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2. 1. A variable cost is a cost that may or may not be incurred, depending on management's discretion. occurs at various times during the year. varies in total in proportion to changes in the level of activity. varies per unit at every level of activity. 2. An increase in the level of activity will have the following effects on unit costs for variable and fixed costs: Unit Variable CostUnit Fixed Cost IncreasesDecreases Remains constantRemains constant DecreasesRemains constant Remains constantDecreases Want help? Click to download ACC 561 Week 4 QuizACC 561 Week 4 Quiz Copyright. All Rights Reserved by www.StudentsWhiz.comwww.StudentsWhiz.com

3. Copyright. All Rights Reserved by www.StudentsWhiz.comwww.StudentsWhiz.com 3. A fixed cost is a cost which remains constant per unit with changes in the level of activity. remains constant in total with changes in the level of activity. varies inversely in total with changes in the level of activity. varies in total with changes in the level of activity. 4. Hollis Industries produces flash drives for computers, which it sells for $20 each. Each flash drive costs $14 of variable costs to make. During April, 1,000 drives were sold. Fixed costs for March were $2 per unit for a total of $1,000 for the month. How much is the contribution margin ratio? 80% 20% 30% 70% Want more details? Download now ACC 561 Week 5 QuizACC 561 Week 5 Quiz

4. Copyright. All Rights Reserved by www.StudentsWhiz.comwww.StudentsWhiz.com 5. Contribution margin is calculated by subtracting total manufacturing costs per unit from sales revenue per unit. equals sales revenue minus variable costs. is always the same as gross profit margin. excludes variable selling costs from its calculation. 6. The equation which reflects a CVP income statement is Sales + Fixed costs = Variable costs + Net income. Sales – Variable costs + Fixed costs = Net income. Sales – Variable costs – Fixed costs = Net income. Sales = Cost of goods sold + Operating expenses + Net income. Want help? Click to download ACC 561 Week 4 QuizACC 561 Week 4 Quiz

5. Copyright. All Rights Reserved by www.StudentsWhiz.comwww.StudentsWhiz.com 7.A company sells a product which has a unit sales price of $5, unit variable cost of $3 and total fixed costs of $150,000. The number of units the company must sell to break even is 50,000 units. 30,000 units. 75,000 units. 300,000 units. 8. Only direct materials, direct labor, and variable manufacturing overhead costs are considered product costs when using variable costing. absorption costing. product costing. full costing.

6. Copyright. All Rights Reserved by www.StudentsWhiz.comwww.StudentsWhiz.com 9. Under absorption costing and variable costing, how are fixed manufacturing costs treated? AbsorptionVariable Period CostPeriod Cost Product CostProduct Cost Period CostProduct Cost Product CostPeriod Cost Want help? Click to download ACC 561 Week 4 QuizACC 561 Week 4 Quiz 10. Management may be tempted to overproduce when using absorption costing, in order to increase net income. absorption costing, in order to decrease net income. variable costing, in order to increase net income. variable costing, in order to decrease net income.

7. Copyright. All Rights Reserved by www.StudentsWhiz.comwww.StudentsWhiz.com About Author This article covers the topic for the University Of Phoenix ACC 561 Week 4 Quiz.The author is working in the field of education from last 5 years. This article covers the basic of ACC 561 Week 4 Quiz Answers from UOP. Other topics in the class are as follows:ACC 561 Week 4 QuizACC 561 Week 4 Quiz Answers ACC 561 Week 1 Quiz ACC 561 Week 2 Quiz ACC 561 Week 3 Quiz ACC 561 Week 4 Quiz ACC 561 Week 5 Quiz ACC 561 Week 6 Quiz For further information on the above topics you can always visit the website www.StudentWhiz.com www.StudentWhiz.com