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1 | |
There are three fundamental cost/volume/profit (CVP) relationships. Which of the following is not one of these?
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| | A) | total costs = variable costs + fixed costs
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| | B) | contribution = total costs - variable costs
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| | C) | profit = total revenue - total costs
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| | D) | contribution = total revenue - variable costs
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2 | |
CVP (contribution/volume/profit) analysis does not assume that
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| | A) | total costs are divided into fixed and variable costs
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| | B) | output is the only factor affecting costs
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| | C) | there is no uncertainty
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| | D) | the behaviour of costs and revenues is not linear
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3 | |
At the break-even point which of the following relationships does not hold true?
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| | A) | sales value = fixed costs/contribution to sales ratio%
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| | B) | profit = contribution + fixed costs
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| | C) | contribution = fixed costs
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| | D) | number of units = fixed costs/contribution per unit
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4 | |
Questions 4 and 5 refer to the following diagram:  <![CDATA[<a onClick="window.open('/olcweb/cgi/pluginpop.cgi?it=gif::ch09a::/sites/dl/free/0077098250/66362/ch09a.gif','popWin', 'width=506,height=102,resizable,scrollbars');" href="#"><img valign="absmiddle" height="16" width="16" border="0" src="/olcweb/styles/shared/linkicons/image.gif">ch09a (50.0K)</a>]]>ch09a
How many products are sold at the break-even point? |
| | A) | 10,000
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| | B) | 2,000
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| | C) | 3,000
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| | D) | 4,000
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5 | |
What is the profit for March?
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| | A) | 30,000 pounds
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| | B) | 50,000 pounds
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| | C) | 40,000 pounds
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| | D) | 20,000 pounds
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6 | |
A company's sales for September are 500,000 pounds and its variable cost of sales is 200,000 pounds. If its break-even sales are 300,000 pounds what is the profit for September? |
| | A) | 300,000 pounds |
| | B) | 120,000 pounds |
| | C) | 180,000 pounds |
| | D) | 200,000 pounds |
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7 | |
Which of the following statements is not one of the bases of activity based costing (ABC)?
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| | A) | products cause costs
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| | B) | activities cause costs
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| | C) | products consume activities
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| | D) | activities can be managed
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8 | |
Throughput accounting (TA) is a relatively new development in management accounting. In TA, throughput is defined as
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| | A) | direct labour plus direct materials costs
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| | B) | sales revenue less direct labour costs
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| | C) | sales revenue less direct materials costs
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| | D) | sales revenue plus direct labour costs
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9 | |
'A structured approach to determining the cost at which a proposed product with specific functionality and quality must be produced in order to generate the desired level of profitability at the product’s anticipated selling price' best defines
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| | A) | Life cycle costing
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| | B) | Target costing
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| | C) | Benchmarking
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| | D) | Manufacturing resource planning (MRPII)
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10 | |
'The techniques used to measure the difference between actual costs incurred within each of the processes of manufacturing/supply of goods/services, and the equivalent costs if there were no failures within each of the processes' best describes
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| | A) | Kaizen
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| | B) | Life cycle costing
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| | C) | Cost of quality (COQ)
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| | D) | Total quality management (TQM)
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2003 A McGraw-Hill Online Learning Centre