25 Multiples Choice Questions of Accounting Principles II - Quiz 1 | ACCT 202, Quizzes of Financial Accounting

Download 25 Multiples Choice Questions of Accounting Principles II - Quiz 1 | ACCT 202 and more Quizzes Financial Accounting in PDF only on Docsity! Indiana University of Pennsylvania Department of Accounting ACCT 202: Accounting Principles II Sample Quiz for Chapter 18 Circle the best answer. 1. What is a cost whose total amount changes in direct proportion to a change in volume? A) mixed cost B) fixed cost C) irrelevant cost D) variable cost 2. Which of the following costs is an example of a fixed cost? A) delivery costs B) salary of plant manager C) direct materials D) sales commissions 3. If production increases by 15%, how will total variable costs likely react? A) remain the same B) decrease by 15% C) increase by 7.5% D) increase by 15% 4. Which of the following is a characteristic of a variable cost? A) Variable costs are variable per unit, and fixed in total. B) Variable costs vary in total with production and sales. C) Variable costs do not change in total over the relevant range. D) All of the above are characteristics of variable costs. 5. Renting a car and paying $15 per day plus $.03 per mile driven is an example of what type of cost? A) variable cost B) conversion cost C) fixed cost D) mixed cost 6. The long distance company that you use charges $5.00 per month and $0.10 per minute per call. If your current bill is $25.00, how many minutes did you use? A) 250 minutes B) 100 minutes C) 200 minutes D) 150 minutes 7. Jenny was reviewing the water bill for her doggy day spa and determined that her highest bill, $3,000, occurred in July when she washed 2,000 dogs and her lowest bill, $2,000, occurred in November when she washed 1,000 dogs. What was the variable rate for Jenny's water bill? A) $.67 B) $1.00 C) $0.50 D) $2.00 8. Jenny was reviewing the water bill for her doggy day spa and determined that her highest bill, $3,000, occurred in July when she washed 2,000 dogs and her lowest bill, $2,000, occurred in November when she washed 1,000 dogs. What was the fixed rate for Jenny's water bill? A) $1,500 B) $3,000 C) $1,000 D) $2,000 9. To what is contribution margin equal? A) fixed expenses minus variable expenses B) sales revenues minus variable expenses C) fixed expenses plus variable expenses D) sales revenues minus fixed expenses 10. Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. How many dog treats must Canine Company sell to breakeven? A) 330 B) 471 C) 1,100 D) 194 11. Canine Company produces and sells dog treats for discriminating pet owners. The unit selling price is $10, unit variable costs are $7, and total fixed costs are $3,300. What are breakeven sales? A) $11,000 B) $4,714 C) $3,300 D) $7,700 12. Fido Company produces a single product selling for $30 per unit. Variable costs are $12 per unit and total fixed costs are $4,000. What is the contribution margin ratio? A) 1.67 B) 2.50 C) 0.40 D) 0.60 13. If the sale price per unit is $7, the unit contribution margin is $3, and total fixed expenses are $19,500, what are the breakeven sales in units? A) 2,786 B) 6,500 C) 5.850 D) 4,875 14. If the sale price per unit is $24.50, the variable expense per unit is $17, and total fixed expenses are $324,000, what are the breakeven sales in dollars? A) $734,400 B) $466,946 C) $1,058,400 D) $224,808