Question 22 Not yet answered Points out of 1 Which of the following components a

Question

Question 22 Not yet answered Points out of 1 Which of the following components are included in a mixed cost? Select one: F Flag question a. A sunk cost and an opportunity cost O b. A fixed cost and a variable cost c. A step cost and a semi-variable cost d. A product cost and a period cost Question 23A company has a cost that is $7.00 per unit at a volume of 10,000 units and $5.00 per unit at a volume of 14,000 units. What type of cost is this? Not yet answered Points out of 1 Select one: F Flag question a. Fixed costs b. Variable costs c. Mixed costs d. Incremental costs Question 24Which of the following is not a method that is used to estimate variable and fixed costs? Not yet answered Points out of 1 P Flag question a. Account analysis Select one: b. High-low method c. CVP analysis O d. Regression analysis Regression analysis: Question 25 Not yet answered

Explanation / Answer

Question : 22

Answer : Option ( b )

A fixed cost and a variable cost

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Question : 23

ANSWER : Option (a)

FIXED COST

Since at 10,000 units Total cost is 70,000$ and at 14,000 units Total cost is 70,000$ . There is no change in total cost . That is fixed cost doesn't change with change in output of units .

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Question : 24

Answer : Option (c)

CVP ANALYSIS

CVP analysis is used to determine the affect in companies operating income and net income due to changes in costs and volume of output of a company.

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Question : 25

Answer : Option ( a )

Uses all the available dates points to estimate a cost equation.

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Question : 26

Answer : Option ( c )

Relevant range is known

Relevant range is a range where the estimations and presictipr s are to be accurate

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Question : 27

Answer : Option ( a )

The selling price per unit is less than the variable cost per unit

Since contribution margin is equal to sale price per unit minus

Variable cost per unit . It should be negative only when selling price is lower than variable cost per unit.

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Question : 28

Answer : Option ( c )

Opportunity cost is not a component for cvp analysis .

In CVP analysis uses fixed or variable costs or both are used

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Question : 29

Answer : Option ( c )

The number of units sold declines is doesn't effect the break even points in units

Since Break even point in units formula is fixed cost divided by contribution per unit . There fore there is no role of number of units sold in determining Break even point in units

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Question : 30

Answer : Option ( c )

BEP ( units ) = 23,500 units

Explanation :

Fixed cost = 1,64,500 $

Selling price = 16 $ per uint

Variable cost = 9 $ per unit

Contribution per unit = selling price per unit - VC per unit

= 16 - 9 = $ 7 per unit

BEP ( in Units ) = Fixed cost / Contribution per unit

= 1,64,500 / 7 $ per unit

= 23,500 units.

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