Management by exception is a practice whereby managers focus more closely on

________.
5/5

unfavorable variances
activity-based budgeting
variances in the larger departments
areas not operating as anticipated and less closely on areas that are operating as anticipated
 
 
An unfavorable variance indicates that ________.
5/5

the budgeted contribution margin is more than the actual amount

the actual units sold are less than the budgeted units
 
the actual revenues exceed the budgeted revenues
the actual costs are less than the budgeted costs

 
Lincoln Corporation used the following data to evaluate their current operating
system. The company sells items for $19 each and used a budgeted selling price of
$19 per unit. What is the static-budget variance of revenues?
5/5

$171,000 unfavorable
$171,000 favorable
 
$6,000 favorable
$9,000 unfavorable

 
Goodard Inc. planned to use $153 of material per unit but actually used $140 of
material per unit, and planned to make 1,100 units but actually made 940 units.The
flexible-budget amount for materials is ________.
5/5

$168,300
$143,820
 
$154,000
$131,600

 
Harland Corporation currently produces cardboard boxes in an automated process.
Expected production per month is 20,000 units, direct material costs are $2.50 per
unit, and manufacturing overhead costs are $15,000 per month. Manufacturing
overhead is all fixed costs. What are the flexible budget for 14,000 and 20,000
units, respectively?
5/5

$14,000; $65,000
$50,000; $65,000
 
$50,000; $30,000
$14,000; $30,000

 
Better Products Inc. planned to use $40 of material per unit but actually used $30
of material per unit, and planned to make 1,560 units but actually made 1,310
units.The sales-volume variance for materials is ________.
5/5

$10,000 favorable
 
$7,500 unfavorable
$7,500 favorable
$10,000 unfavorable

 
If a sales-volume variance was caused by poor-quality products, then the ________
would be in the best position to explain the variance.
5/5

production manager
 
financial supervisor
sales supervisor
logistic manager

 
An efficiency variance reflects the difference between
5/5

a standard input quantity in a company and its main competitors

an actual input quantity and a budgeted input quantity
 
actual input quantities used last period and current period
an actual input quantity used in a company and its main competitors

 
J.C Coats Inc. carefully develops standards for its coat making operation. Its
specifications call for 2 square yards of wool per coat. The budgeted price of wool
is $44 per square yard. The actual price for the wool was $36 and the usage was
only 1.70 yards of wool per coat. What would be the standard cost per output for
the wool?
5/5

$88.00 per coat

$72.00 per coat
$61.20 per coat
$74.80 per coat
 
 
Standard labor rate is $7.50 per hour. Standard labor allowed per unit is 0.7 hours.
Actual cost per labor hour is $7.00 and actual labour hour per unit is 1 hours. What
is the standard labor cost per output unit?
0/5

$7.50
$5.25
$7.00
 
$4.90

 
Which of the following is referred to as the bottom-up aspect of the budgeting
process?
5/5

lower-level managers providing inputs to the budgeting process based on their specialized
knowledge and familiarity of the operation
 
lower-level managers implementing the budgets with senior managers monitoring progress
and investigating deviations
senior managers consulting middle- and lower-level managers to investigate any deviations
from the budget
lower-level managers setting their individual targets that aggregate to be the company-wide
target
 
Managers who feel that top management does not believe in the budget are most
likely to ________.
5/5

pick up the slack and participate in the budgeting process

be less engaged participants in the budgeting process and less committed to achieving
budgeted targets
 
convert the budget to a shorter more reasonable time period that will help with real time
reportin
to face little interference in the day-to-day aspects of running the business

 
In which order are the following developed? First to last:
5/5

DCAB
ABDC
CABD
DABC
 
 
For next year, Roberts, Inc., has budgeted sales of 20,000 units, targeted ending
finished goods inventory of 1,650 units, and beginning finished goods inventory of
750 units. All other inventories are zero. How many units should be produced next
year?
5/5

19,100 units
20,000 units
20,900 units
 
22,400 units

 
First Class, Inc., expects to sell 22,000 pool cues for $12 each. Direct materials
costs are $3, direct manufacturing labor is $4, and manufacturing overhead is
$0.84 per pool cue. The following inventory levels apply to 2019 (below). On the
2019 budgeted income statement, what amount will be reported for sales?
5/5

$396,000
$264,000
 
$409,200
$277,200

 
First Class, Inc., expects to sell 28,000 pool cues for $14 each. Direct materials
costs are $3, direct manufacturing labor is $5, and manufacturing overhead is
$0.82 per pool cue. The following inventory levels apply to 2019 (below).How many
pool cues need to be produced in 2019?
5/5

26,500 cues
29,500 cues
 
29,300 cues
30,800 cues

 
First Class, Inc., expects to sell 29,000 pool cues for $13 each. Direct materials
costs are $3, direct manufacturing labor is $5, and manufacturing overhead is
$0.83 per pool cue. The following inventory levels apply to 2019 (below).What are
the 2019 budgeted costs for direct materials, direct manufacturing labor, and
manufacturing overhead, respectively?
5/5
$72,000; $120,000; $19,920
$90,600; $151,000; $25,066
$91,800; $153,000; $25,398
 
$87,000; $145,000; $24,070

 
Tiger Pride produces two product lines: T-shirts and Sweatshirts. Product
profitability is analyzed as follows (as picture). What is the projected decline in
operating income if the direct materials costs of T-Shirts increase to $3.50 per unit
and direct labor costs of Sweatshirts increase to $14.00 per unit?
10/10

$514,500
$116,000
$100,500
$216,500
 
 
Nantucket Industries manufactures and sells two models of watches, Prime and
Luxuria. It expects to sell 3,200 units of Prime and 1,300 units of Luxuria in
2019.The following estimates are given for 2019 (below). Nantucket had an
inventory of 230 units of Prime and 85 units of Luxuria at the end of 2018. It has
decided that as a measure to counter stock outages it will maintain ending
inventory of 370 units of Prime and 200 units of Luxuria.Each Luxuria watch
requires one unit of Crimpson and has to be imported at a cost of $11. There were
140 units of Crimpson in stock at the end of 2018.The management does not want
to have any stock of Crimpson at the end of 2019.How many units of Prime
watches must be produced in 2019?
5/5

2,970 units
3,200 units
3,340 units

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KUIS-2 CVP
Total points70/100
Kerjakan sesuai petunjuk
The respondent's email (20212045@students.uii.ac.id) was recorded on submission of this
form.

 
Managers use cost-volume-profit (CVP) analysis to ________.
5/5

forecast the cost of capital for a given period of time

to study the behavior of and relationship among the elements such as total revenues, total
costs, and income
 
estimate the risks associated with a given job
analyse a firm's profitability and help to decide wealth distribution among its stakeholders

 
Which of the following is true of cost-volume-profit analysis?
5/5

The theory states that total variable costs remain the same over a relevant range.
The theory states that total costs remain the same over the relevant range.
The theory assumes that all costs are variable.
Option 5
The theory assumes that units manufactured equal units sold.
 
 
The contribution margin per unit equals .
0/5

selling price - fixed costs per unit

fixed cost - contribution margin ratio
selling price - variable costs per unit
selling price - costs of goods sold
 
Correct answer
selling price - variable costs per unit

 
Pacific Company sells only one product for $12 per unit, variable production costs
are $3 per unit, and selling and administrative costs are $1.70 per unit. Fixed costs
for 11,000 units are $6,000. The operating income is ________ when 11,000 units are
sold.
5/5

$7.30 per unit

$4.70 per uni
$8.45 per unit
$6.75 per unit
 
 
Sky High sells helicopters. During the current year, 130 helicopters were sold
resulting in $840,000 of sales revenue, $260,000 of variable costs, and $350,000 of
fixed costs. The number of helicopters that must be sold to achieve $320,000 of
operating income is ________.
5/5

104 units
130 units
151 units
 
79 units

 
The controller at TellCo is examining her books. She determines that at the
breakeven point of 5,000 units, variable costs total $4,000 and fixed costs total
$7,000. Therefore, 5,001st unit sold will contribute ________ to profits. (Round the
final answer to the nearest cent.)
5/5

$1.40
 
$0.80
$0.60
$2.20

 
Firebird Ltd. sells packaged birdseed for $6.00 per package. Variable product costs
are $3.00 per package. Fixed costs are $12,000 per period. How many packages
must Firebird sell to earn a target operating income of $7,900?
5/5

3,317 packages
6,633 packages
 
2,633 packages
4,000 packages

 
Slickware sells porcelain cups. The breakeven point is 5,000 units. The variable
cost per unit is $12 and the fixed costs are $20,000. What is the selling price?
5/5

$24
$28
$20
$16
 
 
When fixed costs are $70,000 and variable costs are 60% of the selling price, then
breakeven sales are ________. (Round the final answer to the nearest dollar.)
5/5

$175,000
 
$116,667
$98,000
$112,000

 
Ruben is a travel agent. He intends to sell his customers a special round-trip airline
ticket package. He is able to purchase the package from the airline for $160 each.
The round-trip tickets will be sold for $200 each and the airline intends to
reimburse Ruben for any unsold ticket packages. Fixed costs include $5,200 in
advertising costs. How many ticket packages will Ruben need to sell to break even?
5/5

130 packages
 
40 packages
160 packages
26 packages

 
Ruben is a travel agent. He intends to sell his customers a special round-trip airline
ticket package. He is able to purchase the package from the airline for $140 each.
The round-trip tickets will be sold for $230 each and the airline intends to
reimburse Ruben for any unsold ticket packages. Fixed costs include $5,500 in
advertising costs. How many ticket packages will Ruben need to sell in order to
achieve $60,000 of operating income?
5/5

728 packages
 
62 packages
667 packages
285 packages

 
Ruben intends to sell his customers a special round-trip airline ticket package. He
is able to purchase the package from the airline carrier for $170 each. The round-
trip tickets will be sold for $200 each and the airline intends to reimburse Ruben for
any unsold ticket packages. Fixed costs include $5,140 in advertising costs. For
every $27,000 of ticket packages sold, operating income will increase by ________.
5/5

$27,000
$22,950
$34,000
$4,050
 
 
Frazer Corp sells several products. Information of average revenue and costs is as
follows (picture). If the company decides to lower its selling price by 14.25%, but
continues to sell 16,000 units, the operating income is reduced by ________.
5/5

$135,000
$13,200
$64,960
 
$16,000

 
Assume only the specified parameters change in a cost-volume-profit analysis. If
the contribution margin increases by $6 per unit, then ________.
0/5

operating income decreases by $6 per unit

 
fixed costs decreases by $6 per unit
fixed costs increases by $6 per unit
operating income increases by $6 per unit

Correct answer
operating income increases by $6 per unit

 
If a company is planning to reduce the selling price, they must believe that ________.
5/5

the fixed costs will cover the lower sales price

more units will be sold
 
increased collections will increase income
variable costs will decline as well
 
Blistre Company operates on a contribution margin of 30% and currently has fixed
costs of $550,000. Next year, sales are projected to be $3,100,000. An advertising
campaign is being evaluated that costs an additional $120,000. How much would
sales have to increase to justify the additional expenditure?
0/5

$400,000
$280,000
$930,000
$550,000
 
Correct answer
$400,000

 
If contribution margin decreases by $1 per unit, then operating profits will increase
by $1 per unit.
0/5

TRUE
 
FALSE

Correct answer
FALSE

 
The margin of safety is the difference between ________.
0/5

budgeted expenses and breakeven expenses

actual sales margin and budgeted sales margin
actual operating income and budgeted operating income
 
budgeted revenues and breakeven revenues

Correct answer
budgeted revenues and breakeven revenues

 
Sensitivity analysis is ________
5/5

a way of seeing how far from budget actual results are

a way of determining how customers will react to new products
a way of determining what will happen if assumptions change
 
a way of seeing how employees will be affected by changes

 
Kanga Company is considering two different production plans.Option one: Fixed
costs of $10,000 and a breakeven point of 500 units.Option two: Fixed costs of
$20,000 and a breakeven point of 700 units.Which option should Kanga choose if it
is expecting to produce 600 units?
0/5

Both options are equally good.

Option one.
It isn't possible to determine from the information given.
 
Option two.

Correct answer
Option one.

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