Font size
WorksheetsFIA CVP
Total questions: 15
Worksheet time: 8mins
Variable costs are costs that remain the same per unit at every level of activity.
True
False
If volume increases, all costs will increase
True
False
Two costs at Jaya Go Enterprise. appear below for specific months of operation.
Month Amount Units Produced
Delivery costs January RM40,000 40,000
February RM55,000 60,000
Utilities January RM84,000 40,000
February RM126,000 60,000
Which type of costs are these?
Delivery costs and utilities are both variable.
Delivery costs and utilities are both mixed.
Utilities are mixed and delivery costs are variable.
Delivery costs are mixed and utilities are variable.
If a sales person incurs RM2,000 of expenses in servicing two customers and RM4,000 of expenses in servicing four customers, the fixed costs are RM1,000
True
False
A mixed cost contains both selling and administrative cost elements.
True
False
If revenue is RM80 and variable cost is RM40% of revenue, then contribution margin = RM48
True
False
The contribution margin is the amount of revenue remaining after deducting fixed costs.
True
False
Mixed costs may be separated into fixed costs and variable costs by using
the variable costing method
the high-low method
the contribution margin method
the traditional method
Which of the following is not a fixed cost?
Direct materials
Depreciation
Lease charge
Property taxes
The increased use of automation and less use of the work force in companies has caused a trend towards an increase in
both variable and fixed costs.
fixed costs and a decrease in variable costs.
variable costs and a decrease in fixed costs.
variable costs and no change in fixed costs.
Which of the following is not a mixed costs?
Car rental fee
Electricity
Depreciation
Telephone Expenses
Nease Company accumulates the following data concerning a mixed cost, using miles as the activity level.
Miles Driven Total Cost
January 10,000 RM15,000
February 8,000 RM14,500
March 9,000 RM12,500
April 7,500 RM13,000
Compute the fixed cost elements using the high-low method.
(a)
A variable cost is a cost that
varies per unit at every level of activity.
occurs at various times during the year.
varies in total in proportion to changes in the level of activity.
may or may not be incurred, depending on management's discretion.
Givenchy Company sells 100,000 wrenches for RM12.00 per unit. Fixed costs are RM350,000 and net income is RM250,000. What should be reported as variable expenses in the CVP income statement?
RM540,000
RM600,000
RM950,000
RM850,000
The following information is available for Matau Bhd:
Sales RM600,000
Cost of goods sold RM390,000
Total fixed expenses RM150,000
Total variable expenses RM360,000
A CVP income statement would report
gross profit of RM210,000
contribution margin of RM450,000
gross profit of RM240,000.
contribution margin of RM240,000.
