MAS

The following information pertains to Bronze Co. for the year ended December 31, 2021: Sales: P 600,000 Income: P 100,000 Capital investment: P 400,000 Which of the following equations should be used to complete Bronze’s return on investment?

• (4/6) x (6/1) = ROI

• (6/4) x (1/6) = ROI

• (4/6) x (1/6) = ROI

• (6/4) x (6/1) = ROI

Which of the following best describes a fixed cost?

• It is constant per unit of changes in production.

• It may change in total when such change is related to changes in production.

• It may change in total when such change is unrelated to changes in production.

• It may change in total when such change depends upon production or within the relevant range.

Dawn Company estimated its materials handling cost at two activity levels as follows:

Kilos Handled 80,000 160,000

Cost 60,000 132,000

What is Dawn’s estimated cost for handling 75,000 kilos

• Php 150,000

• Php 153,000

• Php 157,500

• Php 165,000

In March, Zenica had electrical costs of P 225.00 when the total volume was 4,500 cups of coffee served. In April, electrical costs were P 227.50 for 4,750 cups of coffee. Using the high-low method, what is the estimated fixed cost of electricity per year?

• P180

• P 200

• P225

• P 2,160

One of the elements included in the economic order quantity (EOQ) formula is

• Safety stock

• Yearly demand

• Selling price of the item

• Lead time for the delivery

Simple regression analysis involves

• One dependent variable and one independent variable

• One dependent variable and many independent variables

• Many dependent variables and one independent variable

• Many dependent variables and many independent variables

Which method of inventory costing treats direct manufacturing costs and manufacturing overhead costs, both variable and fixed, as inventoriable costs?

• Conversion costing

• Absorption costing

• Variable costing

• Direct costing

What is the costing method that treats all fixed costs as period costs?

• Absorption costing

• Job-order costing

• Variable costing

• Process costing

Which of the following statements is true?

• The higher is the production within the relevant range, the higher is the variable cost per unit

• The higher is the production within the relevant range, the higher is the fixed cost per unit

• The lower is the production within the relevant range, the lower is the total fixed cost 

• The lower is the production within the relevant range, the lower is the total variable cost

Within the relevant range, the amount of variable cost per unit

• Differs at each production level

•  Increases as production increases

•  Decreases as production increases

•  Remains constant at each production level