questions: In traditional costing systems, overhead segmented into major categor
ID: 2371722 • Letter: Q
Question
questions:
In traditional costing systems, overhead segmented into major categories and is allocated based on several cost drivers True False If the management accountant does a better job of projecting cost, then management is able to make better decisions True False As long as we are in the relevant range variable costs will remain constant in total. True False Current trends in many organizations a higher degree of overhead/ indirect spending and a need for management accountants to properly assign these costs True False To achieve accurate costing, a high degree of correlation must exist between the cost driver and the actual consumption of the activity cost pool True False The CVP income statement classifies costs as variable or fixed and computes a contribution margin. True False In CVP analysis, cost includes manufacturing costs but not selling and administrative expenses. True False The cost-volume-profit analysis approach provides a method to assess how many units and or sales dollars we need to achieve to make a desired profit True False If a management accountant provides costs that include significant excess capacity this is helpful to management in their pricing and profitability analysis True False TSox's are planning its upcoming year. It anticipates selling 50,000 t-shirts, with a price of $20 each. The variable cost per t-shirt is $10. The fixed costs to run the operation are $300,000 per year. How much profit (ignore taxes) will ABC make if it achieves the projections for the upcoming year? 150,000 200,000 250,000 0 TSox's are planning its upcoming year. It anticipates selling 50,000 t-shirts, with a price of $20 each. The variable cost per t-shirt is $10. The fixed costs to run the operation are $300,000 per year. What is the break even point in units? 15,000 20,000 30,000 50,000 TSox's are planning its upcoming year. It anticipates selling t-shirts, with a price of $20 each. The variable cost per t-shirt is $10. The fixed costs to run the operation are $300,000 per year. If the desired profit (ignoring taxes) is $400,000 how many t-shirts will they need to sell? 50,000 70,000 45,000 80,000 TSox's are planning its upcoming year. It anticipates selling 50,000 t-shirts, with a price of $20 each. The variable cost per t-shirt is $10. If prices drop by 20% and fixed cost increase as noted what is the new break even point? The fixed costs have now increased to $420,000 per year. 50,000 60,000 30,000 70,000 If an organization does not use ABC and as result does not properly assign the right costs to a cost object- what are some of the potential problems this may create? From the article Measure Cost Right, describe the major findings/ breakthroughs the authors provide vs. traditional costing systems? What do the authors mean when they refer to the death spiral?Explanation / Answer
1)False ; a single volume based cost driver
2)True
3)True
4)True
5)true
6)True
7)false
8)True
9)true
10)b
11)c
12)c
13)a
14)
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