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Quick Sales Company pays its sales staff a base salary of $4,500 a month. In addition, each salesperson is paid $5.00

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These are MC questions, since they are long so I removed all the choices out.

1. Quick Sales Company pays its sales staff a base salary of $4,500 a month. In addition, each salesperson is paid $5.00 for each product sold. Each salesperson's salary is an example of which of the following cost behaviors? (Points : 2)

2. Select the correct statement regarding fixed costs. (Points : 2)
There is a contradiction between the term "fixed cost per unit" and the behavior pattern implied by the term.
Fixed cost per unit is not fixed.
Total fixed cost remains constant when volume changes.
All of the above are correct statements.

3. Hico Bottling Company pays its production manager a salary of $5,000 per month. Salespersons are paid strictly on commission, at $2 for each case of product sold.

For Hico Bottling Company, the salespersons’ commissions are an example of: (Points : 2)

4. Select the correct statement regarding fixed costs. (Points : 2)

They do not change, because fixed costs should be ignored in decision making.
The fixed cost per unit increases when volume increases.
The fixed cost per unit decreases when volume increases.
The fixed cost per unit does not change when volume decreases.

5. The magnitude of operating leverage for Perkins Corporation is 3.4 when sales are $100,000. If sales increase to $110,000, profits would be expected to increase by what percent? (Points : 2)

6. Pattillo Industries makes a product that sells for $25 a unit. The product has a $5 per unit variable cost and total fixed costs of $9,000. At budgeted sales of 1,000 units, the margin of safety percentage is:

7. Which of the following equations can be used to compute a firm's magnitude of operating leverage?

8. Hard Nails and Bright Nails are competing nail salons. Both companies have the same number of customers. Both charge the same price for a manicure. The only difference is that Hard Nails pays its manicurists on a salary basis (i.e., a fixed cost structure) while Bright Nails pays its manicurists on the basis of the number of customers they serve (i.e., a variable cost structure). Both companies currently make the same amount of net income. If sales of both salons increase by an equal amount, Hard Nails:

9. Barker Company's break-even point is 10,000 units. Its product sells for $25 and has a $10 variable cost per unit. What is the company's total fixed cost amount? (Points : 2)

10. For the last two years, Barton Company had net income as follows:

2009
2010
Net income
$80,000
$100,000


11. Wall Company incurred $30,000 of fixed cost and $40,000 of variable cost when 1,000 units of product were made and sold. If the company’s volume doubles, the cost per unit will: (Points : 2)

12. Which of the following costs is most likely to be directly traceable to a specific department in a retail clothing store? (Points : 2)

13. A chair manufacturer makes custom chairs using hand tools, wood, glue, and varnish. Which of the following statements is true? (Points : 2)

14. Halt Company employs material handling employees who move materials between production divisions at a labor cost of $160,000 a year. It is estimated that these employees move 800,000 pounds of material per year. If 60,000 pounds are moved in March, how much of the material handling cost should be assigned to products made in March? (Points : 2)

15. Which of the following statements is true regarding the salary of the manager of a fast food hamburger restaurant? (Points : 2)

16. Overhead costs include: (Points : 2)
direct and indirect costs.
direct costs only.
indirect costs only.
neither direct nor indirect costs.

17. Cost objects may be: (Points : 2)
products.
processes.
departments.
all of the above.

18. Some costs that possibly could be traced directly to cost objects are nonetheless classified as indirect costs because: (Points : 2)

19. Overhead costs: (Points : 2)
can be traced to cost objects in a cost-effective manner.
cannot be traced to cost objects cost effectively but can be allocated to cost objects.
primarily are variable costs.
are not incurred by most companies.

20. Which of the following statements is true? (Points : 2)

Direct costs can easily be traced to a cost object; indirect costs cannot be.
Both direct and indirect costs can easily be traced to a cost object.
Neither direct nor indirect costs are easily traced to a cost object.
Indirect costs can be traced easily to a cost object, but direct costs cannot be.

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