CVP Statement and absorption/var costing

Multiple Select

Which of these costs get added together to find the variable product costs? Choose all the answers that are correct.

• Direct materials

• Variable MOH

• Fixed MOH

• Variable S & A

Multiple Choice

If fixed costs are $10,000 are the Contribution Margin ratio is 40%, what is the breakeven Sales $?

• 25,000 units

• $25,000

• 16,667 units

• $16,667

Multiple Choice

Which one of these formulas gives us breakeven sales units?

• (Fixed costs + variable costs)/ CM$

• Fixed costs/ CM Ratio

• (Fixed costs + variable costs) / CM Ratio

• Fixed costs / CM$/ unit

Multiple Choice

Sales - Variable Costs

• Absorption costs

• Variable cost analysis

• Contribution margin

• Fixed costs

Multiple Choice

Direct materials is which type of cost?

• Fixed and product

• Variable and product

• Fixed and period

• Variable and period

Multiple Choice

If more units are produced than sold in a period, which costing method will have a higher net operating income?

• Variable costing

• Absorption or full costing

Multiple Select

Which of the following are period costs (under full costing)?

• Supplies for the factory breakroom

• Supplies for the sales office

• CEO salary

• Advertising

Multiple Choice

If sales price per unit is $100 and variable costs are $70 per unit, the Contribution Margin percentage is:

• $70

• $30

• 70%

• 30%

Multiple Choice

The formula to reconcile the NOI from full costing to variable costing is:

• Difference in units sold and produced * FMOH/unit

• Difference in units sold and produced * variable costs/ unit

• FMOH/ unit

• Variable cost/unit

Multiple Select

Which of the following costs attach to the product under full costing?

• DM

• DL

• FMOH

• Period costs

Multiple Select

Which of the following costs attach to the product under variable costing?

• DM

• DL

• VMOH

• FMOH

Multiple Choice

Which of the following costs get expensed as period costs under variable costing?

• DM

• DL

• VMOH

• FMOH

Multiple Choice

Which income statement do we generally use with full costing?

• CVP Income Stmt

• Traditional income statement

• G/L Income Statement

• Balance Sheet

Multiple Choice

If you see a statement that includes: Sales - COGS = Gross Profit, what type of statement are you looking at?

• Cash Flow Statement

• Traditional Income Statement

• CVP Income Statement

• Balance Sheet

Multiple Choice

If a company has common fixed costs, which will be higher? The breakeven sales amount for the company as a whole or the sum of the breakeven sales amounts for the segments?

• The B/E Sales for the company as a whole

• The sum of the B/E Sales for each segment.

• They are both the same.

• I have no idea.

Multiple Choice

POHR = ?

• Actual overhead for the job/ number of units in the job

• Estimated overhead/ number of units in the job

• Estimated overhead/ estimated activity level

• Estimated activity level * per unit cost