Extron, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were produced, fixed manufacturing costs amounted to $200,000 and the cost per unit manufactured totaled $5. On the basis of this information, how much cost would the firm anticipate at an activity level of 97,000 units?

Extron, Inc., has only variable costs and fixed costs. A review of the company's records disclosed that when 100,000 units were produced, fixed manufacturing...

Douglas Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000. How much cost would the company anticipate if during the next period it produced and sold 102,000 units?

Douglas Corporation recently produced and sold 100,000 units. Fixed costs at this level of activity amounted to $50,000; variable costs were $100,000....

Straight-line depreciation is a typical example of a:

Straight-line depreciation is a typical example of a:  A. variable cost. B. step-variable cost. C. fixed cost. D. mixed cost. E. curvilinear...

Costs that remain the same over a wide range of activity, but jump to a different amount outside that range, are termed:

Costs that remain the same over a wide range of activity, but jump to a different amount outside that range, are termed:  A. step-fixed costs. B....

When graphed, a typical fixed cost appears as:

When graphed, a typical fixed cost appears as:  A. a horizontal line. B. a vertical line. C. a u-shaped line. D. a diagonal line that slopes...

Norman Company pays a sales commission of 5% on each unit sold. If a graph is prepared, with the vertical axis representing per-unit cost and the horizontal axis representing units sold, how would a line that depicts sales commissions be drawn?

Norman Company pays a sales commission of 5% on each unit sold. If a graph is prepared, with the vertical axis representing per-unit cost and the horizontal...

When graphed, a typical variable cost appears as:

When graphed, a typical variable cost appears as:  A. a horizontal line. B. a vertical line. C. a u-shaped line. D. a diagonal line that slopes...

Webster has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, $150,000; fixed overhead, $240,000. If Webster now revises its anticipated production slightly downward, it would expect:

Webster has the following budgeted costs at its anticipated production level (expressed in hours): variable overhead, $150,000; fixed overhead, $240,000....

A company observed a decrease in the cost per unit. All other things being equal, which of the following is probably true?

A company observed a decrease in the cost per unit. All other things being equal, which of the following is probably true?  A. The company is...

Plaza Corporation observed that when 25,000 units were sold, a particular cost amounted to $70,000, or $2.80 per unit. When volume increased by 15%, the cost totaled $80,500 (i.e., $2.80 per unit). The cost that Plaza is studying can best be described as a:

Plaza Corporation observed that when 25,000 units were sold, a particular cost amounted to $70,000, or $2.80 per unit. When volume increased by 15%,...

Which of the following costs changes in direct proportion to a change in the activity level?

Which of the following costs changes in direct proportion to a change in the activity level?  A. Variable cost. B. Fixed cost. C. Semivariable...

The relationship between cost and activity is termed:

The relationship between cost and activity is termed:  A. cost estimation. B. cost prediction. C. cost behavior. D. cost analysis. E. cost approximation. Answer: C....

A company has a 20% contribution margin ratio and a degree of operating leverage of 4. Its fixed costs are $15,000. Assume that sales go up by $30,000 or 30%. Then, the company's profit will go up by:

A company has a 20% contribution margin ratio and a degree of operating leverage of 4. Its fixed costs are $15,000. Assume that sales go up by $30,000...

For which of the following, "the higher, the better" is always true?

For which of the following, "the higher, the better" is always true? A. break even point B. margin of safety C. operating leverage D. variable cost...

Assume that two companies have the same amounts of sales and profit. Which company has the higher operating leverage?

Assume that two companies have the same amounts of sales and profit. Which company has the higher operating leverage? A. the company that has the...

Which of the following is not true of operating leverage?

Which of the following is not true of operating leverage? A. operating leverage is determined independent of cost structure B. generally speaking,...

Which of the following causes an increase in the break-even point?

Which of the following causes an increase in the break-even point? A. increase in fixed expenses B. increase in selling price C. decrease in unit...

When sales go up by 25%:

When sales go up by 25%: A. variable expenses go up by 25% B. contribution margin will go up by 75% C. net income will go up by 25% D. fixed expenses...

What type of cost exhibits the behavior that follows?

What type of cost exhibits the behavior that follows? Manufacturing volume (units) Cost per unit 10,000 $100,000 20,000 $160,000 A. variable cost B....

In the cost graph, the slope represents:

In the cost graph, the slope represents: A. total fixed cost B. total variable cost C. per-unit fixed cost D. per-unit variable cost Answer:&n...

A company has many machines. The company needs one maintenance worker for every 10 machines. Each maintenance worker is paid a flat salary of $3,000. With respect to the number of machines, the maintenance cost is a:

A company has many machines. The company needs one maintenance worker for every 10 machines. Each maintenance worker is paid a flat salary of $3,000....

Jones has a contribution margin ratio of 30%. This means that:

Jones has a contribution margin ratio of 30%. This means that: A. contribution margin must be 30% of income B. fixed costs must be 70% of sales C....

At the break even point which of the following is not true?

At the break even point which of the following is not true? A. sales equal variable expenses plus fixed expenses B. variable expenses equal fixed...

Maxim Company incurred $70,000 ($30,000 of total fixed cost and $40,000 of total variable cost) when 1,000 units of a given product were produced. If 2,000 units are made, the company's total cost will be:

Maxim Company incurred $70,000 ($30,000 of total fixed cost and $40,000 of total variable cost) when 1,000 units of a given product were produced. If...

What type of cost exhibits the behavior that follows?

What type of cost exhibits the behavior that follows? Manufacturing volume (units) Cost per unit 50,000 $2 70,000 $2 A. variable cost B. fixed cost C....

The functional form of a cost is given as: Y = a + bX. In this equation, "b" represents:

The functional form of a cost is given as: Y = a + bX. In this equation, "b" represents: A. fixed cost in total B. fixed cost per unit C. variable...

Webster has the following budgeted costs as its anticipated production level (expressed in hours): variable cost $150,000; fixed cost $240,000. If webster now revises its anticipated production upward, it would expect:

Webster has the following budgeted costs as its anticipated production level (expressed in hours): variable cost $150,000; fixed cost $240,000. If webster...

Richard Hamilton has a fast food franchise and pays a franchise fee. The fee is $35,000 plus 3% of gross sales. With respect to sales, the fee is a:

Richard Hamilton has a fast food franchise and pays a franchise fee. The fee is $35,000 plus 3% of gross sales. With respect to sales, the fee is a: A....

Monaco Company has a variable cost. At the production level of 100 units, the amount of the cost is $200. If the production level increases to 120 units:

Monaco Company has a variable cost. At the production level of 100 units, the amount of the cost is $200. If the production level increases to 120 units: A....

A department had 100 units of beginning work-in-process, which are 100% as to direct materials and 30% complete as to conversion. The department started 700 units during a given period. The department completed and transferred out 500 units. At the end of the period, there are 300 units remaining unfinished with 100% complete as to direct materials and 60% complete as to conversion. The equivalent units as to conversion are:

A department had 100 units of beginning work-in-process, which are 100% as to direct materials and 30% complete as to conversion. The department started...

Gorski began operations on January 1 of the current year. The company uses a process-costing system, and conversion cost is incurred evenly throughout manufacturing. By January 31, the firm had completed 56,000 units. Which of the following statements could be true about the ending work-in-process inventory if equivalent units for the conversion costs totaled 59,000 units?

Gorski began operations on January 1 of the current year. The company uses a process-costing system, and conversion cost is incurred evenly throughout...

Equivalent units are:

Equivalent units are: A. the number of units that should be produced, if the department operates at a maximum efficiency level B. the number of units...

Which of the following is true of process costing?

Which of the following is true of process costing? A. a separate finishes goods account is set up for each process or department B. for the costing...

Process costing is used when:

Process costing is used when: A. there is a single product that has to go through different processes B. there are several distinct products to manufacture...

Which of the following is not disclosed regarding earnings per share?

Which of the following is not disclosed regarding earnings per share? A) Basic EPS for income from continuing operations. B) Diluted EPS for net...

Executive stock options are outstanding all year that permit executives to buy 12 million common shares at $60. The average market price of the common stock was $50. When calculating diluted earnings per share, the assumed exercise of these options will increase the weighted average number of shares outstanding by:

Executive stock options are outstanding all year that permit executives to buy 12 million common shares at $60. The average market price of the common...

Executive stock options are outstanding all year that permit executives to buy 12 million common shares at $50. The average market price of the common stock was $60. When calculating diluted earnings per share, the assumed exercise of these options will increase the weighted average number of shares outstanding by:

Executive stock options are outstanding all year that permit executives to buy 12 million common shares at $50. The average market price of the common...

When calculating earnings per share, the effect of after-tax interest expense paid on convertible bonds that are dilutive is to:

When calculating earnings per share, the effect of after-tax interest expense paid on convertible bonds that are dilutive is to: A) Increase net...

At December 31, 2016, the balance sheet of Darwin Corporation included 8 million common shares and 4 million nonconvertible preferred shares. On July 1, 2017, Darwin issued a 5 for 4 stock split on its common shares and paid $10 million cash dividends on the preferred stock. Net income for the year ended December 31, 2017, was $40 million. Darwin's 2017 EPS should be:

At December 31, 2016, the balance sheet of Darwin Corporation included 8 million common shares and 4 million nonconvertible preferred shares. On July...

At December 31, 2016, the balance sheet of Goode Corporation included 80 million common shares. On October 1, 2017, Goode retired 4 million shares as part of a share repurchase program. Net income for the year ended December 31, 2017, was $400 million. Goode's 2017 EPS should be:

At December 31, 2016, the balance sheet of Goode Corporation included 80 million common shares. On October 1, 2017, Goode retired 4 million shares as...

At December 31, 2016 and 2017, First Company had outstanding 50 million common shares and 4 million shares of 10%, $10 par cumulative preferred stock. Net income for 2017 was $20 million. No dividends were declared in 2016 or 2017. EPS for 2017 was:

At December 31, 2016 and 2017, First Company had outstanding 50 million common shares and 4 million shares of 10%, $10 par cumulative preferred stock....

What amount should Olympic recognize as compensation expense for 2016?

On January 1, 2016, Olympic Insurance Company granted 30,000 stock options to certain executives. The options are exercisable no sooner than December...

Under IFRS, a deferred tax asset for stock options

Under IFRS, a deferred tax asset for stock options A) is created for the cumulative amount of the fair value of the options the company has recorded...

Which of the following statements is true regarding diluted earnings per share?

Which of the following statements is true regarding diluted earnings per share? A) It is assumed that stock options are exercised at the beginning...

Convertible bonds that are dilutive generally affect the calculation of:

Convertible bonds that are dilutive generally affect the calculation of: A) a B) b C) c D) d Answer: ...

Common stock options that are antidilutive generally affect the calculation of:

Common stock options that are antidilutive generally affect the calculation of: A) a B) b C) c D) d Answer: ...

When calculating diluted EPS, which of the following, if dilutive, would cause the weighted average number of shares to increase?

When calculating diluted EPS, which of the following, if dilutive, would cause the weighted average number of shares to increase? A) a B) b C) c D)...

To incorporate the effect of outstanding stock options in the calculation of diluted EPS:

To incorporate the effect of outstanding stock options in the calculation of diluted EPS: A) Would be inappropriate because options are considered...

A business is deemed to have a complex capital structure when it has outstanding:

A business is deemed to have a complex capital structure when it has outstanding: A) Three types of securities or more besides common stock. B) Executive...

When calculating the weighted average number of shares outstanding, the number of shares are not time-weighted by the fraction of the reporting period they are (are not) outstanding for:

When calculating the weighted average number of shares outstanding, the number of shares are not time-weighted by the fraction of the reporting period...

When calculating basic earnings per share, net income is reduced by dividends on nonconvertible cumulative preferred stock:

When calculating basic earnings per share, net income is reduced by dividends on nonconvertible cumulative preferred stock: A) Whether declared or...

Which of the following statements is untrue regarding earnings per share?

Which of the following statements is untrue regarding earnings per share? A.) A company has a simple capital structure if it has no outstanding securities...