I was hoping someone could check over my answers and help me with some accountin

Question

I was hoping someone could check over my answers and help me with some accounting problems im brushing up on ?Thank you.

1. As production levels decrease the fixed cost per unit:(I said C)

A) decreases

B) increases

C) stays the same

D) none of the above

2. Even though there is a slight change in the sales mix, the breakeven point is the same.( I said false)

True

False

3. If production exceeds sales, the net income with respect to absorption costing and variable costing.I chose (C)

A) is the same

B) lower under absorption

C) higher under absorption

D) higher under variable

5. As production levels increase the variable cost per unit: I chose (c)

A) increases

B) decreases

C) stays the same

D) none of the above

6. There is a fixed cost element in ending inventory using the variable costing approach.(I said true)

True

False

7.

Lines, Inc. applies overhead at the standard rate of $20/units, based on anticipated production of 2,000 units. If Line's actual overhead is $41,000, the overhead volume variance is:(I said B)

A) 1,000 favorable

B) 1,000 unfavorable

C) cannot tell from data given

D) none of the above

8. The present value of cash flow allows an individual to assess( B)

A the value of a present cash flow.

B) the value of a stream of cash flows in terms of the best alternative.

C) Both A and B

D) Neither A nor B

Thank you in advance!

Explanation / Answer

1) B increases , fixed cost remains same in total but per unit cost changes with the production level 2)True   , change in sales mix does not change the break even point , only the precentage allocated to products change but overall it remains same 3)Higher under absorption costing 5)Stays the same 6)False since under variable costing manufacturing cost consists of only variable elements 7)C cannot tell from given data since we need to calulated standard overhead for which we need actual output 8)B

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.