Reference no: EM131133968
PROJECT MANAGEMENT ACCOUNTING
1- Which of the following will increase a company's break-even point ?
(a) Increasing the contribution margin per unit.
(b) Increasing the variable cost per unit.
(c ) Reducing the company's total fixed costs.
(d) Increasing the selling price per unit.
2- The fixed costs per units are $4 when a company makes 8000 units. What are the per unit fixed costs when 10,000 units are produced ?
(a) $4.00
(b) $3.00
(c ) $10.00
(d) $8.00
3- The variable costs per units are $6 when a company makes 8000 units. What are the per unit variable costs when 12000 units are produced?
(a) $9.00
(b) $8.00
(c ) $4.50
(d) $6.00
4- Monash company LTD makes and sells only one product. The unit contribution margin is $5 , and the break-even point in unit sales is $16000. What are the company fixed expenses?
(a) $3200
(b) $80000
(c ) $32000
(d) None of the above.
5- The firm's fixed costs are $ 50000 , Variable cost per unit is $ 12 and selling price per unit is $ 16. The break-even points in units is.
(a) 3125
(b) 4167
(c ) 12500
(d) None of the above
6- Your local restaurant has annual fixed costs of $22000, the average meal price is the average unit variable cost $7 . What is the contribution margin ratio?
(A) 20%
(B) 30%
( C) 35%
(D) 40%
The casual furniture company manufactures outdoor furniture and incurred the furniture cost during the month of January.
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Items
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Cost
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Timber
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$ 22,000
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Paper
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$ 5,000
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Glue
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$ 400
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Wages assembly personnel
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$ 24,000
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Wages factory supervisor
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$ 3,500
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Factory cleaner's wages
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$ 2,000
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Sales commission
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$ 10,000
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Administrative staff salaries
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$ 4,000
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Depreciation - Factory office
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$ 3,000
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Depreciation-sales office Equipment
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$ 1,200
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Utilities, insurance Factory
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$ 6,100
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Utilities , Insurance- Sales Office
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$ 2,000
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Advertising
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$ 10,000
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7- Based on the above data, the period costs are:
(a) $ 17,200
(b) $ 27,200
(c ) $ 25,000
(d) $ 39,000
8- Based on the above data, The conversion costs are:
(a) $ 39,000
(b) $ 29,500
(c ) $ 20,000
(d) $ 35,000
9- Based on the above data, The prime costs are:
(A) $ 30,000
(b) $ 50,000
(C ) $ 65,000
(D) $ 51,000
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