# ACCT Exam Question

1. Quick ratio is __the sum of account receivables, cash over current liabilites__

2. For a manufacturing company has total monthly fixed costs $100,000, variable costs per unit $10, selling price per unit $15., income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, **break-even point in units** is:__$20,000__

3. Contribution margin is the same as gross margin for generally accepted accounting principles GAAP. __This is not correct__

4. The contribution margin of a company during a specific month is total sales less __total variable__ __costs__

5. For a manufacturing company has total monthly fixed costs of $100,000, variable costs per unit $10, selling price per unit $15., income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if **sales in units (quantities)** increase, **variable cost** per unit ** remain the same **6%** Giving the following data for XY Company

Year 2008 2009

Total sales $145,000 $121,400

Cost of goods sold $880,000 $738,400

Selling & administrative expenses $92,500 $80,700

Assume high low method is adequate in this case, the **variable costs of cost of goods sold** per unit is __60%__

- Current ratio is
__current assets divided by current liabilities.__ - For a manufacturing company has total monthly fixed costs of $100,000, variable costs per unit $10, income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if sales in units (quantities) increase,
**total variable**costs in dollarsGiving the following data for XY Company +__will increase by amt of variable cost__

Year 2008 2009

Total sales $145,000 $121,400

Cost of goods sold $880,000 $738,400

Selling & administrative expenses $92,500 $80,700

Assume high low method is adequate in this case, the **total fixed costs** of selling and administrative expenses is __$20,000__

- For ABC Company, you have given the following costs for the last year. Fixed costs = $40,000 Variable costs = 60% of total costs, find total costs.
__$100,000__ - For a manufacturing company has total monthly fixed costs of $100,000, variable costs per unit $10, selling price per unit $15., income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, the
**quantities need to reach net income is**__$12,500__ - You are to decide between product A and B. The following data pertains to these products: Selling price $12 $10 ****
__PRODUCT A__ - For a manufacturing company has total monthly fixed costs of $100,000, variable costs per unit $10, selling price per unit $15., income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, the
**total sales needed to**reach net income is__$337,500__ - For ABC Company, you are given: Last year net income = $80,000, income tax rate was 20%, find income before tax..
__$100,000__ - Measurements of non-avoidable fixed costs are related to
__a non-discretionary issues__ - The gross margin of a company during a specific month is total sales less
__total cost of goods__ - For a manufacturing company has total monthly fixed costs of $100,000, variable costs per unit $10, selling price per unit $15., income tax rate of 20%, targeted net income of $10,000. Assume all other variables do not affect the cost volume profit relationship, if sales
**in units (quantities)****increase, total costs, in dollars**__remains constant__ - The following data pertains to Kandy Company

Monthly fixed cost (FC) $200,000

Selling price(SP/u) $12

Variable cost per unit(VC/u) $4

Income tax rate (t) 20%

Find contribution margin percentage __33.33%__

- The following data pertains to Kandy Company

Monthly fixed cost (FC) $200,000

Selling price(SP/u) $12

Variable cost per unit(VC/u) $4

Income tax rate (t) 20%

Find contribution margin per unit __$8__

- For a manufacturing company has a total monthly costs of $100,000, variable costs per unit $10, selling price per unit of $15, income tax rate of 20%, targeted net income of $10,000.

Assume all other variables do not affect the cost volume profit relationship, if sales in units

(quantities) increase, **total fixed cost in dollars**: __remains constant__

- For a manufacturing company has a total monthly costs of $100,000, variable costs per unit $10, selling price per unit of $15, income tax rate of 20%, targeted net income of $10,000.

Assume all other variables do not affect the cost volume profit relationship, if sales in units

(quantities) increase, **fixed costs per unit**: __decrease__

- The following data pertains to Kandy Company

Monthly fixed cost (FC) $200,000

Selling price(SP/u) $12

Variable cost per unit(VC/u) $4

Income tax rate (t) 20%

Find contribution break even point __25,000__

- Giving the following data for XY Company +

Year 2008 2009

Total sales $145,000 $121,400

Cost of goods sold $880,000 $738,400

Selling & administrative expenses $92,500 $80,700

Assume high low method is adequate in this case, the **variable costs** of selling and administrative expenses is __2.5%__

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