.The Blue Company is currently selling its single product for $15. Variable costs are estimated to...

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.The Blue Company is currently selling its single product for $15. Variable costs are estimated to remain at 70% of the current selling  price and fixed costs are estimated to be $4,800 per month. If Blue increases its selling price by 10%, its variable cost ratio will (Points : 1)     not  changedecreaseincrease																																				2.								Which field of accounting emphasizes relevancy over comparability? (Points : 1)																										cost accounting.				financial accounting.				responsibility accounting.				international accounting.																																										3.								Which of the following best distinguishes an opportunity cost from an outlay cost? (Points : 1)																										Opportunity costs are recorded, whereas outlay costs are not.				Outlay costs are speculative in nature, whereas opportunity costs are easily traceable to products.				Opportunity costs have very little utility in practical applications, whereas outlay costs are always  relevant.				Opportunity costs are sacrifices from foregone alternative uses of resources, whereas outlay costs are cash  outflows.																																										4.								At a break-even point of 400 units, variable costs were $400 and fixed costs were $200. What will the  401st								unit sold contribute to operating profits before income taxes? (Points : 1)																										$ .50				$1.00				$1.50				$2.00				some other answer _______________.																																										5.								Given the following data:																																																																																Per Unit																																		Total																																																						Sales																																		$15																																		$45,000																																																						Less variable expenses																																		9																																		27,000																																																						Contribution margin																																		6																																		18,000																																																						Less fixed expenses																																																								12,000																																																						Net income																																																								$ 6,000																																																						If sales decrease by 500 units, by what % would fixed expenses have to be reduced by to maintain current net income? (Points :  1)																										50.0%.				33.3%.				25.0%.				16.7%.				Some other percentage ____________.																																										6.								The Cost of Goods Manufactured Statement summarizes the periodic production operations for a company. On  the face of that schedule are intermediate calculations supporting the cost of goods manufactured figure. The beginning  Work-in-Process inventory plus the total of the manufacturing costs equals (Points : 1)																										total finished goods during the period.				cost of goods sold for the period.				total work-in-process during the period.				cost of goods manufactured for the period.																																										7.								A company which manufactures custom-made machinery routinely incurs sizable telephone costs in the process  of taking sales orders from customers. Which of the following is a proper classification of this cost? (Points : 1)																										Product cost				Period cost				Conversion cost				Prime cost																																														8.								Which of the following would not cause the breakeven point to change? (Points : 1)																										Sales price increases.				Fixed costs decreases.				Sales volume decreases.				Variable costs per unit increases.				Product mix shifts towards the cheaper products.																																										9.								A manufacturing company incurs direct labor costs as it transforms direct material into marketable  products. The cost of the direct labor will be treated as a period cost on the income statement when the resulting: (Points :  1)																										payroll costs are paid.				payroll costs are incurred.				products are completed.				products are sold.																																										10.								Which of the following activities would not be considered a value-added activity? (Points : 1)																										production				marketing				accounting				distribution				administration

Robert · Accepted Answer

1.The Blue Company is currently selling its single product for $15. Variable costs are 
estimated to remain at 70% of the current selling price and fixed costs are estimated to be 
$4,800 per month. If Blue increases its selling price by 10%, its variable cost ratio will 
(Points : 1) not change 
decrease 
increase 
ANSWER: increase
2. Which field of accounting emphasizes relevancy over comparability? (Points : 1) 
cost accounting. 
financial accounting. 
responsibility accounting. 
international accounting. 
ANSWER: cost accounting
3. Which of the following best distinguishes an opportunity cost from an outlay cost? (Points 
: 1) 
Opportunity costs are recorded, whereas outlay costs are not. 
Outlay costs are speculative in nature, whereas opportunity costs are easily traceable to 
products. 
Opportunity costs have very little utility in practical applications, whereas outlay costs are 
always relevant. 
Opportunity costs are sacrifices from foregone alternative uses of resources, whereas outlay 
costs are cash outflows. 
ANSWER:

. The Blue Company is currently selling its single product for $15. Variable costs are estimated to remain at 70% of the current selling price and fixed costs are estimated to be $4,800 per month. If...

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