Question 1

Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the company's average fixed costs per unit will be:
A)$11.50 per unit.
B)$4.00 per unit.
C)$7.50 per unit.
D)$12.00 per unit.

Accepted Answer

To find the average fixed cost per unit, we need to first calculate the total cost (fixed + variable) and then divide it by the number of units sold.

Total cost = Fixed cost + Variable cost 
Total cost = $90,000 + ($4.00 x 12,000) 
Total cost = $90,000 + $48,000 
Total cost = $138,000

Average fixed cost per unit = Fixed cost / Number of units sold 
Average fixed cost per unit = $90,000 / 12,000 
Average fixed cost per unit = $7.50

Therefore, the average fixed cost per unit for Paris Plastics is $7.50 per unit (Option C).

Question 2

Getting to school for your 8
A.M.class doesn't leave much time for breakfast,and you are quite hungry by the time class ends.It is a long walk to the cafeteria,the lines are long once you get there,and you find yourself having to decide between having breakfast and getting to your next class on time.Many of your friends have expressed the same problem.The administration has agreed to let you set up a table just outside the building where you will sell various snacks for $1 each.You have agreed to pay the administration $500 per month and salaries to your friends to run the business will be another $500 per month.It will cost you 50 cents each to buy the pre- packaged snacks.You believe you can sell 2,000 snack packs per month.
a.What are the total fixed costs per month?
b.What are the total variable costs per month?
c.What is the fixed cost per snack pack?
d.What is the variable cost per snack pack?
e.What is the average cost per snack pack?
f.What is the average profit margin per snack pack?
g.Based on your analysis,should you start the snack pack business?

Accepted Answer

The answer of  Getting to school for your 8
A.M.class...

Question 3

Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the company's total variable costs will be:
A)$ 90,000.
B)$192,000.
C)$144,000.
D)$ 48,000.

Accepted Answer

The total variable costs are calculated by multiplying the variable cost per unit ($4.00) by the number of units sold (12,000). Therefore, the total variable costs are $4.00 * 12,000 = $48,000.

Question 4

On the line in front of each statement,enter the letter corresponding to the term that best fits that statement.You may use a letter more than once and some letters may not be used at all.
 $$\begin{array} { | l | l | l | l | } 
\hline \text { A. } & \text { Direct costs } & \text { E. } & \text { Variable costs } \
\hline \text { B. } & \text { Marginal cost } & \text { F. } & \text { Indirect cost } \
\hline \text { C. } & \text { Average cost } & \text { G. } & \text { Surk cost } \
\hline \text { D. } & \text { Cunversion costs } & \text { H. } & \text { Differential cost } \
\hline
\end{array}$$ ___ The total cost divided by the total volume
___ The difference in cost between two alternative courses of action
___ The combination of direct labor and manufacturing overhead costs
___ The cost of producing one more unit
___ Costs that can be traced to the cost object

Accepted Answer

The answer of  On the line in front of...

Question 5

Differentiate between fixed and variable costs and give an example of each.

Accepted Answer

The answer of  Differentiate between fixed and variable costs...

Question 6

Smythe Manufacturing produces food processors.Their total fixed costs are $50,000.Its variable costs are $75.00 per food processor.As production of food processors increases,fixed costs will:
A)stay the same per unit.
B)decrease as sales increase.
C)increase as sales decrease.
D)decrease per unit as sales increase.

Accepted Answer

Fixed costs remain constant in total, but as production increases, the fixed cost per unit decreases because the same total cost is spread over more units.

Question 7

Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the total sales revenue will be:
A)$192,000.
B)$144,000.
C)$ 90,000.
D)$ 54,000.

Accepted Answer

The total sales revenue is calculated by multiplying the sales price per unit by the number of units sold: $16.00 * 12,000 = $192,000.

Question 8

A company's total costs are calculated by:
A)subtracting total fixed costs from total variable costs.
B)subtracting total variable costs from total fixed costs.
C)adding total fixed costs to total variable costs.
D)subtracting total fixed costs and total variable costs from sales.

Accepted Answer

The formula to calculate a company's total cost is to add total fixed costs to total variable costs. Fixed costs are expenses that do not change with the level of production, such as rent, while variable costs increase or decrease with activity, such as materials or labor. By adding both these costs, a business can determine its total operating expenses.

Question 9

A company produces toy airplanes at a variable cost of $21 per toy.If 6,000 toys are produced at a total variable cost of $126,000,the total variable cost at 4,000 toys will be:
A)$126,000.
B)$ 84,000.
C)$210,000.
D)none of the above.

Accepted Answer

To find out the total variable cost at 4,000 toys, we can use the concept of proportionality. We know that the company produces the toys at a variable cost of $21 per toy. Therefore, the cost per toy is constant, regardless of the number of toys produced.

We can set up the following proportion:

6,000 toys / $126,000 total cost = 4,000 toys / x total cost

Solving for x, we get:

x = (4,000 toys * $126,000 total cost) / 6,000 toys

x = $84,000

Therefore, the total variable cost at 4,000 toys will be $84,000. Hence, the best choice is B).

Question 10

How are average cost and marginal cost computed?

Accepted Answer

The answer of  How are average cost and marginal...

Question 11

A company has fixed costs of $75,000 per month.If sales double from 5,000 to 10,000 units during the month,fixed costs will:
A)remain the same.
B)double.
C)be cut in half.
D)be none of the above.

Accepted Answer

Fixed costs remain constant regardless of changes in sales volume. Therefore, even though sales have doubled, the fixed costs will remain at $75,000 per month.

Question 12

Match between columns
                        Premises: The total cost divided by the total volume
The difference in cost between two alternative courses of action
The combination of direct labor and manufacturing overhead costs
The cost of producing one more unit
Costs that can be traced to the cost object

Accepted Answer

The Answer of Direct costs and Marginal cost and Average is...

Question 13

Match between columns
                        Premises:  The combination of direct materials and direct labor
Costs that change in total in direct proportion to changes in volume
A cost that relates to the cost object, but cannot be traced to it
A cost that has already been incurred

Accepted Answer

The Answer of Direct costs and Marginal cost and Average is...

Question 14

Match between columns
                        Premises:  Revenue
Salaries expense
Customer service expense
Cost of goods manufactured
Cost of goods sold

Accepted Answer

The Answer of service company. and merchandising company. and manufacturing is...

Question 15

Match between columns
                        Premises:  Rent expense on factory building
 Sales supplies used
Factory supplies used
Indirect materials used
Wages of assembly line personnel
Cost of primary material used to make product
 Depreciation expense on office equipment
Rent expense on office facilities
Insurance expired on factory equipment
Utilities incurred in the office
Advertising expense
Taxes paid on factory building

Accepted Answer

The Answer of Direct materials and Selling and general expenses is...

Question 16

Match between columns
                        Premises: Direct materials used in factory
 Factory utilities
 Salespersons’ commissions
 Salary of plant manager
Indirect materials used in factory
Depreciation expense on store equipment
Indirect labor incurred in factory
Advertising expense
Direct labor incurred in factory
 Factory machinery repairs and maintenance
Depreciation expense on factory machinery
Supplies used in store
 Plant insurance expired

Accepted Answer

The Answer of Product and Period is...

Question 17

Match between columns
                        Premises:  Depreciation expense on equipment in factory
Delivery expense
Toll free line for customer orders
Customer support hot line
Assembly line workers’ wages

Accepted Answer

The Answer of Research and development and Design and Production is...

Question 18

Match between columns
                        Premises: Typically have a single category of inventory
Resell products they previously purchased ready-made from suppliers
Do not have inventory for resale
Produce its own inventory
Transform raw materials into new finished products
Ready to sell inventory of manufacturers
 Partially completed items of manufacturers

Accepted Answer

The Answer of Materials inventory and Service companies and Merchandise is...

Question 19

Match between columns
                        Premises: Generally has no inventory
Has three types of inventory
Inventory consists of freight-in and the cost of the product
Has the highest percentage of labor costs
Wal-Mart is this type of company

Accepted Answer

The Answer of Service company and Merchandising company and Manufacturing is...

Quiz 2: Building Blocks of Managerial Accounting

Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the company's average fixed costs per unit will be:

Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the company's total variable costs will be:

Differentiate between fixed and variable costs and give an example of each.

Smythe Manufacturing produces food processors.Their total fixed costs are $50,000.Its variable costs are $75.00 per food processor.As production of food processors increases,fixed costs will:

Paris Plastics has monthly fixed costs of $90,000,while its variable costs are $4.00 per unit.If the sales price of a unit is $16.00 and Paris Plastics sell 12,000 units,the total sales revenue will be:

A company's total costs are calculated by:

A company produces toy airplanes at a variable cost of $21 per toy.If 6,000 toys are produced at a total variable cost of $126,000,the total variable cost at 4,000 toys will be:

How are average cost and marginal cost computed?

A company has fixed costs of $75,000 per month.If sales double from 5,000 to 10,000 units during the month,fixed costs will:

select the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all

select the letter corresponding to the term that best fits that statement. You may use a letter more than once and some letters may not be used at all

Use the appropriate letter(s)to indicate if the following costs would be found on the income statement of a:

Use the correct choice to designate each item below.Assume a manufacturer.

Assume a manufacturer, Indicate whether each of the following costs is:

select the letter for the appropriate value chain activity Letters may be used more than once or not at all. Assume a manufacturer.

select the best choice

select the letter of the type of company Letters may be used more than once or not at all.