of the management planning and control
cycle?
4.
Performance analysis in the planning and control cycle relates to the act of:
5.
Which of the following statements does
not
describe a characteristic of management
accounting?
6.
Managerial accounting, as compared to financial accounting:
7.
Management accounting is:
8.
Managerial accounting, as opposed to financial accounting, is primarily concerned with:
9.
Managerial accounting can best be described as:
10.
Simplifying assumptions made when using cost behavior pattern data include:
11.
The relevant range concept refers to:
12.
Which of the following is another term for mixed costs?
13.
As the total volume of activity changes:
14.
Expressing fixed costs on a per unit basis of activity is misleading because:
15.
The formula for expressing the total of a fixed, variable, or mixed cost at any level of
activity is:
16.
When a cost formula is used to describe a mixed (semi-variable) cost behavior pattern,
total costs are expected to increase and per unit variable costs are expected to:
17.
Cost behavior refers to:
18.
When the cost behavior pattern has been identified as fixed at a certain volume of
activity:
19.
Knowledge about the behavior pattern of a cost is important to understanding the effect
on net income of a change in sales volume because as sales volume changes:
20.
As the level of activity increases:
21.
As the level of activity decreases:
22.
An example of a cost that is likely to have a variable behavior pattern is:
23.
An example of a cost likely to have a fixed behavior pattern is:
24.
An example of a cost likely to have a mixed behavior pattern is:
25.
The term "relevant range" refers to:
26.
When the firm's activity requires it to operate at a level above the upper boundary of the
relevant range, fixed expenses are likely to:
27.
Which of the following is the correct calculation for the contribution margin ratio?
28.
The cost of a single unit of production in excess of the break-even point in units is:
29.
What percentage of the contribution margin is profit on units sold in excess of the break-
even point?
30.
The concept of operating leverage refers to which of the following?
31.
To which function of management is CVP analysis most applicable?
32.
The scattergram allows cost-volume relationships to be visually scanned for outlier
observations that should be:
33.
When the high-low method of estimating a cost behavior pattern is used:
34.
Month
Total
Maintenance
Cost
Production
Volume (units)
January
$1,880
1,750 units
February
$1,800
1,500 units
March
$2,200
2,500 units
April
$2,120
2,250 units
May
$2,300
2,750 units
Using the high-low method, the variable rate for maintenance is:
35.
Month
Total
Maintenance
Cost
Production
Volume (units)
January
$1,880
1,750 units
February
$1,800
1,500 units
March
$2,200
2,500 units
April
$2,120
2,250 units
May
$2,300
2,750 units
Using the high-low method, the monthly fixed component of maintenance cost is:
36.
The cost formula for monthly customer order processing cost has been established as
$100 + $0.15 per order. It is expected that 5,600 orders will be processed in May and 6,400
in June. Total order processing costs for May and June combined will be estimated to be:
37.
An income statement organized by cost behavior does not include:
