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AA025 TOPIC 6 COST VOLUME PROFIT

Authored by NORASNIZAH Moe

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AA025 TOPIC 6 COST VOLUME PROFIT
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11 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following best describes the purpose of Cost-Volume-Profit (CVP) analysis?

To determine the exact manufacturing cost of each product

To examine how changes in costs and sales volume affect a company’s profit

To record daily business transactions in the accounting system

To calculate the depreciation of fixed assets

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Which of the following is an assumption of Cost-Volume-Profit (CVP) analysis?

Selling price per unit changes as sales volume increases

Variable cost per unit remains constant within the relevant range

Total fixed cost increases when production volume increases

Units produced are always greater than units sold

3.

FILL IN THE BLANK QUESTION

2 mins • 1 pt

Crystal Sdn. Bhd (CSB) is producing a product named Biorita. The following are CSB budget information for 2009.

Sales price per unit RM50

Variable cost per unit:

    Direct material RM13, Direct labour RM9, Manufacturing overhead RM5, Sales expense RM3

Fixed production cost RM130,000

Fixed sales cost RM90,000

Forecasted sales for 2009 is RM1,500,000

REQUIRED : Calculate break-even point in unit

4.

FILL IN THE BLANK QUESTION

2 mins • 1 pt

Crystal Sdn. Bhd (CSB) is producing a product named Biorita. The following are CSB budget information for 2009.

Sales price per unit RM50

Variable cost per unit:

    Direct material RM13, Direct labour RM9, Manufacturing overhead RM5, Sales expense RM3

Fixed production cost RM130,000

Fixed sales cost RM90,000

Forecasted sales for 2009 is RM1,500,000

REQUIRED : Calculate break-even point in RM

5.

FILL IN THE BLANK QUESTION

2 mins • 1 pt

Crystal Sdn. Bhd (CSB) is producing a product named Biorita. The following are CSB budget information for 2009.

Sales price per unit RM50

Variable cost per unit:

    Direct material RM13, Direct labour RM9, Manufacturing overhead RM5, Sales expense RM3

Fixed production cost RM130,000

Fixed sales cost RM90,000

Forecasted sales for 2009 is RM1,500,000

REQUIRED : Calculate margin of safety in unit

6.

FILL IN THE BLANK QUESTION

2 mins • 1 pt

Crystal Sdn. Bhd (CSB) is producing a product named Biorita. The following are CSB budget information for 2009.

Sales price per unit RM50

Variable cost per unit:

    Direct material RM13, Direct labour RM9, Manufacturing overhead RM5, Sales expense RM3

Fixed production cost RM130,000

Fixed sales cost RM90,000

Forecasted sales for 2009 is RM1,500,000

REQUIRED : Calculate margin of safety in RM

7.

FILL IN THE BLANK QUESTION

2 mins • 1 pt

Crystal Sdn. Bhd (CSB) is producing a product named Biorita. The following are CSB budget information for 2009.

Sales price per unit RM50

Variable cost per unit:

    Direct material RM13, Direct labour RM9, Manufacturing overhead RM5, Sales expense RM3

Fixed production cost RM130,000

Fixed sales cost RM90,000

Forecasted sales for 2009 is RM1,500,000

REQUIRED : If CSB want to get profit for RM500,000, calculate the targeted sales unit

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